And get ready.
The greatest housing crash in American history is underway. This is one for the history books.
The Second Great Depression
This week's data on the sagging real estate market leaves no doubt that the housing bubble is quickly crashing to earth and that hard times are on the way.
The bottom line is that inventories are up, sales are down, profits are eroding, and the building industry is facing a steady downturn well into the foreseeable future.
The ripple effects of the housing crash will be felt throughout the overall economy; shrinking GDP, slowing consumer spending and putting more workers in the growing unemployment lines.
Congress is now looking into the shabby lending practices that shoehorned millions of people into homes that they clearly cannot afford.
There's no doubt now, that Fed chairman Alan Greenspan's plan to pump zillions of dollars into the system via "low interest rates" has created the biggest monster-bubble of all time and set the stage for a deep economic retrenchment.
The meltdown in housing will soon be felt in the stock market which appears to be lagging the real estate market by about 6 months. Soon, reality will set in on Wall Street just as it has in the housing sector and the "loose money" that Greenspan generated with his mighty printing press will flee to foreign shores.
It looks as though this may already be happening even though the stock market is still flying high. On Friday, the government reported that net capital inflows reversed from the requisite $70 billion to AN OUTFLOW OF $11 BILLION!
It's all bad news. The global liquidity bubble is limping towards the reef and when it hits it'll send shock-waves through the global economic system.
Greenspan successfully piloted the nation into virtual insolvency. In fact, the parallels between our present situation and the period preceding the Great Depression are striking.
Now, 77 years later, Greenspan has led us sheep-like to the same precipice. The economic dilemma we're facing could have been avoided if the expansion of personal credit had been curtailed by prudent monetary policy at the Federal Reserve and if wealth was more evenly distributed as it was in the '60s and '70s. But that's not the case; so we're headed for hard times.
51 comments:
Keith - throw in Peak Oil and you have Die Off.
This is gonna get bad...really ...really...really bad.
This is the end of the world as we know it.
Now throw in a nuclear war...
and well - I think you get the point.
Hug the ones you love as often as you can...be grateful you are not hungry...and always save one round for yourself.
bought more ammo yesterday.
btw, ammo is up huge. 100-200% in the last 15months.
why? lead and copper prices are up 300% look at chart on kitco.
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Dear Trolls,
Tell me again why China should not sell 1 trillion USD's?
aka FMW
It's being called the "VERY GREAT DEPRESSION"
http://tinyurl.com/2edgm5
As anticipated last January in GEAB N°11, the « fog of statistics » is now clearing and US economic trends appear clearly (retail sales at a standstill in January 2007, record high trade deficit in 2006, downward revision of US growth for 2006, Fed's confirmation of economic slowdown, serial defaults among mortgage lending organisations, continued collapse of US housing market,...). Therefore, according to LEAP/E2020, and contingent on the specific evolution of each component of the US economy, the month of April will account for the inflexion point of the impact phase of the global systemic crisis, that is to say the moment when all negative consequences of the crisis pile up exponentially. More precisely, April will be the time when negative trends will converge, transforming many « sectorial crises » into a generalised crisis, a « very great depression », involving all economic, financial, commercial and political players.
In April 2007, nine practical consequences of the unfolding crisis will converge:
1. Acceleration of the pace and size of bankruptcies among US financial organisations: from one per week today to one per day in April
2. Spectacular rise of US home foreclosures: 10 million Americans out on the street
3. Accelerating collapse of housing prices in the US: - 25%
4. Entry into recession of the US economy in April 2007
5. Precipitous rate cut by the US Federal Reserve
6. Growing importance of China-USA trade conflicts
7. China's shift out of US dollars / Yen carry trade reversal
8. Sudden drop of US dollar value against Euro, Yuan and Yen
9. Tumble of Sterling Pound
In this February issue of the GlobalEurope Anticipation Bulletin (on subscription), LEAP/E2020 details the nature and sequence of these developments meant for all concerned players (currency or financial market operators, investors, international traders, political and economic decisions-makers or analysts) to better anticipation events. Strategy is time mastery! In the present issue of GEAB, our teams endeavoured to build a device to overcome this quarter's accelerating developments.
