tag:blogger.com,1999:blog-18675105.post4789882261096149972..comments2023-12-30T10:06:37.450+00:00Comments on HousingPANIC - The Housing Bubble Blog with an Attitude Problem, 2005 - 2008: BUBBLETALK - new thread to talk about the housing crash, mortgage meltdown, dollar debacle and realtor faminebloggerhttp://www.blogger.com/profile/06585266242070350399noreply@blogger.comBlogger348125tag:blogger.com,1999:blog-18675105.post-89102729290322077842007-10-29T17:28:00.000+00:002007-10-29T17:28:00.000+00:00Does anyone believe that there will be a construct...Does anyone believe that there will be a construction boom in San Diego after the wild fires? Maybe Miami needs what Miami realtors are praying for. A category 5 monster storm that will level the inventory. Oh well, we all have been told that it's different in South Beach.<BR/><BR/>Allow me to share an excerpt of a letter I received a few days ago.<BR/><BR/>“Dear …. . residents:<BR/><BR/>As many of you know we are facing very challenging times in the Florida Condominium marketplace. New building development has come to a standstill and Associations throughout the area are seeing an all time high in collection issues. As of October 22, 2007, the Association is owed $290,550 in late maintenance fees, special assessments and other charges. This is an increase of 270% over the same time last year. As a result, management and the board of directors are faced with many challenges including the current bad debt, the likelihood of future additional bad debt and fewer revenues from maintenance fees. Therefore, the 2008 budget increases the maintenance by 13% and contemplates a special assessment of $400,000.”<BR/><BR/>(I am omitting a bunch of stuff about hurricane insurance, etc. and how hard the board has worked to get the increase from 29% to 13%)<BR/><BR/>Here comes the kicker under solutions how to deal with the problem:<BR/><BR/>“More control on leasing – the Associations attorney has created an addendum that will be included with all leases that requires the owner and the renter to sign. This addendum states that if the owner becomes delinquent, the renter will be responsible for paying the maintenance fee to the Association.”<BR/><BR/>Desperate times do require desperate measures and I think the Board of Directors and the Association are going to be experiencing a lot more suffering to come.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-53027763487202801052007-10-29T16:47:00.000+00:002007-10-29T16:47:00.000+00:00FLASH:Man commits suicide during standoff with pol...FLASH:<BR/><BR/>Man commits suicide during standoff with police who were serving eviction notice on his forclosed house.<BR/><BR/>http://www.chron.com/disp/story.mpl/front/5244051.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-15346313586517547292007-10-29T14:11:00.000+00:002007-10-29T14:11:00.000+00:00http://tinyurl.com/2hnsobGreat SeekingAlpha articl...http://tinyurl.com/2hnsob<BR/><BR/>Great SeekingAlpha article on Countrywide.gregorywhttps://www.blogger.com/profile/13900940292043774887noreply@blogger.comtag:blogger.com,1999:blog-18675105.post-39503965524990722832007-10-29T11:45:00.000+00:002007-10-29T11:45:00.000+00:00From NY Magazine. Interview with Pete Schiff and h...From NY Magazine. Interview with Pete Schiff and his description of the five threats to our economy. (sorry, tinyurl must be down, cannot access)<BR/><BR/>http://nymag.com/guides/money/2007/39952/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-83751938082287120572007-10-29T07:10:00.000+00:002007-10-29T07:10:00.000+00:00If the words "United States housing bubble" is in ...If the words "United States housing bubble" is in wikipedia does that mean the housing bubble exist.<BR/><BR/>http://en.wikipedia.org/wiki/<BR/>United_States_housing_bubble<BR/><BR/>The United States housing bubble is the economic bubble in many parts of the U.S. housing market that began roughly in 2001, especially in populous areas such as California, Florida, New York, the suburbs of Chicago and Detroit in the Midwest, the BosWash megalopolis, and the Southwest markets.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-43456075893562078762007-10-29T06:35:00.000+00:002007-10-29T06:35:00.000+00:00In the End it all points back to the reckless crea...In the End it all points back to the reckless creation of money and the Inflation that will result from it.<BR/><BR/>http://archive.gulfnews.com/<BR/>articles/07/10/28/10163264.html<BR/><BR/>Titanic vs the Goldilocks scenario<BR/><BR/>Is the world economy a sinking ship? Or will this current storm produce a Goldilocks scenario, if so, where are the three bears offering free porridge and a bed for the world economy?