January 29, 2008

HousingPANIC Stupid Question of the Day


It's been quite the ride.

So what do you think is coming next?

58 comments:

Malcolm said...

It it’s anything like what Detroit has gone through in the last 30 years, it will be a “death of a thousand cuts”.

We’ll have people talking about “turning the corner”, but no corner will be turned. We’ll have the blame passed back and forth. Lots of talk, but no real action.

Hope comes from the fact that there’s still enough left in the country to bail out the troubled spots; as long as they don’t pass the blame and go on and on about “turning the corner.”

If anyone but Obama gets elected, it will be business as usual, with things getting progressively worse until the people can’t stand it anymore and kick all of the bums out.

If Obama gets elected, it’s 50/50. If he wins by a landslide, it could jump-start the mentality of the country enough to take on the tough challenges. If he wins by a sliver, it could be rough going.

Now, before anyone gets on me about this whole Obama winning. I am not talking about any of his policies; I’m talking about the “spiritual boost” he could bring. Even if his policies were an utter failure, the breath of fresh air he would bring might shake us all awake; and create the optimism necessary to jump-start the economy.

And no, Bloomberg won’t win the election.

Anonymous said...

This is too funny!

http://providence.craigslist.org/wan/554551884.html?ref=patrick.net

silver streak said...

Major bank implosion within a week.


FSLIC/FDIC bailout legislation.

two strikes said...

It's an election year, so federal spending will go crazy and nothing will be too whacky or expensive if it eases perceived economic pains and keeps the voters calm. Bernanke will similarly pull out all the stops to try and keep the banking system's problems hidden from the public.

Meanwhile inflation will kick in at levels not seen since the '70s. Easing credit will send consumers back to the stores. Equity prices will rise along with prices of commodities and precious metals as we experience what Ty Andros calls the "Crack-Up Boom".

No one knows when the party will end or what will collapse the final bubble. My guess is 2-3 more years of madness.

Instead of cash, 1/3 of my money is in bear funds, 1/3 is in long positions (mostly oil & commodities) and the rest is in precious metal mutual funds with some junk silver coins just in case.

Anonymous said...

The next big shock (I think) will be all the homedebtors mailing house keys to thier mortgage holder just before the school year end. Spring will bring a change alright, but not what the banks are looking for.

guy n. cognito said...

the GSEs are finito santiago.

lawyers are the new food supply.

*ahhhhhhh* one can dream...

joe 12p said...

Inspiration is a powerful force Keith, but along with the charismatic leader a nation has to muster the will for change and reform. Do Americans have the inner strength to summon a national will? I don't see it in the narcisstic young people or the cynical Gen-Xers.

Obama is a nice fellow, and he gives a fine speech, but can he lead a nation of whiny miscreants? Herding cats would be an easier job.

America IS dead... said...

Lies, lies and more lies...

America is DEAD.

goron said...

we're living in Alice's Wonderland; the sensical and non-sensical abound; I have no idea what's going to happen.

DOPES is a DOOFUS said...

DOPES will be hired to be Yun's public relations coordinator at the NAR.

Anonymous said...

.


The Tilt-a-Whirl



.

Anonymous said...

What is Obama but an empty suit? Can anyone tell me what he has done so far as an Illinois state senator or a US senator? I know he is pandering to the illegal immigrant vote be proposing drivers licenses for 30 million illegals.

The only reason people think of him as a change is the color of his skin, as if that means change. Of course leave it up to stupid, shallow people to equate a person with different skin color to meaningful change. If anything, Obama represents the status quo. He offers to buy Latino votes with drivers licenses for illegals. He offers more welfare programs. He offers a bailout for bankers via a FB bailout funded by taxpayers. Has he even talked about the economic problems? Has he called for reform of The Fed? Has he criticized the overwhelming taxation of Americans? We are taxed to death by the feds, states, counties, cities, school districts and more fees and taxes and registrations. He ignores inflation. He is a lawyer from an Ivy League school. So what changes has he called for that would ease the burden on the middle class?

