Free Republic

In mid-2004, John and Karen Philbrook bought a home in Sacramento’s North Highlands neighborhood, when buying a house seemed like a sure ticket to security. They opted for an interest-only, adjustable-rate mortgage and counted on the value of their house continuing to rise as a way to build up equity. ...[snip] In 2004, Karen and John realized their dream by buying a house in the North Highlands section of Sacramento that’s situated several miles northeast of downtown. It’s a small, three-bedroom bungalow, with a brick chimney running down its wooden exterior. With John’s two jobs and Karen’s at Safeway, the...

In March 2005 at their summit meeting in Waco, Tex., President Bush, President Fox and Prime Minister Martin issued a joint statement announced the creation of the “Security and Prosperity Partnership of North America” (SPP). The creation of this new agreement was never submitted to Congress for debate and decision. Instead, the U.S. Department of Commerce merely created a new division under the same title to implement working groups to advance a North American Union working agenda in a wide range of areas, including: manufactured goods, movement of goods, energy, environment, e-commerce, financial services, business facilitation, food and agriculture, transportation,...

MASSIVE WORLD SPECULATION DOMINOS by Christopher Laird PrudentSquirrel.com http://www.prudentsquirrel.com/ March 20, 2006 Last year, many Asian and other foreign stock markets went up as much as 50%. There is a synchronized world housing bubble that is a very analogous follow on bubble from the Japan collapses in the early 90’s, and the Fed loosening following 9-11. We had the tech bubble crash in 2000/1, and a have now a general US stock bubble that is yet to really pop. Right now, we are about at the same DOW level before the market collapses in 2001/2. There is a massive US...

Now comes the hard part for holders of certain loans You know those cheap mortgages that everybody's been getting to speculate on housing? Where somebody at the other end of a toll-free phone will lend you $200,000 and your payment will only be $678 per month? Lenders who started making those teaser-rate loans a few years ago are getting ready to charge real-world payments on them. Starting in 2006 and accelerating into 2007, as much as $2.5 trillion worth of the fancy mortgages called "hybrids" are coming to the end of the free-lunch part of the deal. And while prices...

Among the strange delusions and hallucinations gripping the body politic these days is the idea that the so-called global economy is a permanent fixture of the human condition. The seemingly unanimous embrace of this idea in the power circles of America is a marvelous illustration of the madness of crowds, for nothing could be farther from the truth. The global economy is, in fact, nothing more than a transient set of trade and financial relations based on a particular set of transient, special sociopolitical conditions, namely a few decades of relative world peace between the great powers along with substantial,...

Giant in declineBy Marshall Auerback In his 1849 novel Les Guepes, Alphonse Karr penned the classic line: "The more things change, the more they stay the same." In the case of the United States in 2005, however, the opposite might be true: The more things stay the same, the more they are likely to change ... for the worse. In that regard, compiling a list of potential threats to the US this year has a strangely deja-vu-all-over-again feeling. After all, such a list would represent nothing more than a longstanding catalogue of economic policymaking run amok. Virtually the same list...