I agree wholeheartedly here. We are on virgin ground. Never before has the American lifestyle been so leveraged going into an inflationary recession. There will be MASSIVE DEFAULTS and it will turn into a positive feedback mechanism. The court system will be swamped with foreclosures, so many, there will be waiting lists years long. Many responsible borrows, stretched to the max will watch in envy as their irresponsible neighbors have stopped paying their mortgage with little repercussions and they get pissed so they stop paying. It snowballs out of control. _________________ "That's the problem with mercy, kid... It just ain't professional" - Fast Eddie, The Color of Money
Posted: Tue Jun 24, 2008 3:20 pm Post subject: Re: Financial Tsunami
Kingcoal wrote:
The court system will be swamped with foreclosures, so many, there will be waiting lists years long. Many responsible borrows, stretched to the max will watch in envy as their irresponsible neighbors have stopped paying their mortgage with little repercussions and they get pissed so they stop paying. It snowballs out of control.
hmm, "court system will be swamped", "out of control" sounds like its time for Captain FEMA Camp to the rescue.
Faster than an overworked Baliff
More powerful than a military draft
Captain FEMA Camp can round up thousands of delinquent homeowners with a single Presidential Order.
So never fear insolvent Investment bank Captain FEMA Camp is here!
Joined: May 06, 2008 Posts: 291 Location: Omicron Ceti 3
Posted: Tue Jun 24, 2008 3:29 pm Post subject: Re: Financial Tsunami
`A battered, over-indebted consumer, if forced to retrench, could create even more problems for the banking system as loan delinquencies would begin to rise even further. All sorts of delinquencies are rising. This is now a systemic issue.''
Joined: Oct 18, 2004 Posts: 1926 Location: kiwibush
Posted: Tue Jun 24, 2008 3:30 pm Post subject: Re: Financial Tsunami
FoxV wrote:
Kingcoal wrote:
The court system will be swamped with foreclosures, so many, there will be waiting lists years long. Many responsible borrows, stretched to the max will watch in envy as their irresponsible neighbors have stopped paying their mortgage with little repercussions and they get pissed so they stop paying. It snowballs out of control.
hmm, "court system will be swamped", "out of control" sounds like its time for Captain FEMA Camp to the rescue.
Faster than an overworked Baliff
More powerful than a military draft
Captain FEMA Camp can round up thousands of delinquent homeowners with a single Presidential Order.
So never fear insolvent Investment bank Captain FEMA Camp is here!
I wouldn't be too sure of that. How is a bankrupt Capt goin to feed itself, let alone hordes of hungry mouths it has taken under its wing, in a manner if speaking.
Let's not forget, those pictures of concentration and refugee camps harken us back to days when crude oil was in abundance. Today we are in an entirely new era, the age of not only bankrupt individuals, but entire states as well. _________________ Bugger me, I hear oil's runnin out mate!
I agree wholeheartedly here. We are on virgin ground. Never before has the American lifestyle been so leveraged going into an inflationary recession. There will be MASSIVE DEFAULTS and it will turn into a positive feedback mechanism. The court system will be swamped with foreclosures, so many, there will be waiting lists years long. Many responsible borrows, stretched to the max will watch in envy as their irresponsible neighbors have stopped paying their mortgage with little repercussions and they get pissed so they stop paying. It snowballs out of control.
No way. When the banking system is threatened, they could expedite those foreclosures to about one per minute per court room.
I agree wholeheartedly here. We are on virgin ground. Never before has the American lifestyle been so leveraged going into an inflationary recession. There will be MASSIVE DEFAULTS and it will turn into a positive feedback mechanism. The court system will be swamped with foreclosures, so many, there will be waiting lists years long. Many responsible borrows, stretched to the max will watch in envy as their irresponsible neighbors have stopped paying their mortgage with little repercussions and they get pissed so they stop paying. It snowballs out of control.
No way. When the banking system is threatened, they could expedite those foreclosures to about one per minute per court room.
Then what? Who's going to live in the massive amount of foreclosed homes across the country? There have already been reports of ghost neighborhoods popping up in some regions of the country due to foreclosures and defaults. Will the banks rack up massive legal expenses for homes no one wants? If they decimate the middle class homeowner they will have decimated themselves. They better start negotiating with folks who are in default and give them better terms because some money is better than no money instead of holding a deteriorating empty house with no prospective buyers on the books. _________________ It's a cold cold world when a man has to pawn his shoes.
Joined: Dec 27, 2004 Posts: 12497 Location: zombie horde wonderland
Posted: Tue Jun 24, 2008 4:39 pm Post subject: Re: Financial Tsunami
At the beginning of 1934, 50% of all urban homes with outstanding mortgages were in default. _________________ No original ideas are contained in this post.
Joined: Oct 18, 2004 Posts: 1926 Location: kiwibush
Posted: Tue Jun 24, 2008 4:45 pm Post subject: Re: Financial Tsunami
TreeFarmer wrote:
Have you all seen the movie "The Grapes of Wrath"? Even though the Joad family was homeless they still had gas for the truck.