Anonymous said...

silver streak said...

Major bank implosion within a week.

FSLIC/FDIC bailout legislation.

As I watched the STFU autograph hour and listened to the spew, and the clapping monkeys, it dawned on me that "Our Leaders" still haven't figgered out that the money is gone. (Although Nancy P sure looked like she forgot her Bare Minerals) No one wants to acknowledge the elephant in the room. We all talk about how bad things are getting, but there is always this imaginary, positive spin on it (and everyone at HP has magic protection and popcorn):

Lets bail out the FSLIC/FDIC, and while we are at it we can also bailout Fannie & Freddie. Oh, and don't forget the bailout for Ambac.

"No rebates for FB'ers but lets take the money and put it into public works and fix the infrastructure. WhoaBoy that will be a long term fix and will get em shopping again.

Or, lets stop payroll taxing middle class America for a little while. Boy, that will fix everything won't it? Get em spending their fake money again.

Or, how about "as soon as the banks do that final writedown of the trillions, the economy will correct and be just fine. uh huh.

Or as soon as all the deadbeats get foreclosed on the real estate market will take off!!! Yea.

Or, we are expanding No Child Left Behind. Or, lets give out more money for unemployment benefits, but get that Free Trade Agreement signed so we can outsource the rest of the jobs.

Keith likes the saying "When everyone agrees we have reached bottom, then we will have reached bottom". WE ARE AT THE BOTTOM, just because no one sees it doesn't mean we haven't arrived.

We are broke. Bankrupt. The foreigners are buying our banks, our infrastructure, and our corporations for pennies on the dollar. Our entire country is in foreclosure and the foreigners are short selling us everywhere you look with all of the money WE GAVE THEM, and they gave back to finance our Marketing Wonderland.

So just keep thinking that there is another 70 billion for the f**ng war, and 150 billion in rebates for everyone to go shopping, and we can fix our roads and bridges and rebuild New Orleans just as soon as we get a guy named Obama or a gal named Hillary to put the magic fix on it and voila the pot at the end of the rainbow will be ours.

WE ARE BROKE. YOU KNOW, OUT OF MONEY???? NO MO MONEY!!!! It is done, over, kaput. Stop talking about bailing everyone out. It is denial and make believe and it makes us look stupider than we already are.

There is no magic fix, no magic person, no magic rebate, NO F**NG MAGIC.

You probably want to get them skewers ready Andrew.

San Diego said...

http://www.youwalkaway.com/

LauraVella said...

After the 60 minutes episode about 'mailing in the keys' the herd will stampede and do just that.

Moral Hazard come this spring.

Malcolm said...

@ keith: Once again I apologize in advance for the long post. I want this reader to understand what I am saying.

Anonymous said….

>Of course leave it up to stupid, shallow
>people to equate a person with different
>skin color to meaningful change.

(FYI: if you feel so strongly about things, you should put a name to it like most of us do, instead of anonymous. It’s hard to take someone serious when they insist on staying off the record).

Now, back to the comment at hand…

If you remember the Carter years, and the election of 1980, you would agree with me.

The most meaningful change Reagan brought came simply by his being elected; and long before any of his successful/failed policies.

We had years of Carter telling us that things were much worse than we imagined. We had the film industry focusing on the bad (think of the number of films that focus on how bad the Vietnam vets were treated). We had the hostage crisis, the continued energy crisis, stagflation. The entire country was in a “funk”.

What Reagan did was bring a breath of fresh air. He reminded us that it’s OK to be an American. And even if we still had problems, we turned the page because we remembered that we COULD fix our problems.

This is the same thing that FDR did when he said that we had nothing to fear but fear itself. This is what JFK did when he called for the young generation to step up to the plate.

The economic boom we experienced was a direct result of the optimism that Reagan brought with him. If Carter had been reelected, it would not have happened because we would have been stuck with more of the same.

And this is what Obama could do. He’s a breath of fresh air when we need a breath of fresh air. Our economic problems are real, but they are exasperated by the financial paranoia that comes from knowing that there are no real solutions being sought by most candidates.