In this public announcement, LEAP/E2020 describes one of these nine direct consequences otherwise detailed in GEAB N°12 (on subscription), i.e.:
Spectacular rise of US home foreclosures: 10 million Americans out on the street
In 2006, US foreclosures increased by 42% , directly affecting an average of 1 US household out of 92. In states such as Colorado, California, Ohio, or Texas, 1 household on 35 or 40 falls victim of foreclosure. In October through December 2006 in Ohio, 3.3% of homes and apartments were filed in foreclosure . The pace of foreclosures accelerates as the number of insolvent US households increases (cf. GEAB N°10 on the issue of insolvency): in 2006, over 1.2 million foreclosures affected 4 to 5 million US citizens (counting between 3 and 4 persons per household).
Level of foreclosures in the US in December 2006
According to LEAP/E2020, the year 2007 will register at least a doubling in the number of foreclosures (3) due to the surge of record high numbers of mortgage loan refinancing on the market (close to 2,000 billion USD). 2 to 3 million homes will probably be filed in foreclosure and about 10 million US citizens thrown out of their homes in the course of this year. All those who doubt whether the US actually entered a “very great depression” should pay a visit to field reality and observe the devastating effect of the housing and financial crisis for millions of Americans (4). Scores of blogs appeared on the web trying to review the on-going housing disaster and the stream of human tragedies (5). Taking into account that a US citizen has three months between initial default on interest repayment and actual foreclosure, LEAP/E2020 estimates that it is indeed in April that the second wave of foreclosures will hit the US market.
infidel woman asked:
Dear Trolls,
Tell me again why China should not sell 1 trillion USD's?
I'm not a troll, but I do have one possible answer to consider.
Because OPEC leaders and countries have threatened to bomb them if they tank the US$$ before OPEC gets rid of theirs.
Yes... there are two major powers in the world rattling swords over who gets "first right" to dump their USD holdings.
And I'm sittin' here in the very best seat on the Titanic!!! BWAAAHHHAAA
I think you'd have to go a fer' piece to find anyone more bearish on RE than myself. And not just in predicting a stern and well deserved correction, but also in duration! I've been bearish on RE (yes believe it or not) since around 2000.
More than anyone I know Mike Whitney attempts to politicize the Great Bubble. Some of the connections stick, most don't. This is why I take great lengths to exhibit that the real root cause of the RE bubble lies in a change in our tax code back in 1997 when we made capital gains on RE basically a thing of the past!
True, true, cheap money (and the politics behind it) will take the brunt of the blame but think of it this way? We've all driven through refinery towns right? Tanks and tanks of diesel and gasoline as far as the eye can see (yet none of it appears to be exploding?) That's right, and it won't! That is until it reaches the proper temperature to i g n i t e ! Without out "it" (our tax code change) it just sits there being ugly.
Mr. Tax Free Capital Gains?
Meet Mr. Gasoline!
I'll stand by for my customary flaming for not being a "true" bubble patriot now.
Yup it is here for sure, so when Joesixpack decides not to continue to pay on a losing asset so will the next guy and the next and the next and the next...vicious cycle we are in for sure..but I made it thru the 80's and I will survive this one also.
What we need is a war with Iran to focus the sheep on.
Don't worry... Greenscam today said a recession might not be probable... What???
How much does it cost to mail one's keys to the bank?
"Anonymous said...
bought more ammo yesterday.
btw, ammo is up huge. 100-200% in the last 15months."
Wideners.com has 5.56mm M855 in stock for the cheapest I have found. Just picked up 1k rounds. Now I just have to find a good source for gold/silver.
"It's a CSI subprime."
The risk in subprime
During the boom, lenders gave homeowners loans they couldn't afford. Now they're feeling the consequences.
By Ellen Florian Kratz, Fortune writer
March 1 2007: 10:10 AM EST
NEW YORK (Fortune) -- When a certain $126,000 subprime loan on a $696,000 house on the West Coast failed to produce a single mortgage payment, alarm bells went off at Clayton Holdings, a company that monitors credit risk.
Closer scrutiny revealed other red flags. The borrower's previous rent payment had been $1,000, compared to the $4,482 she was supposed to be shelling out for both the primary loan and the $126,000 piggyback. And her stated income was $84,000 even though she was an hourly worker at Target.
"We do an autopsy to find out what caused the loss of blood," says Keith Johnson, Clayton's COO. "It's a CSI subprime."
In the past few weeks, the bodies have been piling up fast and furiously. Fallout from subprime mortgages - that is, home loans to borrowers with a blemished credit history - gone bad has wreaked havoc on the industry.
Big names Washington Mutual (Charts) and HSBC have reported hits tied to their subprime business and there has been a nonstop barrage of bad news for major subprime lenders, including New Century Financial (Charts) and NovaStar Financial (Charts).
