December 27, 2007

They knew, and they did nothing. And now the world will pay the price.

They called them "liar's loans" folks. Liar's loans. And these bastards and many more did nothing about it. Why? Because everyone was getting rich, rich, rich.

They knew it was a big scam. They knew the money wasn't gonna get paid back. They knew it was a bubble. They knew fraud was everywhere. And they did nothing about it.

And then, as it always does, the entire Ponzi Scheme came crashing down.

And now they know what's coming next. Whether they admit it publicly or not. It hath been foretold. And no matter what they do, no matter how they spin, the cleansing will now take place, one way or another.

Man, I never thought I'd see the day. And yet we will. Take care everyone.

Crisis may make 1929 look a 'walk in the park'

As central banks continue to splash their cash over the system, so far to little effect, Ambrose Evans-Pritchard argues things are rapidly spiralling out of their control

Twenty billion dollars here, $20bn there, and a lush half-trillion from the European Central Bank at give-away rates for Christmas. Buckets of liquidity are being splashed over the North Atlantic banking system, so far with meagre or fleeting effects.

As the credit paralysis stretches through its fifth month, a chorus of economists has begun to warn that the world's central banks are fighting the wrong war, and perhaps risk a policy error of epochal proportions.

"Liquidity doesn't do anything in this situation," says Anna Schwartz, the doyenne of US monetarism and life-time student (with Milton Friedman) of the Great Depression.

"It cannot deal with the underlying fear that lots of firms are going bankrupt. The banks and the hedge funds have not fully acknowledged who is in trouble. That is the critical issue," she adds.

Lenders are hoarding the cash, shunning peers as if all were sub-prime lepers. Spreads on three-month Euribor and Libor - the interbank rates used to price contracts and Club Med mortgages - are stuck at 80 basis points even after the latest blitz. The monetary screw has tightened by default.

York professor Peter Spencer, chief economist for the ITEM Club, says the global authorities have just weeks to get this right, or trigger disaster.

Bernard Connolly, global strategist at Banque AIG, said the Fed and allies had scripted a Greek tragedy by under-pricing credit long ago and seem paralysed as post-bubble chickens now come home to roost. "The central banks are trying to dissociate financial problems from the real economy. They are pushing the world nearer and nearer to the edge of depression. We hope they will eventually be dragged kicking and screaming to do enough, but time is running out," he said.

53 comments:

Anonymous said...

They did it for the American Dream of being in a lifetime of serfdom

Anonymous said...

string up ALL up, and let 'em HANG !!!!!

Anonymous said...

I think this whole thing happened under Alan Greengas. Bernanke was put between a rock and a hard place. He raised rates but eventually had to stop because the wheels were coming off. They don't care if inflation runs at 20% for the next five years. They just want to keep the financial machine from locking up. They are hoping to deflate the US$ value by 50% over the next year or two so that home prices won't have to drop 50%. The tricky part is to keep incomes rising at the same level. How will they do that with the outsourcing and globalization?

Crooks with flag lapel pins said...

IMO the worst thing is this new "no 1099" law, retrocative to Jan 1 2007, that allows the cash-out refi and heloc crowd to get off scott free tax wise. This is rewarding Casey Serin and other gamblers cause they will feel no pain for their actions. They got that cash out and have no tax liability.

The incentive to walk away is now stronger than ever and the rate of people doing just that will now increase. Moral hazard be damned - this administration knows that the bankers are smelling complete victory and are expediting the coming emergency that will allow them to invoke PD-51.

In broad daylight they are stealing the country.

randy said...

Oh I see, the FB liars and thieves who lied about their income, encouraged appraisers to overstate the value of a property so they can qualify and steal money from the lenders
are the ‘victims’.

Guess we have to blame somebody.
How about the goberment
No no, how about the bankers
No how about the fed
No how about the REIC
Oh wait, it’s the mortgage brokers.
No for real it’s the NAR..

FBers, repeat after me

I AM RESPONSIBLE .

Anonymous said...

Yes and they are sacrificing the best of the American people to support the crooks.

Anonymous said...

The MSM is the greatest culprit by misleading people with their feel good stories and bold promotions dressed up like serious journalism and analyses. The sooner people begin to look for and read their news elsewhere the better. Media outlets like the Wall Street journal, Financial Times and CNBC are nothing but con merchants who sell the public a false reality.

Peter T said...

But what can they do now, beside showering money on insolvent banks? Decrease the federal funds rate, that they can do. So expect another rate cut at the next Fed meeting. Inflation in what you need (food, energy), deflation in what you want (houses, cars etc.).