If he did nothing other than be elected, he could provide meaningful change. I won’t waste Keith’s blog space going over what I’ve covered before in my own blog, so I will simply direct you to:

http://malcolmrant.blogspot.com/2008/01/democratic-establishment-wants-you-back.html

Anonymous said...

Truth passes through three stages:
(thanks Danny Schecter)

First, it is denied.

Then the people who state it are demonized.

Finally, when it is irrefutable, it is widely accepted, usually with the proviso that everyone knew it all along.

Housing Panic is about finding the truth?

Is time to move into Stage 3.

It is now irrefutable. (It's okay to tell everyone that you knew it all along, because everyone else will be doing the same).

Anonymous said...

Malcolm,

Dude you need to do your research. Obama is nothing more than another puppet of the elite. If anything he would increase the "stimulus package". He was one of the most corrupt politicians in Illinois history.

Obama mania is based on nothing of substance. The man's only creedo is "Change". Change what? He can't even say we will be out of Iraq by 2013, nor has he promised to get government spending under control. He hasn't done ANYTHING. He was elected 2 years ago to the Senate and he has AVOIDED any controversial vote in Congress. Now THAT is leadership!

Get your head out of the clouds and educate yourself. I will be voting for the only candidate that the power corporations fear the most. Ron Paul. The only candidate ignored and trivialized by the monopolistic media corporations. The only candidate willing to dismantle our globalist empire, our globalist free trade shams, and our unfair income taxes. He is a threat to those who hold all the power in this country. We are living in the first 20 years of a new Robber Baron era of America. This isn't 1893, this is 2008 and its time for REAL change...not CHUMP change.

I feel sorry for you. Such a lap dog, licking up the bullshit spoon fed to you by the mass media. If Obama gets elected, I bet you all the money the Fed prints during his Presidency that nothing actually changes.

Malcolm said...

Actually, I voted for Ron Paul already (here in MI). I also coughed up $1000 for his campaign.

My long-time support of Ron Paul well on record.

Of course, I always post under my name too, so it's not hard to trace my opinions.

Personally, I've always had the philosophy that anything worth saying is worth saying ON THE RECORD. But that's just me. :)

Anonymous said...

Blogger Malcolm said...

The economic boom we experienced was a direct result of the optimism that Reagan brought with him. If Carter had been reelected, it would not have happened because we would have been stuck with more of the same.

It appears to me that we have had plenty of optimism over the last 7 years. We have all been on one big, happy,optimistic, fresh air shopping spree. Proud to be Rich on HELOC. Life is a party.

The money is gone. No amount of optimism or shittin in a paper bag is going to bring the wasted money back. For what? Bombing the hell out of the brown people? (Notice how we never bomb white people??) We are fixing to cough up another 70 billion in imaginary money to keep the bombing going for another few months, but they are going to kick us 150 billion in imaginary rebates to go shopping and keep our mouths shut. Bribery works great in America. Until the money is gone.

Try eating your optimism for dinner. See if the guy at the Volvo dealership will take a check of optimism or you can even try slipping Home Depot a check for "fresh air".

Bankrupt, broke, indebted. Call it what it is, and please skip with the magic fresh air optimism. It is not "Morning in America". It is not the Darkness Before the Dawn. It is what it is: Bankrupt.

You wrote:
"If Carter had been reelected, it would not have happened because we would have been stuck with more of the same."

We were not bankrupt during Carter, or Reagan, or Clinton. We are bankrupt now, with no lender of last resort.

It is now irrefutable. (It's okay to tell everyone that you knew it all along, because everyone else will be doing the same). And God knows in America we have to be just like our neighbors.

Anonymous said...

We are not in the fear stage. Denial has passed. Friends of mine who were adamant about the secure nature of housing are now changing their tune. One of my good friends here are work is now putting his house on the market and is planning on renting for the next while before he buys again.

As another poster indicated, that 60 minutes skit will be an eye opener and we will be seeing a MASSIVE wave of people turning in their keys. Get ready for some nice REO deals in about a year or two everyone. :-)

while reagan slept said...

