"The government's efforts will not create a bottom for financial stocks because of the fundamental problem in this country: People carry too much debt against homes that are sinking in value, homes they really couldn't afford in the first place and homes that have become all the more burdensome due to the inflation that's ravaging their paychecks."
- Bill Fleckenstein, July 2008 column "The Repugnant Bailout Nation"
July 26, 2008
HousingPANIC Quote of the Day
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13 comments:
Anyone receiving a new mortgage from the government will likely be stretching themselves just to afford that. Plus, they have to share future gains with the government. The only reason these dopes got stunt man mortgages is because they thought buying a home would make them rich.
IMF says US home prices still 20% overvalued...
http://uk.reuters.com/article/marketsNewsUS/idUKN2542244220080725
Numbers racket:
Why the economy is worse than we know
http://harpers.org/archive/2008/05/0082023
or
http://tinyurl.com/57rfse
"Only Barack Obama and Hillary Clinton have received more Bank of America money than Dodd during the current election cycle."
-Examiner
http://tinyurl.com/64r2do
Vote Libertarian!
I guess one day Americans will be like boatpeople to some distant shore where the people didn't let the government squash them or we wake up, speak up and get up.
It appeas inevitable that the housing bailout will pass today and go to the President early next week.
Senator Jim DeMint has slowed the bill by requesting a commitment from his colleagues that sometime in the future, they would hold a vote on barring Fannie and Freddie from lobbying.
Senator McCain, who wasn't present for the cloture vote, also called for an end to their multimillion-dollar lobbying campaign. More importantly, he called for "making them [Fannie and Freddie] go away," as in, be no more.
USA; where people
dare-to-be-stooopiidd ….
Pg 15 in "Harvest of Rage"(Dyer,1997):
" The rate of inflation [in the 70's] was
running several percent above interest rates,
so banks and government lenders, such as
the Farm Home Administration (FmHA),
were encouraging farmers to borrow as
much money as possible to buy farmland.
… the price of farmland skyrocketed as
farmers tried to outbid each other … .
Lenders would actually call farmers and
ask them if they could take more money.
…Many lenders at the time were getting
paid bonuses based on how much money
they could loan. "
" But that all changed in 1979. Fed Chairman
Volcker decided that inflation was out of control.
…raising interest rates to unheard-of heights.
… [farm]values collapsed at the
same time the interest rates on
the farmer's loans climbed out
of sight. The men and women who
had listened to the experts, and
had done exactly as they were
told, lost everything.
Keith
You are not allowed to leave without telling us that you are going, where you will be and when you're coming back. I was worried about you like a father worries about a son who stays out too long. I was in a panic about losing Housing Panic. Ok, first step. Admit that I am a Housing Panic aholic and my life has become unmanageable.
Only a few authors and writers seem to "get it" that 50% or better of Americans are living an 80K a year lifestyle on a 60K (if that) salary, and have been making up the difference for 20 years with mass credit, low payments, and finally the housing ATM.
The economy changed from a high-pay manufacturing economy to a high-tech/service economy, where 20% do very well in the global economy (think Google and Microsoft), and 80% live in the service economy (think Carpetland and Home Depot jobs). Americans can't believe that they will not be better off than their parents, so they "lease a lifestyle" - now the banks need their payments, and people don't have the money. . .we have become a nation of deadbeats heading for the Cash American (tm) pawn shop.
West Coast Willie said: "You are not allowed to leave without telling us that you are going, where you will be and when you're coming back. I was worried about you like a father worries about a son who stays out too long. I was in a panic about losing Housing Panic. Ok, first step. Admit that I am a Housing Panic aholic and my life has become unmanageable."
I was worried about Keith too. I second this motion!
Here's a tidbit lost in all the "news" concerning the Indymac Bank failure -- The FDIC has decided to halt all foreclosure actions against customers with mortgages in default!
That's right, they are letting them off the hook and my guess is FDIC money will be used to bail out these assholes.
Bill Fleckenstein is certainly no "Frank from Scottsdale Sucks".
Now Frank really knows his stuff.
Fleck is one of the few in the media who calls things as they really are. Most of the rest in the "financial press" are nothing but whores, making up stories to please their corporate pimps.
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