Yo duck... it's so much easier to ignore the problems of derivatives than try to explain them, because they're too complicated for people to understand. The only one's that know what the fine print on those paper agreements mean are the one's who drew them up! How many people ever know what their banks rules are? How does the average Joe know what the terms of those contracts say? They don't. Today the FED has handed out more of that easy money twice already, to help bail out the theives that should go to prison. But that ain't gonna happen. If anybody ends up going to prison, it will be us if we can't pay for their bad loans. They could easily bring back debtor's prison ya know. If we can't pay for all this largesse through higher and higher taxes, and a dollar that's going lower and lower... while suddenly GOLD starts to north with a vengeance... then don't expect China to bail us out anymore either. Tell your bud's not to worry though. Gold isn't high enough yet! Tell them to borrow some of that equity in their real estate to buy gold and silver next year. That should be a great time for them buy that insurance. If they wait for the house to burn down, they can easily get less and pay more for a little insurance! I know the world thinks otherwise, but I was taught the old saying "you reap what you sow". But today we have a FED that is trying to make people think that's not really true anymore. But I suppose it's true if you're a buTTie of Ben Bernanke! :)
QWAK,J4D,Hedge funds and DIRIVITIVES the REAL economic MONSTERS that hide in the shadows and jump out and EAT people economicly!
TOO BAD they would NOT believe when WE tried to tell them!
It has just started and can't be put out and creating MORE FIAT to try, is like puting GAS on a fire, but that is what the FED will do and IS doing and has been, especialy since M3 was omited!
Put on your seat belts please, IT is gona be a BUMPY RIDE,most likely a CRASH but at least with you straped in the seat, it will be easier to IDENTIFY the BODIES!
Some say CASH, others PMs, still others say BOTH --- "What's in YOUR wallet?" :) Paper stocks/bonds/contracts or digits in a computer AINT REAL MONEY folks --- it's just PRETEND money a SUBSTITUTE for REAL MONEY!
Credit is great till the man says "PAY ME!" and YOU can't ---then it gets UGLY! IT Can cause CHAIN REACTIONS of UGLYNESS spining out in all directions causing INCREDABLE UGLYNESS too bad to IMAGIN.
When you lose RESPECT for the MONSTER (debt) IT eats YOU!
When every body loses respect for DEBT --- the MONSTER eats every one and every THING -- because --IT CAN,because IT got THAT BIG!
Not so fast, Perhaps:
U.S. Stocks Rise on Gain in Mortgage Applications; Pulte Climbs
By Michael Patterson
Aug. 8 (Bloomberg) -- U.S. stocks rose for a third day, led by banks and homebuilders, after mortgage applications gained the most since January.
Lehman Brothers Holdings Inc., the largest U.S. underwriter of mortgage bonds, gained the most in five years. Pulte Homes Inc. and D.R. Horton Inc. led a gauge of construction companies to its biggest advance since November. Cisco Systems Inc., the world's largest maker of computer-networking gear, climbed to a six-year high after boosting its sales forecast.
The Standard & Poor's 500 Index increased 14.65, or 1 percent, to 1491.36 at 11:38 a.m. in New York. The Dow Jones Industrial Average rose 86.57, or 0.6 percent, to 13,590.87. The Nasdaq Composite Index added 42.79, or 1.7 percent, to 2604.39.
The growth in mortgage applications helped stocks extend gains from yesterday that were spurred by a bullish economic outlook from the Federal Reserve. Homebuilders have tumbled 31 percent this year and financial companies have lost 5.6 percent on concern that subprime mortgage defaults will reduce profits.
``There are very significant opportunities in a market that is still fooling most of the experts,'' said Michael Williams, who helps oversee about $3 billion as managing director of Beamreach Trust in New York.
Stocks also got a boost after a government report showed sales at U.S. wholesalers climbed faster than inventories in June.
Lehman climbed $4.11 to $64.82. Bear Stearns Cos., the second biggest U.S. underwriter of mortgage bonds, added $4.84 to $121.73.
Citigroup Inc., the largest U.S. bank, added 74 cents to $49.33. Bank of America Corp. climbed 58 cents to $49.25. JPMorgan Chase & Co. rose 86 cents to $46.20.
The S&P 500 Financials Index gained 1.9 percent and contributed the most to the advance in the overall index.
D.R. Horton, the second-biggest U.S. builder, rose 81 cents to $18.20. Pulte Homes Inc., the third largest, increased $1.51 to $21.89. Toll Brothers Inc., the biggest U.S. luxury-home builder, climbed 71 cents to $23.66 after reporting third-quarter revenue that beat analysts' estimates.
The Mortgage Bankers Association said its index of applications to buy a home or refinance a loan rose 8.1 percent last week as cheaper borrowing costs encouraged more Americans to seek loans.
Homebuilders in S&P indexes rallied for a third straight day, climbing 5.6 percent as a group. The mortgage bankers' gauge of demand for credit for home purchases gained 7.4 percent last week. >