Edgar said...

York professor Peter Spencer, chief economist for the ITEM Club, says the global authorities have just weeks to get this right, or trigger disaster...

Yeah, right. We could only hope for an economic disaster, we need an economic disaster. They keep propping things up so the sheep won't revolt. There will be no economic disaster.

Bitterrenter said...

Isn't it ironic? The last 2 times we had a long period of conservative rule we had intense periods of unrest.

The republican savages ruled for the 30 years prior to the Great Depression that almost sank this pisspoor land mass we think is a country. If Roosevelt hadn't injected a heavy does of socialism we would have killed the rich and the corporate and Stalin would be our hero. Then the republicans were forced back under their slimey rocks for 40 years while liberals built a semi-country based on equality, opportunity and fairness.

The republicans savages took control again in the 50s and promoted a conformist, stifling culture of tolerance for all that is wrong with human nature. Prejudice was applauded, no, encouraged. Indifference to anyone but the majority was the norm. Shortly after the democrats lost their bigots to the republican party. The effects of this dull conformity and injustice-based society led to the turbulent but highly progressive 60s.

This cycle, which started in the late 70s, spoiled boomers voted for republicans thinking that they'd cut off the poor people and then the boomers could split the cash. Oops, turns out conservative economic policies destroyed lots of the boomers too! Oh well, fuck em.

This time I hope a liberal populist emerges who convinces people to round up the conservatives and put them in work camps to be re-educated. Ah, how I long for the creation of the American gulags.

Peter T said...

> IMO the worst thing is this new "no 1099" law, retrocative to Jan 1 2007, that allows the cash-out refi and heloc crowd to get off scott free tax wise.

No, the tax on forgiven cash-out refi and HELOCs has not been abolished, except the money was used for substantial improvement of the primary residence. The law has been changed that forgiven debt is not taxed, if the money for used for (1) aquiring, (2) constructing or (3) substantial improvement of the primary residence. It remains to be seen, of course, what the IRS accepts as substantial improvements, but a paid-off credit card should not be it under any circumstances.

FB said...

What I Have Done To Prepare For The Depression:

1. Good Job
when that gets lost

2. Emergency Fund
when that runs out

3. Whisky
and when that runs out

4. A High Ledge

Stray Wolf said...

Makes you wonder whether this isn't being planned 'on purpose' in order to push some sort of 'changes'.

Anonymous said...

Uh, Ok
so where the Hell do I put the 300K I got when I sold my bubble area house last year?

Is my Bank going to fail & that money just disappears?

HELP!

chix-a-dee said...

You guys are so dramatic - the FED is there to prevent depressions...so everything is ok, after all this is 80 years later, we have computers, cellphones, and American Idiol - so it can never happen again. Go back to your mom's basement with you porno, and wrap this blog up, nothing to see here.

Anonymous said...

Hey those three should do a porno together.

shtove said...

Hmmm, Bernard Connolly is a bit rabid. Doesn't convince me.

Anonymous said...

Uh, Ok
so where the Hell do I put the 300K I got when I sold my bubble area house last year?

Is my Bank going to fail & that money just disappears?

HELP!



Foreign bonds. Gold and silver. Guns and ammo.

Anonymous said...

Hey wait. If I blame the fed for my stoopid investments, I may get away with it.

f'ed said...

there's even an evangelist exposing the central bank fraud...way ahead of his time!

http://youtube.com/watch?v=30-WtZTH06o

kenduffelsniffenspotzen said...

Media outlets like the Wall Street journal, Financial Times and CNBC are nothing but con merchants who sell the public a false reality.
==================================
Same old same old.

eric in vegas said...

"You guys are so dramatic - the FED is there to prevent depressions...so everything is ok, after all this is 80 years later, we have computers, cellphones, and American Idiol - so it can never happen again. Go back to your mom's basement with you porno, and wrap this blog up, nothing to see here."

Exactly! Come on guys it's different this time. Our standard of living is just too high.

Anonymous said...

Don't kid yourself. Wall street was loaning money to homebuyers they should not have loaned to BUT, they loaned each other 350 trillion dollers they didn't even have. Corperate bonds, dirivatives, and don't forget the gajillion doller buyouts that were happening every day. Most of these multi gajillion doller companys(scams) didn't exist 5 years ago.

Anonymous said...

Let the cleansing begin!

Anonymous said...

crooks with flps said:

"...this administration knows that the bankers are smelling complete victory and are expediting the coming emergency that will allow them to invoke PD-51."

What is PD-51??

mhrist said...