Malcolm said...
"What Reagan did was bring a breath of fresh air. He reminded us that it’s OK to be an American."


He also conditioned us to accept borrowing from future generations to fund extravagant big-ticket defense projects to protect us from a drummed-up Soviet threat.

Let's all repeat the Reagan era mantra:

Deficits Don't Matter!


Now, take a deep breathe and ponder the continuation of his legacy under Bush Corp.

A $10 Trillion National Debt!!

Anonymous said...

If you voted for Ron Paul, why come out touting Obama? Most Ron Paul supporters see right through Obama and are informed enough to know that Obama is a wolf in sheeps clothing.

I have trouble believing you.

~TL in CA
I don't have any accounts to log in with. I am a lurker.

Anonymous said...

"The economic boom we experienced was a direct result of the optimism that Reagan brought with him.

Kieth, are you on crack? It was deregulation of everything, deficit spending to build up the military and changes to the tax code. In case you forgot, who is it that said, "Reagan showed us that deficits don't matter?" And, as for your spirit BS, the release of the hostages 10 minutes after Reagan was sworn in helped as did that Winter Olympics hockey team.

And the thing is, at least back then we still had some semblance of manufacturing.

Anonymous said...

True deficit spending as we know it today did not start until the Reagan years. He slashed taxes upon the ultra rich, and started printing money from that point on to pay for government crap. Clinton expanded and continued that practice and instituted globalism with his various "free" trade agreements. Bush 2 doubled the amount of spending by the government, putting us near bankruptcy. Taxes on the top 10% of Americans have dropped from 90% to just 28%. Us poor dumb bastards pay roughly 33% in taxes...

That is all I have to say. I've been a Republican all my life, but for the life of me I cannot understand how I went through all those years with such a thick layer of wool over my eyes. The only thing that makes sense is the media giants keeping me "informed" of only what they want me to be informed of.

Good riddance.

~TL in CA

Andrew Hac said...

Quote:
"Do Americans have the inner strength to summon a national will? "

Yes, the Americano has plenty of inner strength storing in that gut hanging over the belt. That strength has been accumulated years after years of booze swilling, pizza devouring, bugger chomping, hot dog sucking, fried chicken tearing and it is getting larger and large by the day. Yes, there will come a day soon when that "WILL" the Americano is looking for will be coming from that booze belly gut. A "WIND" breaking of an unimaginable strength and foul stench emanating into the atmosphere, the sky, the water, the land of the Snapper Turtle.

Damn housing bubble.
Damn fat pig.

Anonymous said...

The Federal Reserve, working to combat effects of a serious credit crisis, said Tuesday it had auctioned $30-billion (U.S.) in funds to commercial banks at an interest rate of 3.123 per cent.....

Mr. Bernanke has said that the current auction process will continue for as long as needed to make sure that banks have sufficient reserves. He said the auctions might become a permanent addition to the Fed's “tool box” of strategies it can employ when credit markets have seized up.

http://tinyurl.com/2d4ssx

Nah, everything is gonna be just fine. All you naysayers and doom and gloomers just need to STFU.

Bernanke got a new "tool box" for Xmas.

I smell "fresh air" with overtones of "optimism".

Malcolm said...

Anonymous said….

>Keith are you on crack?

No, that’s me you think is on crack. Not Keith.

TL said (and thank you for putting a name to your comments)…

> We were not bankrupt during
> Carter, or Reagan, or Clinton.

I know some will argue that it started with Johnson, but I think the real debt irresponsibility started with Reagan. The problem now is that we’ve run out of credit, and we’re paying the cost for our spend-spend mentality.

@ all:

Now, I know that what I am saying doesn’t make sense to you. I can accept that. I won’t run off (you’ll still have Malcolm to kick around :) )

But you cannot divorce the psychological aspects. The economic aspects are, of course, critical and massive, but they cannot be solved without psychologically turning the page.