Now the worry is what happens to the economy if enough homeowners go into default and to the financial markets if enough investors take a bath on mortgage-related securities.
The market may want to brace itself for more surprises. "To one degree or another, all of these lenders are facing the same kind of difficulty," says Mark Zandi, chief economist with Moody's Economy.com.
Last year, 13.5 percent of mortgages originated in the U.S. were subprime, according to the Mortgage Bankers Association, compared to 2.4 percent in 2000.
By the end of 2006, subprime delinquencies more than 60 days late jumped to almost 13 percent, compared to 8 percent a year earlier, according to LoanPerformance.
As for foreclosures, they're currently running 25 percent higher than they were this time last year, according to RealtyTrac. "We don't have high unemployment, high interest rates or a slowing economy, but we're seeing the number of foreclosure filings pushed above historic averages," says Rick Sharga, a marketing exec for RealtyTrac. "You can't underestimate the effect of higher risk loans."
Adding to the problem are jittery lenders who have suddenly begun to tighten their standards. "You're seeing credit score requirements being increased. You're seeing documentation firming up," says Bob Walters, chief economist with Quicken Loans. "Fewer people will get loans and maybe rightly so."
The higher hurdles, while perhaps healthy for the long term, will cause a short- term credit crunch. Translation: delinquencies and foreclosures should rise, which will create more credit problems in a vicious cycle that will probably weigh on housing for the rest of the year.
None of this is good news to investors in U.S. residential mortgage-backed securities, which now account for some 20 percent of the global fixed income market, the largest component.
And plenty of investors have been drawn into the riskier subprime pieces of these mortgage-backed securities that yield higher payoffs, instead of sticking with highly rated mortgage securities.
Particularly troubling for investors is the rapidly deteriorating quality of subprime vintages originated in 2005 and 2006, years when lenders were downright promiscuous about who they loaned money to.
Serious delinquencies - defined as loans at least 60 days late or in foreclosure or bankruptcy - for a 5-month old loan originated in 2006 is running at almost 4 percent, according to Moody's, compared to 2.2 percent for a similar loan originated in 2004.
The scariest part of that statistic is the fact that 2006 borrowers are still in their fixed-rate period. "What will they do when their payment starts to rise?" says Glenn Costello of Fitch Ratings.
The worry then is that somebody, somewhere has been overly aggressive in their subprime investments and goes belly up, spooking investors and sparking a world financial crisis.
That, of course, is just the nightmare scenario and not everybody is convinced the fallout will be so widespread. "I think [the risk] is containable," says Lewis Ranieri, Chairman of private equity firm Hyperion, who developed the idea of mortgage-backed securities in the 1970s when he worked at Salomon Brothers. "I don't think this is going to be a cataclysm."
Many point to last fall's implosion of hedge fund Amaranth as a sign that markets can handle these kinds of setbacks.
But not everyone finds that argument soothing. "If there is a fault line in the global financial system, it runs through the U.S. mortgage market," says Zandi. "Everyone throws up Amaranth, but that involved a small market with little implication for any other asset class. If some hedge fund blows up on a residential mortgage-backed securities investment, that has very different kinds of implications because it is the biggest chunk of the global fixed income market. So the ripples will be more like waves, and it could turn into a tsunami."
_____________________
Home 'flipper' gets stung
Home slump continues
Fitch Ratings yesterday downgraded all debt ratings for Fremont General (NYSE:FMT) and placed both the financial holding company and its investment & loan banking operations (Fremont Investment & Loan, or FIL) on Rating Watch Negative, following Fremont’s disclosure that it will postpone the release of its fourth quarter and full-year 2006 results of operations. Housing Wire reported on the delay yesterday.
Fitch said it has downgraded Fremont General Corp.’s long-term Issuer Default Rating (IDR) to ‘B+’ from ‘BB-’, the long-term senior debt to ‘B’ from ‘B+’, and the Individual rating to ‘D’ from ‘C/D’. Fitch has also downgraded the Preferred Stock rating of Fremont General Financing I to ‘CCC+’ from ‘B-’.
When do we decide that ignorance, hope,
and complacency are not business plans ?
Who will see prison for decades of
crappy schools ?
Not us; the kids will pay.
But a million citizen-serfs can
turn systemic tides.
My sorry ass is not worth my sorry soul.
Dow Jones facing lawsuits over computer glitch
Seventy minutes of wrong information may have cost millions
By Matt Chapman 01 Mar 2007
A computer glitch caused by heavy trading on the Dow Jones index may have led firms to lose millions of dollars.
