Comments on: Storm http://www.feralscholar.org/blog/index.php/2007/09/18/storm/ Making the Connections Wed, 08 Feb 2012 03:40:52 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: audrey http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-111457 audrey Mon, 26 Nov 2007 05:10:59 +0000 http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-111457 The county treasurer here is required by law to take out a classified ad listing tax foreclosure notices. So the treasurer for Wayne County (where Detroit is) did that today in the Detroit Free Press. The ad filled 121 pages with listing after listing. It's fairly overwhelming. The county treasurer here is required by law to take out a classified ad listing tax foreclosure notices. So the treasurer for Wayne County (where Detroit is) did that today in the Detroit Free Press. The ad filled 121 pages with listing after listing. It’s fairly overwhelming.

]]> By: Christina http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-93995 Christina Mon, 08 Oct 2007 03:36:31 +0000 http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-93995 Credit meltdown: think of a levee, or a dam. It's started to spring leaks, everywhere. All over the world, bankers are holding their collective breaths. They know there's really not much they can do about it. The central banks can intervene, but that's a highly limited & temporary fix that they have available. Certainly not fix bank portfolios which have no value. It's just a matter of time before the whole system falls apart. There are some amazing numbers out there, which show that we really haven't seen the biggest numbers of foreclosures yet in the U.S. The numbers of subprime mortgages will be resetting, in bigger & bigger numbers over the next few months. In March of '08, I believe something like $110 billion dollars worth of mortgages will be reset. This is when whole neighborhoods will be standing empty. Europe is in the same situation. Most vulnerable countries: Sweden, Denmark, The U.K. and Spain. France is vulnerable, but not as much as the previous 4. When it's all done, I expect houses will be worth about 1/2 of what they are now. If we're lucky. But most probably, they will probably be about 20 cents on the dollar. I have friends who think this is the "perfect" time to go buy some houses. I've been warning them it's too early. Wait about 2 years. In the meantime, we will see massive bank failures, a lot of lost money both in real estate & the stock market. Interesting thought, isn't it? That the renters would be pushed to the front of the line. Credit meltdown: think of a levee, or a dam. It’s started to spring leaks, everywhere. All over the world, bankers are holding their collective breaths. They know there’s really not much they can do about it. The central banks can intervene, but that’s a highly limited & temporary fix that they have available. Certainly not fix bank portfolios which have no value. It’s just a matter of time before the whole system falls apart.
There are some amazing numbers out there, which show that we really haven’t seen the biggest numbers of foreclosures yet in the U.S. The numbers of subprime mortgages will be resetting, in bigger & bigger numbers over the next few months. In March of ’08, I believe something like $110 billion dollars worth of mortgages will be reset. This is when whole neighborhoods will be standing empty.
Europe is in the same situation. Most vulnerable countries: Sweden, Denmark, The U.K. and Spain. France is vulnerable, but not as much as the previous 4.
When it’s all done, I expect houses will be worth about 1/2 of what they are now. If we’re lucky. But most probably, they will probably be about 20 cents on the dollar. I have friends who think this is the “perfect” time to go buy some houses. I’ve been warning them it’s too early. Wait about 2 years.
In the meantime, we will see massive bank failures, a lot of lost money both in real estate & the stock market.
Interesting thought, isn’t it? That the renters would be pushed to the front of the line.

]]> By: Timothy R. Anderson http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-93702 Timothy R. Anderson Thu, 04 Oct 2007 18:23:40 +0000 http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-93702 This is NOT the end of the credit crunch meltdown thingy ( whatever it shall be called ! ) Northern Rock could and did go to the Bank of England to cover their butts . How much can the Bank of England cover , exactly ; what happens when Northern Rock ' s peers try to do the same thing ? People who aren't customers of Northern Rock are worried , worried, worried , and with good reason. Northern Rock is not an isolated , freak-of-nature deal . It is the smallest fragment of a snowball that is still at the top of the hill . Prime Minister Brown 's decision to have the election in November 2007 is not an accident , y'all . The Tories know, and Labour knows , that this is the Titanic . I hope that things don't get to the point where the Queen of Britain needs to pawn the jewels. Not that she would. Tim This is NOT the end of the credit crunch meltdown thingy ( whatever it shall
be called ! )
Northern Rock could and did go to the Bank of England to
cover their butts .
How much can the Bank of England cover , exactly ; what happens when
Northern Rock ‘ s peers try to do the same thing ?
People who aren’t customers of Northern Rock are worried , worried,
worried , and with good reason.

Northern Rock is not an isolated , freak-of-nature deal .
It is the smallest fragment of a snowball that is still at the
top of the hill .

Prime Minister Brown ‘s decision to have the election in November 2007
is not an accident , y’all .

The Tories know, and Labour knows , that this is the Titanic .

I hope that things don’t get to the point where the Queen of Britain needs to pawn the jewels. Not that she would.