For example, last August’s mini-crash. Why did it happen in August? Why didn’t happened in July or September? It was because it wasn’t til August that the MSM couldn’t avoid recognizing that we’re f**ked. The psychological fear of the downturn caused people to slow down spending, and that exasperated the problem.

As a better example: the price of stock. While much of it has to do with the economic condition of a company, even more (these days) have to do with what the PERCEPTION of the value is. Instead of the price being based on objective facts, the price is based on the psychology of the people who are buying and selling the shares. (just like a home, the “Value” is only determined when you buy or sell).

Now, I’m NOT saying “think you’re successful and you are”. I’m not saying that the fear is what caused the crash. I KNOW that the math has us behind the 8-ball.

What I am saying is that before we turn the page, the people with money (at least those of us who still believe in cash), will have to PSYCHOLOGICALLY believe that the page is turning, that it’s safe to let our money run and play.

THAT is the idea I was trying to convey. If we get more of the same, or if we THINK we have more of the same, nothing is going to change.

Anonymous said...

Well, you can go double or nothing on all the CDO's in the SIV's.

Bond Insurers May Lose AAA Ratings Before They Get Bailout Plan

Jan. 29 (Bloomberg) -- Bond insurers led by MBIA Inc. and Ambac Financial Group Inc. may lose their top AAA ratings before they benefit from any rescue plan.....

The insurers will need about $130 billion to cover the losses and to recapitalize, and the cash will have to come from taxpayers, Independent Strategy said in a statement today.

http://tinyurl.com/2appuf

Lets throw some optimism and fresh air at this shall we?

Anonymous said...

More denial, if you can believe that. More people thinking it's a good time to buy, if you can believe that. More people trying to sell high, even though a 40% reduction in asking prices could help a lot of people, if you can believe that. More misery, heartache, violence, if you can believe that.

...and then, people losing jobs on a massive scale.

Frank@Scottsdale-Sucks.com said...

Next big fun phase will be the massive wave of loan resets this year, particularly in summer.

The MSM will need to stop blaming everything on "subprime" when that happens because all those resets will be hitting people who had good credit but knowingly "bought" more than they could afford anyway.

Frank@Scottsdale-Sucks.com said...

If Obama gets elected, it’s 50/50. If he wins by a landslide, it could jump-start the mentality of the country enough to take on the tough challenges. If he wins by a sliver, it could be rough going.

Are you for real? Have you read Obama's stance on the issues? He's IDENTICAL to Hillary and Edwards. There is absolutely no difference in policy between the three democratic candidates. It doesn't matter which one wins because they're all the same.

Anonymous said...

I think the reality will be in between the doom and gloom predictors and the delusional NAR-type blowhards. Prices in desireable areas will be down 5-10% this year, but far from "crashing." People who have sane fixed-rate mortgages and didn't buy in the boom years will weather the storm just fine.

A mild recession wouldn't be too bad. It means prices for gas will come down a little too.

-RW in CA

Andrew Hac said...

So, after all what had been said and done in the land of the Eagle, the land of the Turkey, the land of the proud, the land of freedom, the land of the obese, the land of Joe6Pack and JaneZinfandel, at last but not least, the land of the Snapper Turtle, is the Americano toasted or not ? When will the Americano economy to be toasted ? Will the Americano economy to be toasted lightly like a marshmallow or throughly sizzling over a bed or red hot charcoal not unlike a grilled snapper turtle ?

And why does not Joe6Pack and JaneZinfandel react to the condition of being toasted ? Are they deaf, dumb, mute, blind, or just arse-kisser to the star spangle flag ?

After all, a flag is a piece of cloth flying on a pole with a piece of string attached to it. What one makes of the flag in term of symbolism will make or break the land of the Turkey. I guess BREAK then since you all voted for that big-ass TURKEY in that TURKEY white-house 8 years in a row.

Pathetic turkey !

"Jeremiah" said...

The housing debacle is truly the first domino that will lead to the downfall of this country. We are headed for third world status.Prophetic revelation is what I rely on to state what I feel. The best financial investment that you can make, at least for the moment, is pure gold(and silver) which you must have physical possession of. DO NOT TRUST IN ANY KIND OF BOND OR STOCK!!!