I feel like a sprinter at the start of a marathon. Wait for it! Wait for it! :)

We were lucky in the Depression because the government helped people and encouraged compassion. Some other countries got the likes of Stalin and Hitler. How will the dice roll this time?

Anonymous said...

Guns and ammo.

What do YOU suggest?

Anonymous said...

"chix-a-dee said...
You guys are so dramatic - the FED is there to prevent depressions...
"

Hey clueless bimbo, you're a PRIME exmaple of what the DUMBING DOWN OF AMERICA has become...

Anonymous said...

I WOULD HAVE TO GET 300 PERCENT INTEREST IN ORDER TO BREAK EVEN ON THE LOSS IN PURCHACE POWER MY SAVINGS HAVE TAKEN IN RELATION TO THE INFLATION IN REAL ESTATE, ENERGY AND FOOD ....BANKERS VICTORT COMES WITH 30 PERCENT DECLINE IN STOCK PRICES???OR THE PAYCHECKS COMING FROM ENABLING IT???

Anonymous said...

DONT WORRY... HITLER DID IN THE CHRONICALY UNEMPLOYED AND TRANZIENTS SEEKING TO RUN FROM TROUBLES, GYPSIES AND INTELLIGENSIA BEFORE THE jEWS AND DISSIDENTS AS MENTALLY DEFECTIVES AND AFTER THE OPPOSITION PARTIES AND IMMIGRANTS, SO YOU INTELLIGENT PEOPLE HAVE NOTHING TO WORRY ABOUT BECAUSE THE RICH WITH ANYTHING WORTH STEALING WERE DONE IN ONLY WHEN THEY HAD ANYTHING WORTH STEALING..........

Anonymous said...

Hi bitterrenter,

You said "Ah, how I long for the creation of the American gulags." The conservatives already did that. It is called "Guantanamo Bay". Liberals would never do that.

BTW if it were up to the conservatives the Sun would still be going around the earth and Intelligent Design would be the only theory of human origins.

Back to the original topic. I agree that things will get worse before they get better. I don't think things can get as bad as the great depression. Just my gut feel.

stink nugget said...

No mention here of the front page WSJ article about a "hairball of risk" leftover from a Liar's Loan CDO?
I pray that the Christmas spirit brings a lump of sh*t to everyone involved in real estate in the last 6 years.
A turd for Greenspan, Bush, Bernanke, Yun, Lereah, century 21, long & foster, realtor.com, trump, wamu, merrill, citi, cramer, and that douche bag who lives two doors down with the short sale sign in the yard.
Happy Holidays!

Roccman said...

Peak money - check

Peak oil - check

Peak climate - check

Peak people - check

Peak food - check

Peak water - check

Enjoy the dieoff!

Got bunker?

Anonymous said...

The ultimate responsibility is with a corrupt GOP (and Dem) congress and corrupt Bush administration that failed the people of America.

I would start with an old fashioned mass hanging of our entire congress and administration in front of the whitehouse (televised or course) to send a message to future politicians.

If the Chinese and Arabs had thier way these dudes would already be dead for losing so much of thier money.

Anonymous said...

Bitter Renter. You are a devout communist. go back to the library and drivel over Communist Manifesto.

You need to take and economics class and US HISTORY I. You need to realize that the government is not the solution, the government is the problem.... too much of it distorting and corrupting the natural course of things.

how about individualism and personal accountability? you don't work, you don't eat. you don't go to school, you shovel shit. too bad. that is it. survial of the fittest.

the purpose of the United States was not for people to have 50% of their paychecks be extorted out of them for lazy fucks and illegal aliens to mooch, nor illegal wars and Bono aid for Afrihole.

move to Cuba...see how their government healthcare is doing? see what democrat socialism did to the people of new orleans?? Katrina? it turned them into helpless babies. if the gubmint wuzzn't their to feed them, they'd just loot and pillage. they were not born like that... they were conditioned to the low level by sucking the gubmint tit and the NEA dumming them down.

i want to help people and make donations of time and money... BUT GUESS WHAT... THE GOVEMENT FORCES A DONATION OUT OF ME UNDER DURESS AND THREATS EVERY APRIL 15TH, SO EAT SHIT YOU COMMIE MORON.

SeattleMoose said...

A great evil is behind all of this. A small utterly corrupt elite of global financial/banking interests runs the world. They have been slowly advancing their agenda since 1913 when they took over the U.S. by establishing "THE FED" (which is not accountable to the American people but to a handful of global banking interests).

There is no humanity left in this group. They represent pure corruption and greed. If it seems like the world is going to #ell...it is...because our "leaders" care not about advancing the common good, but only their own short term profits. And their behavior becomes more blatant, arrogant, and criminal. It will not end well for these parasites....

