Don’t worry, just a little bump - $70 is just around the corner. Short traders just keep making those margin calls, mortgage the house if you have to. Fortunes await you! PO is for pansies and doomers. At $70 short some more ..... it is going back to $22 .... the world is awash with oil ........ reality has nothing to do with it, its all in those charts!!!!!!!!!!
Posted: Fri Jul 04, 2008 3:04 am Post subject: Re: Housing & Economic Collapse - In Progress - #2
Quote:
More than four million households have resorted to personal loans or credit cards to cover mortgage or rent payments in the past year.
The financial comparison site Moneysupermarket.com said that many more homeowners could be sucked into a spiral of servicing long-term debt with expensive short-term borrowing when about £30 billion of mortgage deals come to an end this month.
It pointed out that homeowners who take a personal loan to repay a mortgage, but lie about the reason, risk being charged with fraud.
Link, not news to many keen observers here in the UK, but worth sharing with the class. UK families struggling to keep there heads above water. Houses they can no longer afford norsell them they may be in negative equity already.
Quote:
Tell me true tell me why was Jesus crucified
is it for this that daddy died?
was it you? was it me?
did I watch too much t.v.?
Is that a hint of accusation in your eyes?
if it wasn't for the nips
being so good at building ships
the yards would still be open on the clyde
and it can't be much fun for them
beneath the rising sun
with all their kids committing suicide
what have we done maggie what have we done
what have we done to England
should we shout should we scream
"what happened to the post war dream?"
oh Maggie Maggie what have we done?
Joined: Oct 23, 2004 Posts: 5415 Location: New Jersey
Posted: Fri Jul 04, 2008 11:10 am Post subject: Re: Housing & Economic Collapse - In Progress - #2
Indeed banks selling off assets can create deflationary conditions - if not offset by inflationary actions of the Federal Reserve and other central banks.
But central banks have stepped up - and more. In addition to the Federal Reserve monetizing (that is converting financial company assets into money) about $400 billion in bank/broker assets, foreign central banks are buying US dollars at a rate of about $500 billion per year in the second quarter of 2008. In other words, not only is the US debasing its dollar with low quality assets, but other central banks are debasing their currencies by buying US dollars (which then back up their currencies).
The net result is inflationary in two ways. First, the act of debasing a currency makes it worth less. Second, while the Federal Reserve is not increasing the total amount of assets any faster than usual, other countries are to buy all these US dollars. Therefore the total amount of money keeps increasing (contributing to the growth in US money supply).
My conclusion is, again, that deflation is unlikely and that continued hyperinflation of commodities is likely. I don't even see commodities declining in price in the longer term through the recession, that I previously said would be picking up in force at mid-year.
In the short term, I see oil prices going higher followed by a pull back in September and October. _________________ It's already over, now it's just a matter of adjusting.
In this report, I introduce you to an amazing chart. It is getting zero attention from the mainstream financial media. The information it conveys is at the heart of Bernanke's looming problem. I have decided to post a link to this chart on a permanent basis in the "Free Materials" section of my website.
But, first, here is some background information. The Federal Reserve System on December 17 began a unique experiment: debt swaps with large commercial banks. The FED is now swapping at face value highly marketable U.S. Treasury securities in exchange for discounted mortgages. Nothing like this has ever been attempted before. It represents an innovation in central bank policy. It is called the Term Auction Facility (TAF). The initial offer was for $20 billion in swaps.
Since that time, the 28-day swaps have risen in volume to $75 billion.
As of May 5, according to the FED, $150 billion in TAF swaps have taken place.
The rate charged is about 2%. This is why the FED has cut the FedFunds rate to 2% – not to stimulate the economy directly but to make available TAF loans at low rates.
Here is how the game is played. The borrowing banks can place the borrowed Treasury debt on their books at close to face value. This looks as though the banks are meeting their capital requirements.
What is really going on? Deception on a massive scale – a fully legal deception that the U.S. government's bank auditors understand and go along with.
Lew Rockwell _________________ It's already over, now it's just a matter of adjusting.
Small-caps historically seen leading market out of recession; could signal rebound in starting
NEW YORK (AP) -- Even as Wall Street skids lower almost by the day, and the major indexes have touched the levels of a bear market, some analysts are actually finding some signs in the performance of small-company stocks that might be pointing to the early stages of a much broader recovery.
Since the day Las Vegas was created in the shimmering Nevada desert, visitors have been drawn by one simple promise: "What happens in Vegas stays in Vegas". The motto adorns the city's road signs, and has inspired everything from its souvenir T-shirts to the local tourist board's seductive advertising campaigns.
These days, that motto is imbued with a worrying sense of irony. Because America's most outrageous city is facing a growing multitude of problems, and they all boil down to a single, unavoidable point: right now, far too little happens in Vegas, because not enough people are actually staying there.
The onset of global slowdown, high petrol prices, and a nation-wide housing slump is spelling disaster for a town that owes every aspect of its wealth – from that gaudy replica of the Eiffel Tower to those scale models of Venetian canals and the Pyramids of Egypt – to its ability to inspire free-spending hedonism.
Peak hedonism? _________________ "Against stupidity the gods themselves contend in vain."
-Friedrich von Schiller
Joined: Apr 13, 2005 Posts: 2850 Location: St.Louis, Mo
Posted: Sat Jul 05, 2008 8:54 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
Homeowners turn to loans to pay mortgages
Increasing numbers of hard-pressed homeowners and tenants are turning to personal loans and credit cards to fund their housing costs.
More than 4 million households have taken out a personal loan or credit card to cover their mortgage or rental costs in the past year, according to a survey by comparison service Moneysupermarket.com.
Tim Moss, head of loans and debt at Moneysupermarket.com, said: "It's a very serious situation when you have people turning to a short-term solution to fund a long-term product.
"Taking out a loan specifically for a mortgage goes against lenders' rules. To be funding your mortgage repayments with a credit card that will charge you interest of over 15 per cent is not the solution in the long term.” mortgages
Joined: Dec 27, 2004 Posts: 11880 Location: zombie horde wonderland
Posted: Sun Jul 06, 2008 4:32 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
idiom wrote:
So a lot more foreclosures are hiding behind a dam of creditcards?
Wow. That makes me feel better.
I think this is why we see big chunks of the economy apparently going along as normal - people are just putting everything on credit cards, and hoping they will never have to pay them off.
_________________ "...powerdown so soft and fluffy you'll think you're living in a pillow..." - jboogy
Joined: Apr 13, 2005 Posts: 2850 Location: St.Louis, Mo
Posted: Sun Jul 06, 2008 4:35 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
In the coming week, millions of ordinary investors will rip open envelopes holding their retirement account statements for the second quarter and cringe. Most will find their stock and bond funds in 401(k) and individual retirement accounts sank between April and June as soaring fuel prices and woes in the financial sector dragged down markets. link
Joined: Oct 23, 2004 Posts: 5415 Location: New Jersey
Posted: Sun Jul 06, 2008 4:59 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
Armageddon wrote:
woes in the financial sector dragged down markets
In March, many 'smart' investment advisors said the 'worst was over' for the financial sector. Well all of those advisors are wrong.
The damage in the financial sector is not over, and may not be over for some time. _________________ It's already over, now it's just a matter of adjusting.
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