Like the illusion of Wall Street, with its vast and powerful investment banks, now shuttered, China too is an illusion perpetuated by the Globalists that gave us the 15,000 mile Caesar salad, poisoned cat food and lead based paint on babies' pacifiers. Like the illusion that money would come from thin air to always push housing prices higher, China has spent a generation pursuing its illusion. Pursuing an unattainable dream to be like the West, while 6000 years of its carefully shepherded top soil blows into the sea.
JPMorgan Chase Chief Executive Jamie Dimon said simply because some problems in the credit markets have been resolved does not mean market conditions won't get worse.
"I do think we have some very serious issues to face," he said. "Things could actually get worse."
Dimon, speaking at a mortgage lending forum sponsored by the Federal Deposit Insurance Corp, also said that investment banks should not be considered too big to fail...
Well, duh! We could've told you that a long time ago, Jamie.
Quote:
Dimon said the future of the U.S. economy is bright...
ROFLMAO!!! _________________ "Thank you for attending the oil age. We're going to scrape what we can out of these tar pits in Alberta and then shut down the machines and turn out the lights. Goodnight." - seldom_seen
Posted: Tue Jul 08, 2008 9:43 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
Quote:
A mortgage rescue plan to save hundreds of thousands of homeowners from foreclosure drew overwhelming Senate support, inching toward passage despite Republican objections.
The Senate voted 76-10 Monday to advance the bill, a broad array of housing measures including overhauls of the Federal Housing Administration, the Depression-era mortgage insurer, and government-sponsored home loan giants Fannie Mae and Freddie Mac.
Its centerpiece is a new $300 billion FHA program to allow debt-ridden homeowners who are currently too financially risky to qualify for government-backed loans to refinance into safer, more affordable mortgages.
The measure is on track for passage by an overwhelming margin, possibly by week's end. It has survived several test votes in the Senate, repeatedly demonstrating that there's enough support for it to override President Bush's promised veto.
The cashout-refinance-zero-down-flipper-bankster inflationary bailout is coming down the pike.
Posted: Tue Jul 08, 2008 10:13 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
The promised veto of this housing deadbeat rescue bill, and the appointment of John Roberts as chief justice of the SCOTUS, are the only two actions of Bush's I have liked since he has been in office.
Joined: Dec 07, 2005 Posts: 2017 Location: Australia
Posted: Tue Jul 08, 2008 10:44 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
A reminder from Ted Butler on the Silver short selling farce on COMEX. With the size of the short position one has to wonder what will happen if/when the long hands ask for delivery. This game can only work as long as contracts are settled in cash;
Quote:
The documented evidence can be seen, once again, in the most recently released Commitment of Traders Report (COT). For positions held as of July 1st, the commercials, as a group, increased their net short position by 35 million ounces on the recent $2 rally. The eight largest traders accounted for most of that amount, increasing their net short silver futures position to a two-month high of 70,728 contracts, or more than 353 million ounces. That’s the equivalent of more than 196 days of world mine production. No other commodity comes close to that.
The eight largest COMEX silver traders now hold more than 79% of the net short position of the entire COMEX silver futures market (all spreads removed). This is a level of concentration that, in and of itself, is unquestionably manipulative.
Quote:
At 353 million ounces, the documented net short position of the eight largest COMEX traders is almost equal to all the known silver in the world.
Bold is my emphasis. (Most people don't realize that a majority of the silver ever mined has been used up and only a portion exists as investmetnt silver)
Quote:
In addition to the documented concentrated short position on the COMEX, strong circumstantial evidence has surfaced of a new unreported silver short position in the big silver ETF, SLV. In an article three weeks ago, "A Hidden Silver Default?," I speculated that unreported naked short selling of SLV shares amounted to as much as the equivalent of 50 million ounces of silver, or more. In the past three weeks I would estimate as much as the equivalent of ten million additional ounces have been shorted. I base my figures on several facts.
Read his article for analysis. This is however a good reason to stay away from ETF's. Gut feeling and logic suggests there should be defaults. Holders of paper promises may be left empty handed.
Ted Butler _________________ It's not a bailout, it's a buy-in" - Nancy Pelosi
Posted: Wed Jul 09, 2008 9:52 am Post subject: Re: Housing & Economic Collapse - In Progress - #2
Quote:
Van Hoisington and Dr. Lacy Hunt: "Over the past fiscal year, holdings in the stock market, as measured by the Wilshire 5000 Stock Index, lost more than $2.1 trillion. Simultaneously, the 15.3% contraction in the Case Shiller Home Price Index suggests the wealth loss in value of household residences was a staggering $3.1 trillion. Without including the negative wealth impact for declining prices of automobiles and other durables the total wealth loss was approximately $5.2 trillion. Obviously, the sum of dollars being erased from our economic system has overwhelmed the amount of dollars being increased by inflation by a factor of more than 14 to one. Thus, once again, the bond market had it right--deflation is in ascendancy. Treasury bond yields fell, and they will continue to trend lower, creating an even more profitable environment over the next four quarters for long-term Treasury bond holders."
Fannie and Freddie now hold or guarantee 70% of the $10 trillion residential mortgage market. With a 15.3% decline in property values occurring their book is losing $1.1 trillion per year. According to Paulson on Bloomberg yesterday the FED will be pulling the Treasury into this mess to help bail out the financials.
Who is going to bail out the Treasury after they do? With 70% of Freddie’s and Fannie’s paper now held by foreign central banks and SWF, coming up with lenders to risk a few more $trillion on two decisively failed and poorly managed institutions is not very likely.
Quote:
Federal Reserve Chairman Ben Bernanke said on Tuesday the U.S. central bank may keep an emergency lending facility for big Wall Street firms open past year-end while it seeks to restore financial market stability.
