March 09, 2007

I hope you don't trust the government during times of financial crisis


You're doin a heckuva job there Hankie. You're right - there's no storm brewing. All is fine. Everyone move along. American Idol is on soon, right?

U.S. Treasury Secretary Henry Paulson said on Tuesday that a weakened housing market will not have a major impact on the U.S. financial sector, which he described as quite healthy.

In a roundtable session with reporters during a visit to Tokyo, Paulson said the housing downturn had had some impact on certain types of mortgages but he did not see it as a major problem.

"Some of the credit issues are there, but they're largely contained," Paulson said.
The U.S. Treasury chief was on the first leg of a three-country trip that will also take him to South Korea and China before he returns to Washington on Thursday.

He described global economic conditions as very healthy and played down recent drops in global equity prices.

"The global economy is more than sound," Paulson said. "It's as strong in the last couple of years as I've seen in a lifetime.

"All the economies are growing, inflation is low, and liquidity is high," he said.

35 comments:

Anonymous said...

I think we're going to need those trailers agian.

Educator said...

liquidity my ass! I have nothing.... I don't even have health insurance. And I have 3 college degrees WTF!

King of Loans said...

"You have to understand what happens when you pull the trigger on your loan. This isn't a video game. It's not Doom 2 and there's no reset button. You're dead. Over. Finished."

Richard said...

The government killed 2979 people on 9-11...the government killed 700,000 iraqi women and children...the government will nuke Iran...know why?

It's called the "oil grab"

A report came out on the oil drum last week...Saudi's largest oil field and largest in the world bar none is in terminal decline (Ghawar. The worlds 2nd largets field (Canterall) in Mexico is in catastophic decline...the world 3rd largets field in Kuwait (burgan) is in decline...Nigeria..Angola,,,the North Sea...North Shore ALL IN TERMINAL DECLINE.

You have 16-24 months before the markets wake up...and no it has never been about running completely out of oil...in fact boat loads of oil will stay in the ground long after humans have killed ourselves off over the "oil grab"...RATHER it is the perception that we are running out of oil that will chinch the deal.

The housing crash and peak oil seem to be on the same head on track.

You think you're gonna retire on a rocking chair overlooking a lake somewhere - you think your stocks are gonna continue to climb...you think your kids won't get drafted to fight in the "oil grab" war...think again...you'll be lucky to have food to eat.

Cheers.

Anonymous said...

Trust the government? Ha ha ha. That's a good one.

Anonymous said...

PAIN. Pain for Americans who are losing their homes or face rising mortgage costs. We are talking about a lot of people who can barely pay their loans today and live with a credit noose around their necks.

Anonymous said...

These people are so far removed from the realities that everyday people face from one fiscal month to the next that I personally would not put a lot of stock in anything that they say. It is like catching your cheating spouse in the act and as they deny what they are doing they ask if you are going to believe them or your lying eyes. When do you suppose was the last time any of these jokers had to make a car payment or even balance their own checkbook or do their own taxes? They live in an alternative universe.

Mort said...

Paulson = Hanky, Bernanke = Panky, & Bush = Spanky.

Anonymous said...

http://www.informationclearinghouse.info/article17251.htm

This article refers to the US Gov. Plunge Protection Team. The team games the market by buying large quantities of shares when the market falls. It was established by Reagan to prevent another plunge like the one in 1987.

Very interesting reading.

Does anyone know if it is true?

Anonymous said...

Ben Bernanke told politicians in Washington last week that the collapse of subprime mortgage companies had been "contained".

So there - now be quite - there is no problem.

Anonymous said...
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Anonymous said...

Man it's going to rain today. I blmae Bush.

Oh and walmart too.

And fox news, I know they have something to do with it.

Oh and Haliburton too.

veritas_faust said...

My faith in this administration knows NO BOUNDRIES!!! Having moved from New Orleans to Miami (I sure know how to pick 'em, eh?) I am just thrilled with the government response to a disaster. Though since we had the President's bother as Gov. when Hurricane Wilma blew through town we only had to wait 2 days for ice instead of 2 months.

Here is a link MSNBC ran about the FEMA trailers, turns out they have some manufacturing defects. Oh hell, you gotta die of something!

http://tinyurl.com/l3jax

Which reminds me...I am being a bad host, where are my manners perhaps you are hungry after reading this; Government cheese anyone?

Anonymous said...

Lips moving and all that. The crash will take time, but the decline is inevitable.

trashwacker said...

