Posted on 09/18/2008 12:38:31 PM PDT by politicket
NEW YORK (AP) -- Wall Street surged higher Thursday, with the Dow Jones industrials up more than 400 points after a report that the federal government is considering creation of a repository for banks' bad debt. CNBC said Treasury Secretary Henry Paulson is considering creation of an entity like the Resolution Trust Corp. that was formed after the failure of savings and loan banks in the 1980s.
(Excerpt) Read more at biz.yahoo.com ...
http://www.youtube.com/watch?v=6G3Qefbt0n4
It is an 8 part video of Peter Schiff speaking to a Mortgage Association in late 2006. His comments and forecasts were spot-on.
The whole thing takes about one hour to view, but I would highly recommend it for all who want to understand where things are at right now.
If you don’t own and control an entity you should. It’s the American way.
I hate government intervention as much as anyone, but we basically have two choices: assume the debts, or let them be deflated away.
What you have to remember is that we are dealing with panic here. These mortgages are backed by real property so the down-side risk is minimized. The problem is that people can’t refinance (even though mortgage rates have come down) because the market has no liquidity. Because they can’t refinance, they are stuck in high rate mortgages that they can’t afford leading to more foreclosures.
The key here as always in a business cycle is “knowledge” and “confidence”. The absence of both is a recipe for another Great Depression.
May you live in interesting times....
The Chinese have our gonads in their hands. They own so much of our monetized debt, they have essentially a majority stockholder position on our economy. They are calling in the note.
Take credit for it, of course.
From the article:
(snip)
“If there’s an RTC-like entity, “it’s going to take a lot of the bad debt off the balance sheets of these companies,” said Scott Fullman, director of derivatives investment strategy for WJB Capital Group in New York. That would alleviate many of the pressures causing the credit crisis, he said, and open up the credit markets again.”
(end snip)
In other words, it takes it off the balance sheets of these companies that are failing and puts it in the ‘balance sheet’ of the federal government.....leaving them free to start the process all over again with ‘new credit’?
I don’t know much about the financial industry, but this looks like insanity!!
You are so right!:
1 Timothy 6:10 For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs...............
Why did the stock market stage such a rally today right after international backs injected close to $300 billion dollars into the world economy last night?
The market should have been full of people trying to sell as fast as possible, but instead, everyone dives in thinking that we have reached market bottom and they don't want to be left out of "what is theirs".
Scary times...
It feels like an Ayn Rand novel. The looters, in bed with the government, are running the show.
I have some seen some freepers do support nationalization.. All in the name of protecting jobs.
da chineze?
of course!! (eye roll)
And those of us poor slobs that have bought our homes the right way,pay our bills and are contributing members of society are going to be taxed at a higher rate to ‘pay for it all’!
I don’t know about you folks, but I am starting to get pissed off big time!!
These POS. What next a trust for Student loans, credit card debt? These Mother...
Don't worry, the DOW will shave off 300-400 tomorrow. Bet on it. Markets go up, markets go down...
shorts covering, taking their profits.
You’re making way too much sense for this thread. Stop it right now!
We now return to our regularly scheduled doom-saying.
No my FRiend, you're missing the entire point. As I stated on a previous thread, the mortgage problem is just the short fuse on an enormous stick of dynamite. The dynamite is composed of the $500 trillion+ notional dollars of the derivatives market. THAT is what is making the international markets need Depends. It is why lending and borrowing between international institutions has dried up.
The Feds needed to do something to keep the derivatives market from exploding. They think that by throwing away our U.S. Constitution and instituting Socialism they can "fix" the problem.
This will just cause the problem to get worse! Asia (mainly China) has their hands around our throats due to the tremendous amount of our IOU's that they're holding. Our problem is that we don't export anything except Treasury bills, while importing a bunch of garbage that we don't need.
I don’t think they think they are going to destroy the country. They think they’re improving it with a left wing fascist state.
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