<BR/><BR/>The likely fall-guys according to Delins would be "the financial innovators and the central banks that allowed the innovators to create such a destructive and infectious scenario".<BR/><BR/>"The Titanic-scenario trigger would be the realisation that the current credit crisis is an infection, and more widespread and deep than anticipated. <BR/><BR/>Banks would have to change the way they lend".<BR/><BR/>"We have to put the current status into perspective", says Delins. "This is probably a three out of five for panic; where October 1987 was a four; and 1929 was a five". As this space covered last week, buying equities at the nadir of the 1987 crash would have reaped rich returns by December of the following year.<BR/><BR/>"The Goldilocks view" says Delins, is one that would interpret current asset pricing as "normal re-adjustment, with losses being sustainable". Downward volatility rather than serious downward volatility.<BR/><BR/>"You would be overweight on emerging markets, you would probably prefer Europe to the US, and you might expect Japan to do better than it has up until now", says Delins for those who think the equity cup is half full.<BR/><BR/>Secondly, "commodities would become an opportunity, especially base metals, energy and precious metals", although the latter category gets the added endorsement of "in fact, the precious metals story works well in both the Titanic and Goldilocks scenarios", says Delins.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-42773702971933043122007-10-29T06:14:00.000+00:002007-10-29T06:14:00.000+00:00Who does the SIV bail out really serve.http://blog...Who does the SIV bail out really serve.<BR/><BR/>http://blog.mises.org/<BR/>archives/007363.asp<BR/><BR/>Remember that Citigroup, Bank of America Corp. and JPMorgan Chase & Co. have formed a superfund to bail out troubled structured investment vehicles (SIV). The US Treasury Department and Henry Paulson "back" this plan. <BR/><BR/>What it amounts to is another move on the part of the Wall Street-government partnership to garner market "confidence," salvage credit markets, and bail out the banks. Heck, even Greenspan has conveniently warned against "propping up" the market.<BR/><BR/>Warren Buffett opposing the bailout.<BR/><BR/>Why was Buffett in South Korea? He was visiting a company in which Berkshire Hathaway bought a large stake. <BR/><BR/>Buffett knows the dollar is toast and thus is very negative on the dollar. <BR/><BR/>He wants earnings and dividends in foreign currencies.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-91018340989234997082007-10-29T06:02:00.000+00:002007-10-29T06:02:00.000+00:00Shouldn't speculators and hedge funds reap the re...Shouldn't speculators and hedge funds reap the rewards of their risk taking.<BR/><BR/>Remember boys and girls Uncle Benny hates the poor.<BR/><BR/>http://www.chinapost.com.tw/<BR/>business/2007/10/29/128682/<BR/>Luxury%2Dgoods.htm<BR/><BR/>Luxury goods industry still a playground for private equity<BR/><BR/>The credit crunch has failed to put the squeeze on private equity's interest in luxury goods, said financiers, deal advisers and luxury goods executives at the World Luxury Congress last week.<BR/><BR/>Moreover, such is the demand among funds to enter the high margin, high growth sector they are considering a shift away from their traditional buyout strategy of acquiring control and may instead opt for minority stakes just to gain a foothold.<BR/><BR/>"Private equity is here, it is here to stay and it is going to buy up more luxury companies," KPMG Partner and UK head of consumer markets David McCorquodale told delegates.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-84808820826649776902007-10-29T05:55:00.000+00:002007-10-29T05:55:00.000+00:00Why add to a losing position when the US Dollar is...Why add to a losing position when the US Dollar is going down.<BR/><BR/>Aren't Hedge Funds currently buying Collateralized debt obligations to make up their lost in US Subprime market.<BR/><BR/>Isn't Uncle Benny on auto pilot.<BR/><BR/>http://today.reuters.com/news/<BR/>articleinvesting.aspx?type=<BR/>bondsNews&storyID=2007-10-<BR/>29T050949Z_01_T354614_RTRIDST_<BR/>0_MUFG-SUBPRIME-UPDATE-2.XML<BR/><BR/>Japan's largest bank, said on Monday it would have to write down the value of its subprime-related investments by as much as 30 billion yen ($260 million), or six times more than previously announced.