The global economy is more than sound," Paulson said. "It's as strong in the last couple of years as I've seen in a lifetime.


This has as much credibility as the line constantly heard thruout America's vast trailer park system, home to the white trash underclass and other assorted Wal-Mart shopping, Bush supporting scum:

"Don't worry sis, I won't c... in your #!%#!*!"

Mark in San Diego said...

Thank you Herbert Hoover (Paulson) hmmmm. . .didn't Hoover say something like that. . .1929 crash would have no impact?. . .will have to Google that one. . .on a related matter - check out foreclosure.com for SD county - "clerks gone wild" this week - over 800 new listings or 31 pages. . guess some county clerk finally caught up on filings. . .

Anonymous said...
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Anonymous said...

richard, those aren't black helicpoters in your backyard man, just rocks...really, I mean it...put the Uzi down, step away from the window slowly and all will be well

joey said...

Nothing ever effects anything and nothing bad happens. That's why everybody is shocked when it DOES happen.

Anonymous said...
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Anonymous said...

They lie beacuse they have to. If they tell the truth can you imagine the panic on the streets? Gloom and doom are self-fulfilling prophecies which will only make the spiral worse.
There's plenty of information on the interent about the true condition of our economy but most sheeple would rather watch Idol than bother to get educated.
Actually, common sense would tell you this couldn't go on much longer. People can't afford these home prices and the financial markets can't support this crap paper anymore. Common sense tells you the unwinding will affect EVERY sector fo the economy.

Govt' bailout?? There is no precedent for this situation. Never before have we had $0 down, stated income with poor credit neg am loans in abundance. However, this boom made some people lots of money. These "investors" will pick up the foreclosures while the average Joe loses everything....ah, the shrinking middle class.

Aaron Krowne said...

I think you should call him "Pauli". Then you can say things like "Pauli's Sure!!" (pronounced "shore")

Anonymous said...

You forgot Rummy's picture. Another competent and truth telling wizard from that group.

libtrash tard said...

Those white trash Clinton-loving libtards are about to get the hammer in Californicate. No more buying cheap Chinese crap from Target

Anonymous said...

Target's not that cheap - don't confuse it with Wal-mart!

Anonymous said...

Gee, what do you think he would say? That the derivative maket dwarfs the size of the NYSE, yet most of the attention is focused on the NYSE?

Maybe he'll show you where and in what he has his funds, but that would be shocking.

Anonymous said...

"Brownie [aka horse guy], you're doing a heck of a job!!!!"

A month later Mike Brown was out of a job. One of many thrown under the bus...

Anonymous said...

Trust but verify......mostly verify!

Anonymous said...

Govt' bailout?? There is no precedent for this situation. Never before have we had $0 down, stated income with poor credit neg am loans in abundance. However, this boom made some people lots of money. These "investors" will pick up the foreclosures while the average Joe loses everything....ah, the shrinking middle class.

March 09, 2007 7:24 PM

-------------------------------

So you are saying THIS TIME IT'S DIFFERENT?

Weren't we (well you) mocking REIC for saying 'this time it's different'? My how quickly the tune changes.

Mort said...

If a bank has a zero reserve requirement and therefore makes money from thin air, how can it go BK? Especially since they don't even count the money and book nonexistent payments as profits and then take bonuses and stock options based on same. Why does anyone assume there will be a problem? Repeat after me: "It's not real money, it's not real money". There, now don't you feel better? No? Well try hyperventilating into a paper bag or something. Mort out.

Anonymous said...

Richard

"you think your kids won't get drafted to fight in the "oil grab" war...think again."

If I get drafted with some rich boys spouting support for the invasion of Iraq ... unfriendly fire.

Anonymous said...

I love it that Paulson has the b@lls to advise the Chinese that they are missing out by not getting more involved with the "global" financial markets.

Those big hedge funds must really be needing more funny money to stay afloat a bit longer.

I guess we'll find out soon whether the Chinese are smart or stupid. I am thinking they're too smart to fall for this pitch by Paulson.

bozonian said...

"Inflation is low".

Bullshit.

Why are house prices 3x or more in Los Angeles. Just because the government doesn't include house prices in CPI, doesn't mean there is no inflation. You can't just define away a problem.

Anonymous said...

When you got a Bush, a Dick and a Colon in charge. Stop asking why things are fucked up.

FlyingMonkeyWarrior said...

Target's not that cheap - don't confuse it with Wal-mart!
********
Actually, Super Target is cheaper than Wal mart.