Housing & Economic Collapse - In Progress

Armageddon

There are definitely people running this show, but the problem is they didn't account for peak oil until it was too late. They now want to conquer oil rich nations to keep their party going. The only part of the equation that is difficult to figure out is where does Russia and China stand ? We know the Rothschilds and co. control Europe and the US, that not even debatable, it's public knowledge.

threadbear · Expert Joined: Jan 22, 2005 Posts: 7475

shortonoil · Fission Joined: Dec 02, 2004 Posts: 2684 Location: VA USA

Iaato said:

idiom

Next step is everyone empties their accounts at the same time...

Iaato

TreeFarmer · Heavy Crude Joined: Jun 26, 2007 Posts: 317

Someone mentioned issueing a new currency. Why would we need to do that? Most of the inflation of the money supply is electronic in nature, it can go away as easily as it was created. The "real" haha money in circulation is the coins and paper money that we all hold and the banks have in their vaults.

When (if) there are major defaults it will result in the destruction of electrons, the tangible money will still exist.

I guess that is the thing about leverage working the other way, the trillion created by some entity who only had a million to begin with but leveraged it highly will just evaporate when that entity goes belly up.

TF

Iaato

That's a good question, TF. By the time we are done manipulating the heck out of the economic system, all faith in electronic fiat will be gone. There were some good threads this year here on digital currency and whether we would make it there or not. I think the consensus was no; that economic collapse would occur before we evolved to the level of credit chips embedded in our wrists.

So we'll have to start over with a tangible bill and coin and they'll have to look very different from the old ones, because of the bad taste in everyones' mouths. Unless we crest the peak oil peak and start down so quickly that we go right to barter and gold. Ha.

I think you're right that a lot of the worthless paper/electronic digits will just go poof. But they won't go poof without taking down a lot of corporations in the process.

Speaking of going poof, I want to return to the topic of the drop in commodities the last few days. I suppose the hedge funds are having to give up all their long positions as they go poof and deleverage. There are 9000 or so hedge funds out there. A lot of them are long commodities and commodity stocks. How low can we go?!?

What a ride. I love rollercoasters.
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"When fascism comes to America it will be wrapped in a flag and carrying a cross." --Sinclair Lewis

retiredguy

I just heard a talking-head on CNBC say that the interest rate reduction by the Fed is not helping. He said that the problem is still the same: money cannot be had at any interest rate.

Why did the Fed bail out Bear Stearns rather than let them face bankruptcy? One Op-Ed piece I read today suggested that, as disruptive as a bankruptcy at Bear would have been, that at least through the proceeding the auditors would have been able to determine just how much toxic waste they owned. By so doing, according to the writer's logic, a floor would be established to stabilize the financial system.

Sounds good a face value. But my suspicion is that the Fed has a pretty good idea of how much toxic waste is still floating around the system and certainly does not want that info to see the light of day. At least not yet.

Your thoughts??

shortonoil · Fission Joined: Dec 02, 2004 Posts: 2684 Location: VA USA

Iaato said:

retiredguy

Regarding gold. I heard tonight that it could drop to $800 before recovering.

It's going to be an interesting ride.

firestarter · Light Sweet Crude Joined: Mar 19, 2006 Posts: 1109

Gold down another $21 after hours. Massive margin calls?

Roubini has a short and disturbing blip at his site. This is really getting out of hand. Futures are also plummeting.
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Civilization: the biosphere's skin disease

idiom

Computer Power has been deflating at something close to 50% every 18 months for decades now. That has never been factored into any CPI Smile

DantesPeak

threadbear · Expert Joined: Jan 22, 2005 Posts: 7475

Interesting article about why and who is responsible for the Spitzer affair

From AsiaTimesonline:

That article, laying clear blame on the administration for the development of the subprime crisis, appeared the day after his ill-fated tryst with the prostitute at the Mayflower Hotel. Just a coincidence? Spitzer wrote, "In 2003, during the height of the predatory lending crisis, the OCC invoked a clause from the 1863 National Bank Act pre-empting all state predatory lending laws, thereby rendering them inoperative. The OCC also promulgated new rules that prevented states from enforcing any of their own consumer protection laws against national banks."

In his article, Spitzer charged, "Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye."

Bush, said Spitzer right in the headline, was the "predator lenders' partner in crime". The president, said Spitzer, was a fugitive from justice. And Spitzer was in Washington to launch a campaign to take on the Bush regime and the biggest financial powers on the planet. Spitzer wrote, "When history tells the story of the subprime lending crisis and recounts its devastating effects on the lives of so many innocent homeowners the Bush administration will not be judged favorably."

With that article, Spitzer may well have signed his own political death warrant.

http://www.atimes.com/atimes/Global_Economy/JC20Dj04.html

Eli

It is official the great unwind has begun.