Says "The behavior in what we are observing in the last seven weeks is identical in many respects to what we saw in 1998, what we saw in the stock-market crash of 1987, I suspect what we saw in the land-boom collapse of 1837 and certainly the bank panic of 3/8 1907"
Greenspan, now a private consultant, said euphoria takes over when the economy is expanding and leads to bubbles, "and these bubbles cannot be defused until the fever breaks," the Journal said.
The Heat Is on ..... http://www.youtube.com/watch?v=H_6IQN56GzA&mode=related&search=
Something WICKED this way comes!!!
One Eye . O
QWAK,As Asia and others back away from buying more US DEBT the crunch continues to grow!
By bundeling and over rating to "AAA" the dirivitives have also killed other debt markets and with out CHEEP CREDIT the wheels wabble and fall off the wagon!
QWAK,canucanoe,With out some LIMITING FACTOR out side the controll of the BANKERS and their CORRUPTED governments they will just do the SAME DAMN thing over agen!Just like they have done SOooooooo many times befor!
You have NOT begun to see PAIN yet! That part is yet to come, so far it is just a little PINCH!:(
What we are seeing now should have happened in the 80s insted they came up with DIRIVITIVES to paper over and both HIDE and FEED the MONSTER!
Throwing a rock, sending off a rocket, shooting a bow... are all productive processes. Excesses of banking are not. You confuse gravity with returning to a productive norm. There is nothing wrong with the functional process and that is your claim. There is something wrong with excess, and that will be taken care of with some pain. But the process will remain because it is productive, no matter what your gold riven nonsense says.
QWAK,listen to THIS it is well worth a fiew min. of your time and will easly explain that this economic mess is much biger than most people realise and will take years to unravel!
In this 1982 movie based on a novel by William Styron, a young mother on her way to a Nazi concentration camp had to make a horrible choice - which one of her two children would she send to the gas chamber and which one would she save? This is where the Fed finds itself today. They are on a tightrope between two horrible choices. 1) Raise interest rates to defend the dollar and choke off price inflation. This would cause huge problems with the mountain of debt our country has piled on and would crush housing or 2) lower rates to save the credit bubble, knowing price inflation will increase as the dollar falls and all those cheap imported goods and commodities rise rapidly in price.
The first choice involves playing with a deflationary depression similar to that of the 1930�s as the money supply is held in check and debt defaults skyrocket forcing mass foreclosures, bankruptcies, closings of banks, and widespread loss of capital as the stock markets crash. The latter choice would force the government to inflate and most likely hyper inflate the currency - essentially destroying it as they pay off existing debt with dollars worth far less in terms of purchasing power. Based on comments by Fed Chairman Ben Bernanke and current monetary policy, it appears as though the choice will be made to sacrifice the currency. This choice will likely result in hyperinflation and the destruction of the US dollar as the world�s reserve currency."
The mighty dollar is to be sacrificed to delay the inevitable just a little longer! It is a bad choice but there is no good choice as this should have been confronted back in the 80s but back then the choice was made to resque the corrupted system with an even more corrupt system DIRIVITIVES!
Another BLEAK article ... "Negative Amortization and Interest Only: The Next Mortgage Bomb?"
Mentioned in the above article were these words of wit,
"It�s already an accepted fact that people who bought homes with zero money down and are now in a negative equity situation are quite likely to go into foreclosure, however, how about people who never paid down a lick of principle over the time they owned the home and/or are now dealing negative amortization to the tune of 10-20%?"
"It�s quite possible that there are home owners out there who on top of 20% worth of negative amortization from their mortgage loan, are dealing with depreciation in the area of 10, 20, even 30%. Even if you can afford to make the payments, facing down the barrel of owning 30-50% more on your home than it�s worth is a horrific situation for a home owner to be in."
"Considering how many new home owners are in this situation, what will this do to new home buyer psychology long-term? Americans aren�t used to hearing (and have a hard time dealing with) financial horror stories from home ownership."
One Eye . O
QWAK,canucanoe,How far can you throw a ROCK? how far can a bow shoot an arrow? How far can a ROCKET fly? Gravity is the limiting factor. That is YOUR PROGRESS!
In banking a similar PROGRESS occured too based on similar thinking!
Ultimitly with banking when carried to extreams because of little or no real controls they are extreamly destructuve so some sort of limiting factor is nessary or GREED and FEAR become the only limiting factors and they have no limits!
It may be posable that THIS last straw did NOT break the camels back, how ever that camel is CRIPLED and will likely DIE!:(
The FIAT system is a HOAX it just takes a long time to play out so people forget what happened a generation or two befor and do IT agen! They like to think/believe THEY are smarter and better so THIS time it will be DIFERENT and they can create WEALTH out of NOTHING just by being more CLEVAR! LOL They NEVER are but they always like to think they are!
Comingling? Big deal. Investment firms/clubs/hedge funds and investors have been buying both bonds and stock for eons and co-mingling them.
And they have been buying paper that becomes worthless. let those that buy the worthless paper suffer their consequences, just as any of us would. Let's make sure not to bail out someone else's mortgage on top of our own!