<BR/><BR/>The write-down, combined with losses at credit card unit Mitsubishi UFJ Nicos Co Ltd (8583.T: Quote, NEWS , Research), would likely cause the bank to fall 25 percent short of its full-year profit forecast of 800 billion yen, Japanese newspaper Mainichi Shimbun said on Sunday.<BR/><BR/>"There has been a report concerning our forecast, but nothing has been decided at present," MUFG spokesman Yusuke Fukui said.<BR/><BR/>The bank said appraisal losses related to the subprime mortgage market had likely ballooned to 20 to 30 billion yen as of the end of September, up from the 5 billion yen the group announced in August.<BR/><BR/>MUFG becomes the latest of several Tokyo financial institutions to announce greater-than-expected losses from subprime investments in the last week.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-36040381582157935142007-10-29T05:49:00.000+00:002007-10-29T05:49:00.000+00:00Is it better to take a small lost now then to take...Is it better to take a small lost now then to take a bigger lost in the future.<BR/><BR/>Is Blackstone Group trying to stick it to their foreign investors.<BR/><BR/>Did Blackstone Group get their play busted up by their foreign investors.<BR/><BR/>http://www.ft.com/cms/s/0/<BR/>f114f1e4-85bf-11dc-8170-<BR/>0000779fd2ac.html?nclick_check=1<BR/><BR/>The likelihood of the Blackstone Group abandoning an agreement to purchase a North American mortgage company is growing, despite the private equity firm's reputation for never walking away from a deal, according to people familiar with the matter.<BR/><BR/>The plan was for Blackstone and a unit of General Electric to pay $1.8bn (£880m) for the mortgage and fleet lease business of PHH, with Blackstone taking the mortgage business and GE the vehicle leasing business.<BR/><BR/>PHH is not in the subprime mortgage business, but the value of its mortgages have deteriorated since September, when PHH announced there could be a $750m shortfall in the debt financing from banks led by JPMorgan and Lehman Brothers.<BR/><BR/>If Blackstone chooses to walk away from the deal and is unable to blame the banks, it would be liable to pay $50mAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-48440342732228861182007-10-29T05:45:00.000+00:002007-10-29T05:45:00.000+00:00http://www.chron.com/disp/story.mpl/front/5244051....http://www.chron.com/disp/story.mpl/front/5244051.html<BR/><BR/>Chemist has standoff against police and then kills himself instead of letting his house foreclose.Out at the peakhttps://www.blogger.com/profile/10855394670202295976noreply@blogger.comtag:blogger.com,1999:blog-18675105.post-29231601538682584722007-10-29T05:41:00.000+00:002007-10-29T05:41:00.000+00:00Why are speculators and hedge funds still adding o...Why are speculators and hedge funds still adding on to a losing posing. <BR/><BR/>http://www.theaustralian.news.com.<BR/>au/story/0,25197,22664579-643,00.<BR/>html<BR/><BR/>THE powerful American financial services group GMAC, half-owned by the car giant General Motors, is to spearhead a rescue bid for Britain's stricken mortgage bank Northern Rock.<BR/><BR/>GMAC is to play a pivotal role in the bid being put together by Cerberus, the secretive New York private-equity house.<BR/><BR/>Cerberus, which owns a controlling 51 per cent stake in GMAC, is one of three bidders now doing due diligence on Northern Rock’s books, alongside Virgin and JC Flowers.<BR/><BR/>Up to now GMAC’s involvement in the Cerberus proposal has been kept under wraps.<BR/><BR/>GMAC certainly has the fire-power to help finance the deal. At the end of its last financial year the group held more than $US287 billion ($A312 billion) in assets and earned net income of $US2.1 billion on net revenue of $US18.2 billion.<BR/><BR/>The business was formed 88 years ago to finance car dealer-ships, but it has since evolved into a bank, insurance company and lender for tens of billions of dollars’ worth of car, home and college loans.<BR/><BR/>Cerberus, which has built a reputation for buying distressed assets, bought its stake in GMAC last year for $US14 billion.<BR/><BR/>It has since sold some of the equity to powerful hedge funds, including Gabriel Capital, Seneca Capital and Durham Asset Management. They also have a seat on GMAC’s board and are keen to grow the business and make it less dependent on General Motors.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-36894998065813621672007-10-29T05:32:00.000+00:002007-10-29T05:32:00.000+00:00Why is Asian Market going up.Excess Global Liquidi...Why is Asian Market going up.