Anonymous said...

Major, major, major consumer lead slow down. Americans are now waking up to the fact that they borrowed their future, their kids future and probably their grandchildrens future.

Noone will want debt. Cash will be king! Gold is way to expensive for the jewelry market with no sales and gold will also drop.

Biggest change coming is an America with boomers trying to save instead of spend.

borkafatty said...

Cut the interest all they want, it will help the fraudulent markets and mortgage companies in the very short run but the banks and corporations have cut the heart out of the middle class and made homes unaffordable. If people were having a hard time with mortgage rates before, now those that lost homes have ruined credit for the next 7 to 10 years, if not for life. New lending standards require a 20% down for a decent and fair interest rate. Guess what, Americans have blown through their pitiful little savings. Also consider that good paying jobs are still being outsourced along with whole business that generates them. The government continues to reward companies with tax advantage for taking the jobs and manufacturing abroad. When you put all these facts together, you have a housing market that will continue to spiral downward, with prices dropping and a limited number of qualified buyers. Those that had the money to buy or hold on to their house will have to tighten their belts and thus less consumer spending. We have a perfect storm and catch 22 situation. Short version is that the economy will continue to decline. The billions being spent in Iraq for destruction and war does not help. The US debt is massive and foreign investment is growing along with the influence that they can exert on our markets and National Security. Additionally the interest on the US debt is growing exacerbating our ability to borrow or pay down our debt. This only leads to higher interest rates and a lack of confidence in the markets. These problems will wash through the markets like a tidal wave leaving a lot of destruction. The pitiful stimulus package may be just enough short term, to stop the bleeding until Bush can safely escape the mess he has made. Pity the poor SOB that has to clean up all the s*** he has left behind. He or she may end up with lower approval ratings than Bush and it is doubtful they can win a second term. Home prices will have to drop to the level of buying power left in the middle class. At the same time those wanting homes will have to save 20,000 or more for a home or pay a punitive interest rate. That will put one h*** of a strain on consumer spending. With more homes for rent, the rental rates are dropping. That will stress those speculators that had a good enough cushion to survive the first round of foreclosures. They will have to make up the difference between the mortgage payment and the amount they receive in rent. If they have several rentals , it can get costly and we can expect more of those to go under bringing even more losses to the banks and more homes on the market....got popcorn!

Anonymous said...

Market Watch
PAUL B. FARRELL
A mind-blowing machine
In America, land of the bubbles, the next pop will be the biggest

http://tinyurl.com/3d7h47

Since we have a bubble-based economy

Anonymous said...

Excellent comments today keith, your blog gets better and better. Very informative.

Anonymous said...

CHINA BUBBLE...

CHINA CRASH!!

Paul E. Math said...

I don't think we're completely out of denial yet. I was talking to a buddy of mine who's supposedly a smart guy: engineer, mba, works for pwc.

I made the mistake of asking him about his house and he still thinks owning his house is like living rent-free. He thinks that if he adds on a couple rooms to his cape-style home he'll increase the value by a couple hundred k.

I asked if he thought that the low ceilings (7.5 feet) would limit the resale value.

He said "well, it's a cape".

I said "'a rose by any other name...', calling it a 'cape' doesn't make the ceilings any higher; people like low ceilings about as much as they like small windows and cramped bedrooms, which you also have". He then told me I wasn't listening, that I didn't understand that was the architectural style.

I think sellers are perhaps getting into the fear stage but there are probably many homeowners who are still in denial as to what their homes are now worth and what they will be worth when they need to sell in the future.

Angry Monkey said...

Nothing! Nothing is going to happen. The Gov is just going to keep bailing the corrupt out and Im gonna be stuck working my 12 jobs while my food prices go through the roof.

All these retard rejects are going to be bailed out and the hard working Americans are going to be stuck. Illegals are going to get better health care than I do. My taxes are going to go up!