Dow Jones has admitted that its calculation of the industrial average was wrong for 70 minutes, as systems struggled to cope with increased trading in the face of a falling Chinese market and America's economic uncertainty.
The error happened at 1.50pm EST on 27 February, leaving the overloaded systems not showing the correct fall in 400 supposedly live indices.
A back-up system at Dow Jones' New York offices updated the figures to their correct live status at 3pm, showing a sudden 178-point fall in the index.
This dramatic drop in the apparent space of a few seconds worsened the panic in a market that was already trying to reduce losses.
However, Dow Jones issued a statement in response to a letter from the House Committee on Financial Services distancing itself from the stock market conditions created by the glitch.
"It is important to understand that Dow Jones has no role in trading stocks or pricing individual securities, including securities underlying our indexes," said the official statement.
"We are conducting a detailed review of yesterday's events and do not believe the calculation delay or the subsequent catch up in the Dow Jones Industrial Average [DJIA] exacerbated the market decline, as the market was down sharply during the 70-minute period and rebounded strongly soon after the DJIA was brought current.
"We regret yesterday's unprecedented events and are taking remedial actions to prevent their recurrence, but we have no reason to believe that any investors were harmed."
Despite this claim Dow Jones is now expected to be hit by a number of lawsuits from trading firms which made decisions during that 70-minute period based on the wrong information.
The biggest claimants are expected to be derivative and index-linked mutual funds which used the Dow Jones calculations rather than figures from elsewhere.
Can't Figure it out
A $1,000,000 mortgage (If you are buying a $1.2 million typical McMansion) at 6.25% costs $6,100 per month, taxes on your million dollar house (Which now is nothing more then a nice large 3-4 bedroom 2 bath split here in north Jersey) taxes are like $14k per year or $1,100 per month, heating, cooling & electric $300 per month, repairs maintenance $200 month, oh insurance $80 month So it looks like about $7,800 per month or $93,000 per year. Where oh where do these people work? Who hires all these high paid people? What kind of important value added jobs do they do?
Al Sharpton will take the homeowners side when it gets a little worse.
He said "This is a travisty on the people, and I will stand for nothing less than a reduction in property taxes, and a rate cut."
http: tinyurl/ii56d34
If, what is proposed here should in fact come to pass, the demise of the Dollar, 10’s of millions of homeless, economic melt-down on all fronts, I can predict the certain outcome. Cannibalism! As the Germans say “Guten Appetit Arschloch”. I can’t believe you stinking dumb-fuck morons really believe what you write. Bow to your Fuehrer!
Report: Iran War Is Set to Start Now, But Resistance Has Given Bush ‘Weak Knees’
Posted by Jon Ponder | Feb. 28, 2007, 7:58 am
Apocalypse now:
New reporting by Robert Parry on the behind-the-scenes battle between Pres. Bush and the U.S. military’s top generals picks up where the Seymour Hersh’s story in the New Yorker leaves off — painting a picture of a what amounts to a quiet military coup at the very top ranks of the Pentagon against the neocon cabal at the White House.
"Bush had planned to launch an attack on Iran, possibly as early as this week, but was getting “weak knees.”
Shout this out to anyone who will listen. The consequences of a war with Iran would be unimaginably catastrophic. It would not solve our problems with terrorism, but increase them manyfold.
Peace is hard work. It demands the best minds at our command as well as patience, persistence and resolve.
I hate to say this, because I am a housing bear. Real estate and stocks will not be allowed to lose money, period. There may be some losers, but the PTB will inflate until everything makes sense again. Is $50 too much for a diet cola?
On The Cutting Edge Of A Self-Perpetuating Spiral
Team Bush plans to produce as much red ink as humanly possible
End of the world as we know it?
Throw in a nuclear war?
China is selling $1 trillion?
OPEC will bomb China?
25% decrease in house prices?
It's official. HP members have gone off the deep end.
Cheney Warns Of Nuclear Iran; War Option "still On The Table"
They have made some fairly inflammatory statements. They appear to be pursuing the development of nuclear weapons. It would be a serious mistake if a nation such as Iran became a nuclear power."
Once again I wonder what planet you people live on.
Uh, Counterpunch is a socialist web site, so now you're looking to socialist drivel to predict free markets? The linked article leads with a quote from, who else, Karl Marx.
You guys need to get a life. The world is not ending. The sky is not falling. The economy is not crashing.
That people like you are allowed to vote, have children, and even speak is a bit troublesome. You need to be put somewhere.
Re: The Second Great Depression.