<BR/><BR/>Excess Global Liquidity has to go somewhere. <BR/><BR/>Speculators are beating Hedge Funds to their short YEN position and buy Asian markets and gold future because Uncle Benny is on auto pilot.<BR/><BR/>http://www.financialexpress.com/<BR/>news/Spooking-investors/233387/<BR/>2<BR/><BR/>When risky borrowers find it easy to get credit, they are less likely to go bust, which makes them appear less risky. And when lots of investors buy illiquid assets, trading volumes increase, making the assets seem more liquid.<BR/><BR/>This trend can be self-reinforcing. <BR/><BR/>Borrowing to invest in higher-yielding or risky assets is one form of the ‘carry trade’. This was the strategy of obscure bodies known as structured investment vehicles (SIVs) and conduits. <BR/><BR/>They borrowed short-term and invested the proceeds at a higher yield, often in complex products linked to bundles of loans. The margin was their profit. Such assets offered an excess return to compensate investors for their illiquidity.<BR/><BR/>Both high yields and illiquid assets are also attractive to hedge funds, which have become the rising powers of the fund-management industry. <BR/><BR/>Because of the high fees they charge, hedge funds need to make big gross returns to deliver decent net returns to their clients.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-46982944565979190642007-10-29T05:14:00.000+00:002007-10-29T05:14:00.000+00:00Another 1,000 points day for the Hang Seng. That ...Another 1,000 points day for the Hang Seng. That 1,086.75 points to be more exact.<BR/><BR/>Excess Global Liquidity is coming back in a big way.<BR/><BR/>If BOJ can not raise rate then flow of funds from "YEN CARRY TRADE" has to go somewhere.<BR/><BR/>US Dollar Index down last trade at 76.868 and Crude Oil up last trade at 93.15 <BR/><BR/>http://www.marketwatch.com/news/<BR/>story/hong-kong-leads-record-run/<BR/>story.aspx?guid=%7BF6B3BF33-8C00-<BR/>491C-AC03-1BF5AD38EC68%7D<BR/><BR/>Asian markets continued to rally Monday, with indexes in Hong Kong, Seoul, Kuala Lumpur and Jakarta touching record highs while most other markets rose sharply on fund flows into the region.<BR/><BR/>The Hang Seng Index soared to a record high of 31,491.41 during the session. <BR/><BR/>South Korea's Kospi climbed to an intraday record at 2,066.23<BR/><BR/>Indonesia's Jakarta Composite rose to a record high of 2,669.52<BR/><BR/>Malaysia's KLSE Composite climbed to a record 1,411.19 <BR/><BR/>Elsewhere, Australia's S&P/ASX 200 added 1.1% to 6,773.80<BR/><BR/>Singapore's Straits Times Index rose 0.8% to 3,800.41, <BR/><BR/>China's Shanghai Composite advanced 2.4% to 5,725.42 <BR/><BR/>Taiwan's Weighted index climbed 1.8% to 9,807.78.<BR/><BR/>In Tokyo, the Nikkei 225 average rose 1.5% to 16,753.06Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-18639745316898578842007-10-29T00:41:00.000+00:002007-10-29T00:41:00.000+00:00You know what the market is telling you Uncle Benn...You know what the market is telling you Uncle Benny, but you are too afraid to do the right thing of getting rate back up to 5.25%.<BR/><BR/>So lower interest rate to zero, and make the markets happy.<BR/><BR/>Follow the path of BOJ, but just remember all those years of the GREAT DEPRESSION that you studied will come back to haunt you.<BR/><BR/>There can not be a GREAT DEPRESSION with the super collisions of INFLATIONARY Forces.<BR/><BR/>Now watch as you plant the seed of those INFLATIONARY Forces. <BR/><BR/>http://www.stockhouse.ca/<BR/>MediaScan/news.asp?newsid=<BR/>9451284<BR/><BR/>Treasury prices ended firmly down Friday and the yield curve steepened, with the market marching in virtual lockstep with equities in a topsy-turvy session.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-73415766339382770492007-10-29T00:20:00.000+00:002007-10-29T00:20:00.000+00:00Come on Uncle Benny lower interest rate to zero th...Come on Uncle Benny lower interest rate to zero there is noting to worry about.<BR/><BR/>The "Super Cycle" could last 100 years<BR/><BR/>http://business.timesonline.co.uk/<BR/>tol/business/money/investment/<BR/>article2752253.ece<BR/><BR/>ONLY a handful of managers have succeeded in gaining entry to the 200% club, and over the next few weeks we will be talking to them to glean the secrets of their success and their views on the market.<BR/><BR/>To join the elite group, managers must have delivered returns of more than 200% over the past five years according to data firm Citywire. Where they run more than one fund, their average must be more than 200%.