STOP BAILING OUT RETARDS!!!

OC Slacker from 05 Housing Loot said...

Re; Dude you need to do your research. Obama is nothing more than another puppet of the elite.

i believe this as well. I also beleive that the reason he is being supported by the media pundits is because the GOP is planning on using him as a tool to get beaten then we will be stuck with most likely McCain watch him get the GOP nomination. I truly believe in Ron Paul but I don't believe in this rigged and well funded system called corporate media, and this country as a whole votes for stupid reasons like charisma and religion and boogiemen in sleeper cells. Lets face it America is collectively ignorant and apathetic when it comes to non entertainment issues. The media picks who stays in the race duh. WE NEED THE STRONGEST TOUGHEST CANDIDATE THAT CAN BEAT THE GOP AND THE DIRTY TRICKS THEY WILL SELL JOE 6PACK ON. at this point lets just get a candidate who is a real threat to the GOP in there. Look at what they did to Kerry with the swift boat vets and now think of what they will do to Barrak Hussein Obama. The majority of Americans vote based on what they see on TV especially the ads and the talking points.

Anonymous said...

Massive massive drop coming.

Lady Di said...

Stag "lite" inflation first

Roubini Deflation next

We're entering a new Era

Cash will be King

Love,

A cash only customer

Amtex said...

Reagan just told everyone that they could spend and borrow and not worry about it. He gave American's and their politicians the credit card attitude.

Anonymous said...

Malcolm said...

What I am saying is that before we turn the page, the people with money (at least those of us who still believe in cash), will have to PSYCHOLOGICALLY believe that the page is turning, that it’s safe to let our money run and play.

I remember when my son was in middle school, they had a class on self esteem that he was required to take. He was taught in this class that he had intrinsic value because he existed. He should love himself just because he exists. I believe a lot of GenX & Y were raised with this philosophy. They call it unconditional love. We love you because you breathe.

I didn't agree with the teacher, I feel that self accomplishment is what creates self esteem and that a human being must produce some type of accomplishment in order to earn the right to feel good about him/herself. It is not enough to tell yourself that you are a great human when in fact you have accomplished nothing. Telling ourselves that the economy is great is not going to do the trick this time. Unconditional love is a lie and so is living high on debt.

You also wrote:

....PSYCHOLOGICALLY believe that the page is turning, that it’s safe to let our money run and play>>>>

Letting the money run and play is what brought us to this moment of insolvency. When America grabs the money and throws it in the bank (like the Japanese do) at that point we will have moved from the psychological to the real world.

Take That To The Bank.

There is a really good reason why people post anonymously here LOL

Anonymous said...

Malcolm said...

What I am saying is that before we turn the page, the people with money (at least those of us who still believe in cash), will have to PSYCHOLOGICALLY believe that the page is turning, that it’s safe to let our money run and play.

I remember when my son was in middle school, they had a class on self esteem that he was required to take. He was taught in this class that he had intrinsic value because he existed. He should love himself just because he exists. I believe a lot of GenX & Y were raised with this philosophy. They call it unconditional love. We love you because you breathe.

I didn't agree with this then and I don't now. Self accomplishment is what creates self esteem and that a human being must produce some type of accomplishment in order to earn the right to feel good about him/herself. It is not enough to tell yourself that you are a great human when in fact you have accomplished nothing. Telling ourselves that the economy is great is not going to do the trick this time. Unconditional love is a lie and so is living high on debt.

You also wrote:

....PSYCHOLOGICALLY believe that the page is turning, that it’s safe to let our money run and play>>>>

Letting the money run and play is what brought us to this moment of insolvency.

Take That To The Bank.

Anonymous said...

Bond Insurers May Lose AAA Ratings Before They Get Bailout Plan

Jan. 29 (Bloomberg) -- Bond insurers led by MBIA Inc. and Ambac Financial Group Inc. may lose their top AAA ratings before they benefit from any rescue plan.....

The insurers will need about $130 billion to cover the losses and to recapitalize, and the cash will have to come from taxpayers, Independent Strategy said in a statement today.