Dealing with pesky bill collectors and foreclosure notices can be a real drag. However, there is an easy way to deal with these stress-inducing annoyances.
Take some advice from an expert: Get Foreclosure Help by Drinking Fresh Juice.
Tra-la-la.
Friday -> major news = market tanks.
Hi all, I'm coming down there
Found On Mish's.
Uncle Fred is pleased to announce that effective September 1, 2007 we will cease buying subprime mortgages that have a high likelihood of excessive payment shock and possible foreclosure. Our goal is not really to protect consumers from default, but rather our goal is self preservation. We want to protect ourselves against massive losses that other lenders are seeing.
Second, the company will limit the use of low-documentation underwriting for these types of mortgages to help ensure that future borrowers have the income necessary to afford their homes. Why we allowed such loans in the first place can be summed up in one word: greed.
We will implement these new investment requirements for mortgages originated on or after September 1, 2007 to avoid market disruptions (such as a sudden hit to loan volume) which might cause investors to panic.
To help lenders better serve borrowers with impaired credit, Uncle Fred is also developing fixed-rate and hybrid ARM products that will provide lenders with more choices to offer subprime borrowers. We are doing this to not as a favor to anyone but in desperate hope of keeping volumes going. Honestly, we don’t think this will work, but what else can we do?
Uncle Fred continues to play a leading lagging role in combating predatory lending and putting families into homes they can afford and keep. Proof is in the pudding. We let subprime abuse continue for years and did nothing about it. We took the loans knowing full well they were garbage. Simply put, we wanted our fair share of the graft. But in the wake of 27 subprime lenders blowing up, the market forced us to react. Better late than never we always say.
Uncle Fred’s new requirements cover what are commonly referred to as 2/28 and 3/27 hybrid ARMs, which currently comprise roughly three-quarters of the subprime market. Specifically, the company is requiring that borrowers applying for these products be underwritten at the fully- indexed and amortizing rate, as opposed to the initial "teaser" rate. Quite frankly we got tired of being a tease, not for moral reasons, but out of fear for our stock options.
We will no longer purchase "No Income, No Asset" documentation loans and will limit "Stated Income, Stated Assets" products to borrowers whose incomes derive from hard-to-verify sources, such as the self-employed and those in the "cash economy." Obviously we should have done this long ago. Honestly, we really don’t know what we were thinking. If you know what we were thinking, please tell us.
In addition, Uncle Fred will require that loans be underwritten to include taxes and insurance and will strongly recommend that the subprime industry collect escrows for taxes and insurance, as is the norm in the prime sector. Because the maintenance of escrow accounts is not widely used in the subprime sector, Uncle Fred does not believe it is practical to unilaterally mandate it as a purchase requirement at this time. This is consistent with our policy to be a market follower and to react only when the market forces us to.
"Escrowing for taxes and insurance clearly provides an added layer of consumer protection. It is our hope that this universal practice in prime lending today becomes the universal practice in subprime lending tomorrow.” We reduced to hoping that someone does what needs to be done while we wait for that to happen.
Our official policy is clear:
"There’s no time like the future to do what we think needs to be done today".
Uncle Fred apologizes for its role over the last few years in failing to prevent predatory lending and rising foreclosures. From now on (and we mean it this time… maybe) the following polices will be enforced strictly encouraged:
refusing to do business with institutions that engage in predatory lending practices (except of course we are willing to overlook such things like enormous prepayment penalties for up to 3 years)
not investing in mortgages that require mandatory arbitration (except for major homebuilders like Lennar, KB Homes, TOL, and well everyone else too... at our at our discretion of course)
refusing to invest in high-rate or high-fee mortgages as defined by the Home Ownership and Equity Protection Act of 1994 (HOEPA), as well as mortgages with single-premium credit insurance or subprime mortgages with prepayment penalty terms of more than three years. Three years is all our conscious can bear at this point in time. Besides, three years covers almost all of these offerings anyway. This makes it look like we are really doing something when we aren't. Prepayment fees are very lucrative. We don't want to shut off that gravy train prematurely.
requiring that lenders provide complete credit information about borrowers to all the credit bureaus and reporting agencies (This requirement is so basic that it should be a given. But we needed to pad our bullet point list a bit).
Finally we would like to wash our hands for our role in the ongoing housing collapse. We are doing that with superficial programs such as FredSmart®, and Don’t Borrow Trouble. We readily admit that such programs will be about as effective as warning teenagers about premarital sex but what the heck? These catchy sounding programs just might stop a lawsuit sometime down the road.