<BR/><BR/>First up is Ian Henderson of JP Morgan Asset Management, with an average of 261%. His £1.4 billion Natural Resources fund is up an astonishing 500% over the past five years, according to Citywire, and is the best performer out of about 2,000 funds over that period. His Global Financials fund has also more than doubled investors’ money.<BR/><BR/>Henderson is a City blue-blood. His great-grandfather, Lord Faringdon, founded Henderson Administration, later Henderson Global Investors; the family also set up stockbroker Cazenove. <BR/><BR/>“It’s like coming from an acting family; it’s natural to follow the line. I was investing from a very early age,” he said.<BR/><BR/>He firmly believes that the world is only at the start of a “super cycle” that could see commodity prices trend upwards for, he says, “100 years, maybe even 150”.<BR/><BR/>Unsurprising for the manager of a commodities fund, perhaps – except that he has been investing in the sector since starting in the City in the 1970s, and he took over the reins of the JPM Natural Resources fund, which has been running since 1965, in 1992, when commodities were deeply unfashionable. We talk to him about the outlook for the sector:<BR/><BR/>Why did you want to run a commodities fund, especially in the 1990s?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-74378517912163030202007-10-29T00:16:00.000+00:002007-10-29T00:16:00.000+00:00Honestly, this is what is going on in my mind: htt...Honestly, this is what is going on in my mind: <BR/><BR/>http://youtube.com/watch?v=t8xufsr2logAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-83604075361513072832007-10-29T00:15:00.000+00:002007-10-29T00:15:00.000+00:00Uncle Benny importers are not worry about a weaker...Uncle Benny importers are not worry about a weaker US Dollar so how about lowering interest rate to zero.<BR/><BR/>http://www.pittsburghlive.com/x/<BR/>pittsburghtrib/business<BR/>/s_534960.html<BR/><BR/>As dollar grows frail, importers not worried -- yet<BR/><BR/>Now, the greenback is worth a little less than the Canadian dollar (called "loonies" because the coins are stamped with a loon). But the currency exchange rate is hardly "changing anybody's shopping habits," Peck said.<BR/><BR/>Why haven't foreign growers and manufacturers of goods bound for America simply had consumers shell out more U.S. dollars? They don't want to lose a share of this nation's big, ravenous consumer market.<BR/><BR/>"BMW, Audi and Porsche all subsidize (sales) somewhat to keep the price of their cars competitive with the rest of the market over here," said Joe Scarfone, general manager of Sewickley Car Store, which sells such luxury imports.<BR/><BR/>The three German automakers sell their cars to distributors who pay in euros, the currency both parties use. But once the vehicle reaches U.S. shores, the importer or broker or dealer usually is paying in U.S. dollars. <BR/><BR/>Foreign automakers in recent years have set up plants in the states for that reason, so they don't have to pay extra dollars to import their vehicles into this market. BMW of North America, for instance, makes many of its BMW X-5 sport utility vehicles in Spartanburg, S.C.<BR/><BR/>"So, we haven't had to raise prices much," Scarfone said. "But they can't hold the line forever. (Imported cars) will become more expensive over time, if the dollar keeps eroding."Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-48296102712411769952007-10-29T00:10:00.000+00:002007-10-29T00:10:00.000+00:00The economy has fallen on hard time Uncle Benny, y...The economy has fallen on hard time Uncle Benny, you better lower interest rate to zero.<BR/><BR/>While American companies give free perks to their employees, OPEC stays on the US Dollar peg to pay for it. <BR/><BR/>http://www.sun-sentinel.com/<BR/>business/sfl-flzperks1028nboct28,<BR/>0,4823406.story<BR/><BR/>Perks like this cropped up during the high-tech heyday in the 1990s, when companies were competing for the same talent<BR/><BR/>Memorial Healthcare System's employees can get an oil change and their clothes dry-cleaned without leaving work. <BR/><BR/>General Mills workers can skip traffic and long lines when they mail packages or get jewelry repaired. <BR/><BR/>And Ernst & Young staffers need only pick up a phone to have someone plan their vacation or research nursing homes for an elderly parent.<BR/><BR/>These workplaces are part of a growing number that are embellishing their benefits packages with "concierge services" — everything from flower deliveries and car detailing to restaurant reservations and clothes alterations.