Tim

]]> By: Sam http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-92819 Sam Tue, 25 Sep 2007 19:27:42 +0000 http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-92819 Important 2006 article by Paul Craig Roberts on the class war in America. By no means outdated. http://www.counterpunch.com/roberts09302006.html Important 2006 article by Paul Craig Roberts on the class war in America. By no means outdated.

http://www.counterpunch.com/roberts09302006.html

]]> By: Steve http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-92310 Steve Sat, 22 Sep 2007 02:19:06 +0000 http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-92310 Your welcome RK My wife watches Candyland News also. Believing she is being informed. I find myself in a position now to where I have to resist the urge to pick up the TV and toss it through the window (or through the wall) after about the first 10 sec of a typical lacquer heads canned spiel. Take a deep breath, exhale, calm, relaxing, going deeper, relaxing now . . . . . . ;-) Your welcome RK

My wife watches Candyland News also. Believing she is being informed. I find myself in a position now to where I have to resist the urge to pick up the TV and toss it through the window (or through the wall) after about the first 10 sec of a typical lacquer heads canned spiel.

Take a deep breath, exhale, calm, relaxing, going deeper, relaxing now . . . . . . ;-)

]]> By: RK http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-92133 RK Thu, 20 Sep 2007 15:54:53 +0000 http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-92133 Thanks Steve! I know I shouldn't be so low-brow to condone such language here; but I laughed good, loud and hard at that last paragraph. Sounds like myself when I walk into my living room and my wife is listening to some yap crap on the Candyland News Network. I know this is a useless post but thanks for making me stir up some much needed endorphins and feel much better!! Thanks Steve! I know I shouldn’t be so low-brow to condone such language here; but I laughed good, loud and hard at that last paragraph. Sounds like myself when I walk into my living room and my wife is listening to some yap crap on the Candyland News Network. I know this is a useless post but thanks for making me stir up some much needed endorphins and feel much better!!

]]> By: Lisa http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-92132 Lisa Thu, 20 Sep 2007 15:35:57 +0000 http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-92132 Excellent interview: http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/vjUSJ.lwS8e0.asf Excellent interview:

http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/vjUSJ.lwS8e0.asf

]]> By: peggy http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-92085 peggy Thu, 20 Sep 2007 05:33:38 +0000 http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-92085 NB from Mike Whitney: "It’s better to let cash-strapped borrowers default than slash interest rates and trigger a global run on the dollar." NB from Mike Whitney: “It’s better to let cash-strapped borrowers default than slash interest rates and trigger a global run on the dollar.”

]]> By: Craig http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-92074 Craig Thu, 20 Sep 2007 02:54:40 +0000 http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-92074 <a href="http://www.nytimes.com/2007/09/19/business/19leonhardt.html?_r=1&oref=slogin&ref=business&pagewanted=print" rel="nofollow">This</a> piece does a pretty good job of explaining in concrete terms what Henry Liu refers to when he talks about wages falling behind the asset bubble. The rate cut may help the liquidity crisis in commercial paper and help a number of companies roll over their debt, but it's no solution to the housing bubble because there is no solution. A large amount of mortgage-backed paper is still junk, and these bad debts remain on the books of banks, hedge funds, and pension funds. Also, when thinking about the rate cut, it's important to remember that <i>nothing happened</i>, as in buildings didn't go up and crops didn't get harvested. In effect, it's a zero sum game, with winners and losers. The winners are borrowers, because they will now pay a lesser rate. The losers are the people who will now pay more for gas and imported goods because of the weakening dollar. This piece does a pretty good job of explaining in concrete terms what Henry Liu refers to when he talks about wages falling behind the asset bubble. The rate cut may help the liquidity crisis in commercial paper and help a number of companies roll over their debt, but it’s no solution to the housing bubble because there is no solution. A large amount of mortgage-backed paper is still junk, and these bad debts remain on the books of banks, hedge funds, and pension funds.

Also, when thinking about the rate cut, it’s important to remember that nothing happened, as in buildings didn’t go up and crops didn’t get harvested. In effect, it’s a zero sum game, with winners and losers. The winners are borrowers, because they will now pay a lesser rate. The losers are the people who will now pay more for gas and imported goods because of the weakening dollar.

]]> By: Steve http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-92067 Steve Thu, 20 Sep 2007 00:28:09 +0000 http://www.feralscholar.org/blog/index.php/2007/09/18/storm/#comment-92067 Treasury Secretary Henry Paulson told Congress on Wednesday the government will hit the current debt ceiling on Oct. 1. He sought quick action to increase the limit, saying it was essential to protect the "full faith and credit" of the country, especially at a time of financial market turmoil. The limit is $8.965 trillion. Unless Congress votes to raise it, the country would be unable to borrow more money to keep the government operating and to pay debt obligations coming due. Yes! In order for Bush’s friends to retire in absolute splendor we must raise the ceiling to 100-shit-trillion-bazillion-mega-fuck-the-future-gazillion. (or you hate America and the troops and the little chil’ren and Terri Schiavo and are probably a fag who doesn’t go to church because you smoke weed and drive a commie Prius) Treasury Secretary Henry Paulson told Congress on Wednesday the government will hit the current debt ceiling on Oct. 1. He sought quick action to increase the limit, saying it was essential to protect the “full faith and credit” of the country, especially at a time of financial market turmoil.

The limit is $8.965 trillion. Unless Congress votes to raise it, the country would be unable to borrow more money to keep the government operating and to pay debt obligations coming due.

Yes! In order for Bush’s friends to retire in absolute splendor we must raise the ceiling to 100-shit-trillion-bazillion-mega-fuck-the-future-gazillion. (or you hate America and the troops and the little chil’ren and Terri Schiavo and are probably a fag who doesn’t go to church because you smoke weed and drive a commie Prius)

]]>