Son Of Jor-El said...

I like the blog, I agree those greedy corrupt corporate suits ought to be sent to a PMITA prison for a long time (PMITA = Pound Me In The Ass). However I think you are overreacting about the effect this will have on the economy (depression). Housing was bad, yes, but no one forced people to buy homes at inflatable rates, that they had no business buying. Housing is only a small portion of the overall economy. Eric in Vegas is right people have too high a standard of living. Stop buying so much useless crap on credit, and you won't lose your house and ruin yourself financially

Crazy Train said...

Bernanke tried to orchestrate a soft landing by raising rates consistantly, but the damage was done. There was no stopping it. Alan Greenspan had already set the wheels in motion for the housing collapse.

Anonymous said...

Stray Wolf,

change = A.M.E.R.O.?

Anonymous said...

Bush and Cheney plan to start WWIII long before there is another depression.

My plan is to rent 10 party girls in Vegas over New Years with my cash out refi before inflation hits and I can't afford them anymore.

LauraVella said...

Why is it Paul Volcker was able to see the real estate bubble in 1979? He curbed it by raising rates like crazy. But Greenspan said there's no bubble in 2004?

Everyone now knows greenspan just didnt care because his buddys were getting rich, and he was asked to stay on over his tenor at the fed because they couldnt find anyone else to replace him.

An 80 year old should not be allowed to work in such a high profile position such as the federal reserve chairman.

Bitterrenter said...

12:55 Savage,

Once again you show the weakness of your ignorant gutter ideology by whining about "lazy fucks and illegal aliens" who you blame for your having to pay taxes. About 3% of what you pay to the government as your fee to live here goes to help feed and shelter poor women and children. Not a bad deal. Most of what you pay goes to keep you in a comfortable, first rate society. But you tell yourself it's all "welfare" because you're dumb, selfish and a bad citizen.

As for government's role in a civilized society: This country has prospered only because of a strong central government. The weakening of it over the last 30 years of conservative rule has led you to believe it is inefficient.

Again, if it weren't for liberals and the creation of a strong government, you'd still be shitting outdoors. I don't think you could be more ignorant, so you obviously didn't benefit from the widespread educational opportunity offered you by a liberal-based society, but that's probably due to a failing of your own.

Anonymous said...

GreenTurd claims there was nothing the Fed could do to stop the bubble. That s a complete lie. If the FFR was high enough, it would force the long bond rates up. People would rather buy treasury notes at 5% than consumer or corporate bonds at 5%. Now all of this bubble wealth will be destroy by the end of 2008. You can inflate all you want, but if people can't afford it, they can't buy it.

As for Gitmo, it is no different than the POW camps of WWII where German, Italian and Japanese prisoners were kept for years with no lawyers or trials. Did you liberal idiots really think FDR gave lawyers and civilian trials to the 2 million POWs captured by the US military during WWII? When German spies/saboteurs were caught in the battlefield, they were executed after a military field trial, usually within a day. People who fight in civilian clothes are not covered by the Geneva Convention.

Anonymous said...

12:55 Savage,

Once again you show the weakness of your ignorant gutter ideology by whining about "lazy fucks and illegal aliens" who you blame for your having to pay taxes. About 3% of what you pay to the government as your fee to live here goes to help feed and shelter poor women and children. Not a bad deal. Most of what you pay goes to keep you in a comfortable, first rate society. But you tell yourself it's all "welfare" because you're dumb, selfish and a bad citizen.

As for government's role in a civilized society: This country has prospered only because of a strong central government. The weakening of it over the last 30 years of conservative rule has led you to believe it is inefficient.

Again, if it weren't for liberals and the creation of a strong government, you'd still be shitting outdoors. I don't think you could be more ignorant, so you obviously didn't benefit from the widespread educational opportunity offered you by a liberal-based society, but that's probably due to a failing of your own.

December 28, 2007 3:46 PM



Try again douche!!!! Most of the US budget is for welfare (ie medicare, medicaid, social services, SS, etc.).

http://www.cbpp.org/4-20-07tax2-f1.jpg

Both parties have fucked us in the ASS - time for new blood, not the same old leeches that permeate DC.

Anonymous said...

>> Peak money - check

Peak oil - check

Peak climate - check

Peak people - check

Peak food - check

Peak water - check

Enjoy the dieoff!

>> Got bunker?

Nope - got American Idol new season starting next week! Everything is going to be alright now!

Bitterrenter said...

Misinformed 4:47 pm poster,

Sorry, Medicare and Social Security are not welfare programs.