<BR/><BR/>Perhaps no company pampers its employees as much as Internet search leader Google Inc. <BR/><BR/>The Mountain View, Calif.-based company offers a diverse menu of perquisites that include three free meals a day, plus other on-site conveniences like car washes, oil changes, massages, haircuts, dry cleaning, child care and medical care. <BR/><BR/>The employees have to pay for some services while Google subsidizes others.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-80981186929803073762007-10-29T00:00:00.000+00:002007-10-29T00:00:00.000+00:00So why is Kirk Kerkorian investing in a commodity ...So why is Kirk Kerkorian investing in a commodity play. <BR/><BR/>What does Kirk Kerkorian see that other do not.<BR/><BR/>Could it be that commodity is next in play on a weakening US Dollar.<BR/><BR/>Is it time to start gathering you nuts.<BR/><BR/>Will the next free run up be provided by Uncle Benny.<BR/><BR/>http://www.nytimes.com/2007/10/27/<BR/>business/27offer.html?ref=<BR/>business<BR/><BR/>Kerkorian to Offer $1.4 Billion for 16% of Tesoro, an Oil Refiner<BR/><BR/>Tracinda, the company controlled by Kirk Kerkorian, plans a $1.4 billion tender offer to acquire a 16 percent stake in Tesoro, a United States refiner whose profit jumped tenfold in the last four years as gasoline demand and prices climbed.<BR/><BR/>The offer is $64 each for 21.9 million shares of Tesoro, which is based in San Antonio, Tracinda said. The price is 12 percent higher than yesterday’s close. Tesoro had its biggest share gain in almost five years.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-45781094787487329752007-10-28T23:33:00.000+00:002007-10-28T23:33:00.000+00:00It is like the squirrels who try to gather the nut...It is like the squirrels who try to gather the nuts before the great winter storm.<BR/><BR/>Most people do not see the storm coming yet, but speculators and hedge funds were the first to see it. <BR/><BR/>All speculators and hedge funds are doing when to do "YEN CARRY TRADE" are gathering all of the money that the governments are providing them before the big storm.<BR/><BR/>It is the two fundamental law of economic. "FEAR AND GREED" and "THE PATH OF LESS RESISTANCE"<BR/><BR/>Just remember, before a GREAT DEPRESSION can happen there has to be a great collision of many inflationary bubbles.<BR/><BR/>The seeds of the great collision is forming step by step as it is Uncle Benny turn to weaken the US Dollar to control the unwinding of the "YEN CARRY TRADE"<BR/><BR/>In order to do so he must low interest rate without colliding into differential that has created "YEN CURRENCY TRADE" <BR/><BR/>But the GREED of speculators and hedge funds will get in the way of Uncle Benny FEAR.<BR/><BR/>So it is it time for "YEN CARRY TRADE" to re-awaken providing the EXCESS GLOBAL LIQUIDITY to drive up equities and commodities markets around.<BR/><BR/>So lower the interest rate to zero, Uncle Benny let finish this end game.<BR/><BR/>http://paper-money.blogspot.com/<BR/>2007/10/housing-decline-spillin-<BR/>over-on.html#links<BR/><BR/>Economics, or the understanding of money, is one of the fundamental skills that are essential for any citizen who is to aspire to freedom.<BR/><BR/>Once the public understands money, the manipulative power of government is greatly reduced.<BR/><BR/>Money is objects which people tend to aspire to; just as is dinner, a coat, a car or a fancy bauble. <BR/><BR/>Governments change the amount of money available according to their own purposes.<BR/><BR/>Any person who sets up to produce more money, governments label ‘forgers’, then attack those people viciously.<BR/><BR/>However, the real forgers are the governments. They produce more money at will and with that money, they buy goods for the mere price of the printed paper or an edict to their controlled banks.<BR/><BR/>The paper they issue has no intrinsic value beyond the paper upon which it is printed.<BR/><BR/>Despite myths to the contrary, there is no good reason why any person should not produce a more reliable money backed by gold or by a basket of commodities.<BR/><BR/>The only factor standing in the way of such honest money is the power of the state, a power that the state is most reluctant to yield.<BR/><BR/>The reality of inflation is that governments steal money from their citizens with absolutely no intention of repaying that money.<BR/><BR/>They can do this to a great extent because most people cannot add up and because governments can project draconian force.