This time around there will not be any gas...
TF
A world of 6.5 billion and a dwindling energy source. Frankly, I don't believe we have quite seen the depths humanity will sink to when under stress. All we can hope for is that we will be spared the worst of what is to come. _________________ Bugger me, I hear oil's runnin out mate!
Joined: May 07, 2007 Posts: 434 Location: Adelaide, South Australia
Posted: Tue Jun 24, 2008 6:36 pm Post subject: Re: Financial Tsunami
americandream wrote:
I wouldn't be too sure of that. How is a bankrupt Capt goin to feed itself, let alone hordes of hungry mouths it has taken under its wing, in a manner if speaking.
Let's not forget, those pictures of concentration and refugee camps harken us back to days when crude oil was in abundance. Today we are in an entirely new era, the age of not only bankrupt individuals, but entire states as well.
They'll be able to do it for quite a while. You'll probably see the systems of Maricopa County Sherriff Joe Arpaio (Arizona) utilised to reduce costs to an absolute minimum, after all, defaulters will likely be treated as low-security criminals in a world where FEMA camps are in operation. Among the other cost-restricting measures he uses is this:
Read the whole article. That's what FEMA camp inhabitants will likely be dealing with. _________________ "That the cream cannot help but always rise up to the top, well I say, <censored by peakoil.com> floats"
Joined: Sep 29, 2004 Posts: 2330 Location: Pennsylvania, USA
Posted: Tue Jun 24, 2008 7:05 pm Post subject: Re: Financial Tsunami
Ludi wrote:
At the beginning of 1934, 50% of all urban homes with outstanding mortgages were in default.
Wow, history repeats itself. I expect a round two new deal from the feds. Gold confiscation, etc. _________________ "That's the problem with mercy, kid... It just ain't professional" - Fast Eddie, The Color of Money
Joined: Sep 14, 2004 Posts: 6468 Location: Rural Virginia
Posted: Tue Jun 24, 2008 7:38 pm Post subject: Re: Financial Tsunami
Not much of an article. Still, it speaks the truth.
It isn't just mortgages. Rates of default on car notes and credit cards are shooting up.
The American public is very poorly positioned to trade in those Chevy Suburbans for Priuses. _________________ "Actually, humans died out long ago."
---Abused, abandoned hunting dog
"Things have entered a stage where the only change that is possible is for things to get worse."
---Me and my brother
Joined: Sep 14, 2004 Posts: 6468 Location: Rural Virginia
Posted: Tue Jun 24, 2008 7:39 pm Post subject: Re: Financial Tsunami
Kingcoal wrote:
Ludi wrote:
At the beginning of 1934, 50% of all urban homes with outstanding mortgages were in default.
Wow, history repeats itself. I expect a round two new deal from the feds. Gold confiscation, etc.
How are the Feds going to confiscate gold, Kingcoal. Tell me exactly how they are going to do it. _________________ "Actually, humans died out long ago."
---Abused, abandoned hunting dog
"Things have entered a stage where the only change that is possible is for things to get worse."
---Me and my brother
Posted: Tue Jun 24, 2008 7:47 pm Post subject: Re: Financial Tsunami
Heineken wrote:
How are the Feds going to confiscate gold, Kingcoal. Tell me exactly how they are going to do it.
OK...make transactions to buy or sell gold illegal. Make possession illegal.
Now pass enabling legislation to confiscate privately held gold. Include a law that requires all dealers in gold to turn their records over, with prison sentences if they fail to do so.
Pass further legislation that gives any snitch who provides information about privately held gold with 25% of the proceeds from the confiscated contraband.
Change bank regulations to require inspection of contents of safety deposit boxes.
Make importation or export of gold a federal felony. Enforce the law.
Arrange some high-profile arrests. Perp walk, crying, weeping children, and so forth.
Offer an amnest for those who turn in their gold.
You won't get all the gold...but you'll get a lot.
Joined: Dec 07, 2005 Posts: 1855 Location: Australia
Posted: Tue Jun 24, 2008 7:58 pm Post subject: Re: Financial Tsunami
Quote:
How are the Feds going to confiscate gold, Kingcoal. Tell me exactly how they are going to do it.
The situation is somewhat different this time. One reason they shouldn't confiscate gold is becasue according to central bankers it is just a barbareous relic. So confiscating it would be to admit that they lied and it holds value.
Assuming however they do go ahead, they don't need to confiscate all of it. Take what is in the ETF's and compensate with some paper money. Prohibit holding of bars and bullion and impose harsh penalties. Raid safe deposit boxes. (Already practiced in UK on 7000 boxes, without court order) Possibly reward dobbers.
Bit like the last confiscation except they can take a lot in one swoop with the ETF's. The big question is though if this will be coordinated across a number of nations. _________________ Lets take a ride, and run with the dogs tonight
In suburbia
You cant hide, run with the dogs tonight
In suburbia
- Pet Shop Boys
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