At its PEAK welfare only amounted to 7% of the budget. Now it's around 3%. By comparison defense consumes 27%.

I might add that SS accounts for 40% of the average retiree's income. That range goes from 88% for the bottom fifth to 18% for the top fifth. Any way you slice it, without SS we would have widespread, UGLY, old-age poverty. Now I know you filthy savages don't mind a country that looks like India with old beggars clogging the streets because you believe you won't be one of them. But we civilized folks find the system we have now to be perferable. There's lots more of us as evidenced by the resistance to changing SS like the ignorant republicans have been trying to do since it was started.

As for welfare, most of you miscreants on the right favor a culture of wealth accumulation in few hands, HATE the redistribution of wealth and have no problem that 0.1% control 21% of the wealth. For that to be possible there needs to be millions with nothing in order for a few to have billions. In effect we've sacrificed a large group of people so that a few can have an obscene amount more than they need. So is it so terrible that we give those with nothing some small remittance in the form of food and shelter?

Nevermind, I know the answer to that. People like you would have been very happy in ancient Egypt sweating your balls off in the hot sun building a pyramid for the one guy with all the money. It's perverse and quite sickening.

Here's wishing you and those like you a new year full of economic pain and suffering so that you may come to know the meaning of living in a merciful, altruistic culture that takes care of its citizens.

Anonymous said...

Medicare and SS not welfare?!?!? WTF would you call it? It pays out more than it takes in. Thats called WELFARE!!!!

Anonymous said...

Bitter Renter. You are a devout communist. go back to the library and drivel over Communist Manifesto.

You need to take and economics class and US HISTORY I. You need to realize that the government is not the solution, the government is the problem.... too much of it distorting and corrupting the natural course of things.

how about individualism and personal accountability? you don't work, you don't eat. you don't go to school, you shovel shit. too bad. that is it. survial of the fittest.

the purpose of the United States was not for people to have 50% of their paychecks be extorted out of them for lazy fucks and illegal aliens to mooch, nor illegal wars and Bono aid for Afrihole.

move to Cuba...see how their government healthcare is doing? see what democrat socialism did to the people of new orleans?? Katrina? it turned them into helpless babies. if the gubmint wuzzn't their to feed them, they'd just loot and pillage. they were not born like that... they were conditioned to the low level by sucking the gubmint tit and the NEA dumming them down.

i want to help people and make donations of time and money... BUT GUESS WHAT... THE GOVEMENT FORCES A DONATION OUT OF ME UNDER DURESS AND THREATS EVERY APRIL 15TH, SO EAT SHIT YOU COMMIE MORON.

December 28, 2007 12:55 AM

If you don't like living in this country and you feel that every April 15th you're being extorted, then why don't you move out of this country? America, either you love it or leave it you idiot!

Bitterrenter said...

Actually, Medicare and SS take in MOE than they pay out, they have for years. It's not until the boomers starting getting their that we'll have problems.

But ignorant conservatives wouldn't know that.

Anonymous said...

If you don't like living in this country and you feel that every April 15th you're being extorted, then why don't you move out of this country? America, either you love it or leave it you idiot!

December 29, 2007 5:33 AM

What a dumb arse. First of all, you can't "give" to one without STEALING from another...but communists either don't understand, or worse, approve of this. Second, if the producers of this nation left, you would be eating dirt to survive. I'm far from "the privileged, but I do believe I should work for what I have and because of that, should be entitled to keep what I earn instead of having communist laggards steal it from me.

Jennifer said...

Funny how the communists always say "we" should give, when in practice it means "YOU" will give. Liberals {communists, progressives, whatever is the word of the day) always preach compassion, but are always the least giving. Check out what states give the most, they are the most conservative in the country - it is fact. Liberal Hypocrites!

Bitterrenter said...

States mean nothing in terms of giving.

Go see the stats at the Journal of Philanthropy webpage. They reviewed the book that said conservatives give more than liberals. What they found is that religious conservatives give slightly more than religious liberals but that non-religious liberals give more than conservatives. In fact, non-religious conservatives give the least of all. Think george bush fratboy republicans and you've pictured the stingiest people on the planet. As for religious cons in the south being so generous: giving to your church is self-serving and all they use the money for is wood for the crosses they burn in other peoples' yards.

http://philanthropy.com/free/articles/v19/i04/04001101.htm

How do you people think we're going to believe you're the most giving when your ideology is based on the selfishness and greed? You HATE helping other people.

Anonymous said...

They knew and did nothing (to stop it)...

Sounds eerily similar to 9/11...