Uncle Fred is a stockholder-owned company established by Congress to support homeownership and rental housing. Uncle Fred fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets.
Our new truth in lending policy requires us to point out that these debt instruments are often packaged as AAA government bonds (even though they shouldn't be rated AAA nor are they really government bonds in the first place). We sell these debt instruments to unsuspecting pension plans, hedge funds, and foreign investors who do not fully understand the risks of a housing implosion (and/or are simply too greedy to care).
Over the years, corporate insiders at Uncle Fred have profited tremendously from our quasi-government relationship. We are acting as best we can to smooth earnings (and with regulators breathing down our necks this is getting more difficult every passing day). We hope that superficial announcements like this will keep our stock prices high, stock options flowing, and insiders (us) happy.
I don't know what you are all worrying about.
OK we get a Great Depression,
Goods and services prices fall, hey no need to buy gold silly. Things are cheaper, hurray!
Unemployed? No problem, the Gub-ment will fund WPA programs and go deeper into debt.
Not sure if interest rates will go up or down. Japan seems to think raising interest rates makes consumers spend more since they get bigger returns on their savings. OK, right, forgot, we have no savings so Bernancke will drop interest rates...
Oh but I forgot, it doesn't matter what the Fed rate is, banks still won't loan money out. (Study the 1930s Depression and Japan recession)
Dollar will crash? Well all currencies will "crash" silly, it's a WORLDWIDE depression. So no problem there...
China will dump dollars? I don't think so; they would be cutting their own throats. Who's going to by their crap? Don't know if you people understand, WE OWN CHINA'S ASS.
The globe will stop trading oil in US Dollars and Airbus will stop pricing planes in US Dollars.....HAHAHAHAHA yeah right!!! What are they gonna use, Brazilian Real????
And besides, all we have to do is start a World War and everything will be fine afterward just like WWII. That'll put everyone back to work.
See, no problem. :)
See you somewhere near Area 51. Exact location to remain secret for now.....
Report: Iran War Is Set to Start Now, But Resistance Has Given Bush ‘Weak Knees’
Here's another "report".
HP is full of wackos.
wtf happened to this blog Keith? Used to be an orderly discussion about the housing market with differing opinions being voiced. Now it is nothing more than a collection of conspiracy theorists exchanging the latest garbage they came upon.
You sounded like a guy who was pretty level headed, but unfortunately you've gone to the dark side too.
Oh and how's that gold
PRECIOUS METALS
You'll want to be in them when the derivative market quakes.
"wtf happened to this blog Keith?"
You ANONS showed up.
Now I just have to find a good source for gold/silver.
www.kitco.com
www.golddealer.com
www.nwtmintbullion.com
Cheapest prices I've found, all reliable.
B..B..But Mr. Bush gave us a $300 rebate ..an..an...and SUZANNE said EVERYTHING is A-Okay.
Ha ha ha
blowfly says,
OOOOh! Sheep!
The quote by Marx at the beginning was right on and if you read the column you'd have seen how the writer tied today's credit bubble to the economic "class system" that capitalism gives us.
Marxism is an ideolgy, a way of looking at the world, and it's a whole lot more helpful in understanding things that following the likes of Alan Greenspan these days.
Sell, rent, save, wait, clean-up!
We had Word War II, and World War II.
We had Great Depression, er, I. When will we get to Great Depression II?
Huh? Oh man this is getting creepy.
The parallels are uncanny.
I sold out my Silver EFT (SLV) one day before the crash. Nice. Now I'm waiting for it to bottom so I can get back up in there.
I feel naked without my precious metals.
Ah yes. My new business idea.
Selling status of Ben Dover, the Patron Saint of Screwed Home Buyers:
BOHICA = Bend Over Here it Comes Again
http://tinyurl.com/2szb3a
B..B..But Mr. Bush gave us a $300 rebate ..an..an...and SUZANNE said EVERYTHING is A-Okay.
Another tell of the low income nature of the HP crowd. If all you got was a $300 tax cut (and that is every year not a one time rebate you bafoon, the $300 rebate was a retroactive rebate for 2001) then your income is under $20K. Just another minimum wage renter blogging on his 15 minute break.
would you like fries with that?wages?
The doomsayers make a good point but always start sounding like chicken little when they keep blaming everything on "Greenspan" and the fed like they are some all powerful god. It always defeats the writers logic- if these "gods" were so powerful to get US into a mess, they would be powerful enough to get us out too, now wouldn't they be?
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