Mortgage financiers Fannie Mae and Freddie Mac are adequately capitalized and continue to be active in the mortgage market, said James Lockhart, director of the Office of Federal Housing Enterprise, which regulates the two enterprises.
This is now about maintaining an illusion. The FED is no longer a viable central bank with enough resources to stop this avalanche.
With 1/2 $trillion in Option Arms about to blow, Bankers had better start carrying a change of underwear to work!
Quote:
Mick P: "So here we are today, with Bankers wearing brown trousers to work to disguise the fear, the Primary Brokers looking directly into the regulatory future they dread and Hedge Funds hoping they have enough credit available to stay afloat. The actions taken by the Fed, Bank of England et al are now seen as "holding operations" allowing current practises to continue until the dawning of a new way, putting a line under the mess with a new paradigm that will define the next chapter in capitalism."
"If Fannie or Freddie failed, it would be far worse than the fall of [investment bank] Bear Stearns," says Sean Egan, head of credit ratings firm Egan Jones. "It could throw the economy into depression or something close to it."
Joined: Dec 02, 2005 Posts: 6755 Location: Oil-addicted Southern Californucopia
Posted: Wed Jul 09, 2008 1:48 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
Eli wrote:
Just read this article.
Quote:
The doomsday scenario could cost taxpayers more than $1 trillion, says the S&P report. The report went so far as to say that a government bailout of Fannie or Freddie could force the agency to lower its rating on the creditworthiness of the United States.
_________________ "Thank you for attending the oil age. We're going to scrape what we can out of these tar pits in Alberta and then shut down the machines and turn out the lights. Goodnight." - seldom_seen
Posted: Wed Jul 09, 2008 2:38 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
Eli quoted:
Quote:
Clearly, investors remain concerned. Credit default swaps - a kind of insurance against the possibility of Fannie (, ) and Freddie (, ) defaulting on their corporate bonds, are at their most expensive levels in 14 weeks; both companies are expected to report steep losses for the second quarter; and their main business, mortgage securitization, is under pressure as home price values decline and foreclosure numbers rise.
With the world sitting on a quad-trillion $s in derivatives, a major counterparty default by or against F&F could bring the whole system down.
It would take the next 200 years just to figure out who owes who. Untold trillions of digi-dollars would just go “poof”. The entire banking/financial system would come to a complete stop - for ever!
Joined: Mar 18, 2005 Posts: 2691 Location: Minnesota
Posted: Wed Jul 09, 2008 2:58 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
Can you imagine if nobody knew who owes & who owns? Nobody would sell you anything for cash, check or credit card. There would be no reason to go to work...how could they pay you? (in chickens?).
MAN that would be ugly!!! Doctors, firefighters, police would all suddenly "walk off the job"...even the dudes at the water treatment plants wouldn't come in to work.
Posted: Wed Jul 09, 2008 3:16 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
DOW down 237 (11,147)
Quote:
Weakness was broad-based, but the thrift and mortgages group (-11%) was hit especially hard Frannie (FNM 15.35, -2.27) Freddie (FRE 10.38, -3.0 got clipped. Traders are concerned about the current capital position of both companies.
This is getting close to the plunge? Technical traders view 10,983 as the last strong support until 7,400. 7,400 would unravel the entire monetary/financial system. This isn’t 1973.
Article about the new "Middleclass Homeless." Scary, scary stuff.
Quote:
"...When Harvey's job as a 37,000-dollar-a-year (23,600 euros) notary evaporated in the US sub-prime mortgage crisis, she found herself penniless and destitute in a town where the average price of a home is one million dollars.
Harvey's nightly "home" now is the quiet carpark of the historic Santa Barbara Mission, one of 12 sites around the town that is part of a safe parking program run by a non-profit outreach group, New Beginnings.
According to Michael Stoops, executive director of the Washington-based National Coalition for the Homeless, Harvey's experience is not exceptional.
"We are receiving reports from different agencies and individuals in the field that it is becoming more common," Stoops said. "It's definitely a trend.
"For people who lose their homes or their jobs their worst nightmare is to end up living on the streets, literally homeless. So for many it is preferable to live in their vehicles."
In Santa Barbara, the traditional middle-class has all but disappeared as property prices have soared, according to Gary Linker, executive director of New Beginnings.
Joined: Jun 18, 2005 Posts: 3978 Location: In a van down by the river
Posted: Wed Jul 09, 2008 3:42 pm Post subject: Re: Housing & Economic Collapse - In Progress - #2
There are so many Bank owned properties around the country it is frightening.
The Banks themselves are underwater and under capitalized. We haven't even really gotten rolling yet.
edit just read something interesting over at the ticker forum, Indy Mac has 16.5 billion of FDIC insured accounts. The FDIC only has around 50 billion to its name. One bank could wipe out 20% of the FDIC.
U.S. stocks tumbled, sending the Standard & Poor's 500 Index into its first bear market since 2002, on growing concern the biggest mortgage finance companies may not weather the housing slump.
Fannie Mae and Freddie Mac led financial shares to their biggest decline in six years after Fannie's borrowing costs surged on concern it won't be able to fund its business. Cisco Systems Inc. dropped to the lowest level since September 2006 and Intel Corp. slid to a six-month low on analyst predictions that a slowing economy may hurt sales. Bank of America Corp. and Citigroup Inc. fell as Credit Suisse AG said 40 percent of the biggest U.S. lenders may need to cut dividends or raise more capital.
_________________ "Thank you for attending the oil age. We're going to scrape what we can out of these tar pits in Alberta and then shut down the machines and turn out the lights. Goodnight." - seldom_seen
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
News
Discussions
Resources
Members
Forum FAQ
Search
Usergroups
Profile
Log in to check your private messages
Log in
got clipped. Traders are concerned about the current capital position of both companies.