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-2394609069350487762007-10-28T23:16:00.000+00:002007-10-28T23:16:00.000+00:00If the US Federal Reserve created the money to f...If the US Federal Reserve created the money to finance the housing run up from 2001-04, then who created the finance from 2005 to late 2006.<BR/><BR/>Of course loans were sold to Wall Street, but Wall Street do not create money.<BR/><BR/>Forgery of money US or any other country is against the law.<BR/><BR/>Is it not through "YEN CARRY TRADE" that Wall Street were able to get this money thanks to BOJ.<BR/><BR/>http://seekingalpha.com/article/<BR/>51163-where-was-the-bubble-houses<BR/>-rates-or-credit?source=feed<BR/><BR/>House prices normally fluctuate in response to interest rate changes due to how they are financed. <BR/><BR/>But this only explains some of the pricing run up from 2001-04. It does not explain the next phase of price increases. <BR/><BR/>To do that, we have to understand how everyone in the lending community got so drunk on securitization they simply abandoned their traditional risk metrics and repayment concerns.<BR/><BR/>The assumption appeared to be that lenders could simply sell the mortgages to Wall Street to be securitized, without worries about delinquencies, defaults and foreclosures.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-68961264820472373992007-10-28T21:45:00.000+00:002007-10-28T21:45:00.000+00:00Is it true, even if OPEC opens up the pumps there ...Is it true, even if OPEC opens up the pumps there is no way OPEC can match the speed at which speculators can drive up oil price. <BR/><BR/>http://english.daralhayat.com/<BR/>business/10-2007/<BR/>Article-20071028-e676e62b-c0a8<BR/>-10ed-0004-6136f3cd0252/story.html<BR/><BR/>There are a number of reasons behind the rapid increase in oil prices. Some people say that the reason is OPEC members' failure to take the initiative to raise production to achieve the required balance between supply and demand in international markets. <BR/><BR/>In fact, there is no actual shortfall in markets; the current anxiety is due to the fear of a surprise interruption in future supplies, for political, climatic or industrial reasons. <BR/><BR/>The commercial oil reserve, especially in western industrial industries, stands at the average levels it has reached over the last five years. <BR/><BR/>The criticisms of OPEC by the International Energy Agency can be summarized as follows: OPEC states don't want to increase production enough to enable western industrial states to compensate for what has been drawn down from the commercial reserve in past months.<BR/><BR/>For its part, OPEC criticizes the role of speculators in oil markets, since their daily investments are estimated at tens of billions of dollars, while the scope of oil transactions that they deal with on a daily basis is dozens of times bigger than OPEC's level of production, and thus, their big impact and influence on oil markets are not matched by any significant responsibility for developing the industry itself.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-7781141728365432502007-10-28T21:33:00.000+00:002007-10-28T21:33:00.000+00:00With Canadian Dollar going higher wouldn't Canadia...With Canadian Dollar going higher wouldn't Canadian oil be higher also.<BR/><BR/>http://630ched.com/news/news.cfm?dir<BR/>=business&file=b102804A&n=3<BR/><BR/>The Canadian dollar could be set to blow through its all-time high this week on a combination of U.S. dollar weakness, high oil prices and a strong economy.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-68314594792537022007-10-28T21:30:00.000+00:002007-10-28T21:30:00.000+00:00Did a Bernanke's PUT get leaked out to the Golf co...Did a Bernanke's PUT get leaked out to the Golf countries.<BR/><BR/>If oil is sold in US Dollar and the US Dollar were to get weaker then shouldn't Crude Oil price go up.<BR/><BR/>If the consumers do not have a problem paying for higher gasoline price until $10.00/gallon, then<BR/>should gasoline future not be at least $4.00/gallon by year end.<BR/><BR/>http://www.azerbaijannews.net/<BR/>story/294787<BR/><BR/>Gulf countries to keep currencies pegged to U.S. dollar<BR/><BR/>Despite the dramatic devaluation of the U.S. dollar in recent years, countries in the Gulf have voted unanimously to keep their currencies pegged to it.<BR/><BR/>Saudi Arabia, Qatar, Bahrain, Oman and the United Arab Emirates, members of the Gulf Co-operation Council, agreed Saturday to stay with the dollar. All are oil producers, and their major commodity is priced in U.S. dollars.Anonymousnoreply@blogger.com