Why are we getting rebate checks to go shopping when taxpayers are going to pay for AMBAC & MBIA's losses to the tune of $130 billion?????? The rebate checks are for $150 billion???? Why aren't we paying for the insurers to stay solvent instead?

Why are we going shopping til we drop at Best Buy with our free manna from heaven, while the companies that insure our retirements are going bankrupt? Does anyone realize that billions of dollars in our 401k's and retirements are insured by these two? So we are going to take our rebate checks and buy big TV sets while the companies that insure our retirements go broke?

Andrew we need lots more bamboo.

Anonymous said...

Hey Keith!
Check out the link on Patrick.net titled "WANTED- YOUR TOYS!!
It's a great rant on Craig's list that is RIIIGHT up the HP Alley!!

Love it!

http://providence.craigslist.org/wan/554551884.html?ref=patrick.net

Anonymous said...

Credit Card financial mess and massive unemployment.

Uncle Jerry said...

Malcolm-You really don't get it do you? Reagan started this deregulated trickle-down nightmare ponzi scheme that is now collapsing. Then came Bush I, Clinton, then Bush II and pice by piece they have destroyed everything that was good about this country while everybody got rich. Well at least the top One Percent got richer and the rest of us got to use easy credit to pretent we were rich.

Well the game's over. The easy credit is gone and the bills are coming due. Ronnie turned this country into a fantasy land in the worst possible sense of the term.

The only thing James Carter did wrong as president was that he would not lie to himself or to the American People.

Times were tough and America had a choice to make and we chose fantasy land over doing the hard work that was needed to build a vibrant and sustainable economy.

Now it really is "morning in America" and it is time for everybody to wake up from the empty dream that has become a nightmare.

Uncle Jerry said...

Apologies to Malcolm. Sent my comments in before reading a later post by you re: Reagan sowing the seeds of the mess we are currently in.

But I do have to say that Reagan's Pollyanna optimism is part and parcel or this mess also. Obama's promises of change are backed only by his "audacious" hope.

The page is turning for America but this time it is not optimism but a big ole dope slap from reality that is going to do that.


Whoever the next president is does not really matter because no matter who set this crash in motion the blame is going to fall squarly on the shoulders of who ever happens to be living at 2000 Pennsylvania Ave when the crash finally does hit.

Might be a good idea for Obama to sit this one out and run again in 2012. I think we are all going to need a big old helping of hope by then. He's a young man with a bright future I would hate to see him throw it all away for four very unpleasent years in the White House. Also if Obama is elected and if the economy does finally collapse on his watch it will be another 200 years before America elects a black president because everybody will be saying "yeah we tried that once and it didn't turn out very well.

So let's all go out and support Willard Romney and the we can all get past this lie that pro-business Republicans make good world leaders.

Anonymous said...

What's coming next? The ticket taker.

UPTHECREEK said...

GOOGLE will implode..and they will be exposed for the Ten Billion in insider sales over the last 18 months...10 BILLION.....TALK ABOUT A HOUSE OF CARDS...

www.DollarPANIC.blogspot.com said...

.
.

It's been quite the ride.

So what do you think is coming next?

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

A credit default swap crisis

Word on the street is that the banks could be forced to write-off more than $250 Billion in CDS losses between now and June '08.

YES, the FED IS PUMPING BILLIONS in low interest loans to the major banks... none of this money is going to ever reach Main Street. The FEDs money is just going to shore up bank reserves, to help prevent big bank failures.

On Main Street, cash is becoming KING as household liquidity is sucked dry by ever increasing debt-service payments combined with a consumer and business credit crunch.

Ruprecht said...

A falling satellite will crash into Vegas and wipe out all their foreclosure woes.

http://tinyurl.com/2dfxrz

Anonymous said...

If things really get bad (collapse through depression or hyperinflation), money, your job, and--yes even--gold will be least of your concerns.

Crime and lawless bands of starving people will be your primary concern.

You will need firearms, ammo, canned food, bottled water, etc. etc.