Posted on 10/25/2008 7:08:19 AM PDT by BGHater
Talk about a giant sucking sound...
Overseas?
What's happening to M1?
I've been wondering if that could have anything to do with this mess...
Or maybe the tinfoil chapeau's just on too tight.
Anyone still long in the market is nuts. I have a really bad feeling we’re going to 4-5k in the Dow when this is all said and done. When you take the surging dollar (which hurts profits of global companies in the Dow/S&P), the financial profits 0 or negative, and energy profits should be plummeting after this quarter, added with tons of layoffs and the debt bubble deflation — we are no where near the bottom.
I don’t think. Unless Bawney Fwank and/or Chris Dodd know how to hack.
My prediction ... Expect to be at a bloody war for our very survival in the very near future.
And doesn't seem to me like the story got much play in the news.
for all these billions one manager politico lobbyist will not see a confine of the jail cell
But sheeple er brother komrades get to pay for the motherland
You know, you know, no matter what, this monster is going to explode into inflation, or deflation and a world wide Depression that will make 1929 look like good times.
Everything I have heard, is along the lines of do what you must, but avoid deflation.
Treasury and the Fed have been putting out fires for a year, saying, “Aye, aye Captain. Everythings fine”. Well, it isn't. It's worse.
Nonsense—the financial crises was the result of overleveraging by our largest financial companies and obsessive levels of debt by the american consumer funded by credit cards and predominantly HELOCs. The debt bubble burst and now the world is going to pay the price. When someone making $30k a year qualifies for an $800k house with 0 down and doesn’t even have to pay the amount of interest accrued off the teaser rate—you know we are just leveraging up to the hilt. The US will end up far better than many other countries. Russia, most of Eastern Europe, and Iceland are on the verge of defaulting. Australia, Mexican, New Zealand, and European currencies (and more) are plummetting to levels in just a couple of months that would otherwise take decades.
You are probably right about a war at some point but I don’t know of anyone but China or Japan with the wealth to do so.
I’m 100% in short term US treasuries at the moment with a very small position in silver and gold coins (<3%). I don’t think we can jump-start inflation at the moment. Wages are decreasing, wealth is decreasing ($3 trillion just this month in stocks alone) and commercial paper debt is decreasing. We’re going to see some very rough times ahead of us. The VIX index is still absurdly high to be in stocks right now. We’re going to see violently wild swings in both directions for the immediate future. I’ll start to nibble on small positions in stocks around 7200 in the dow or 750 in the S&P but I if it breaks through its 2002/3 lows, look out below!
It is all probably going into the 0bama election campaign fund. ;)
The dollar is climbing in value at just the wrong time. The cost of our exports is surging, and it’s killing our numbers overseas and tipping the balance of trade even further in China’s direction as Americans go lower and lower cost in their purchasing decisions. The Yuan is crashing, of course. This currency crash, ironically, means they preserve a disproportionately large piece of the trade pie as everyone sees huge export declines.
It’s laughable that we fought about or thought the bailout package was bad when the FED lent more money than that this week alone.
They’re probably using the 700 Billion to provide backdoor price supports for US stocks, IMO.
The ammount of money being injected into the US by the FED is going to trigger huge rounds of inflation. Monetary policy usually takes 12-18 months to really work its way thru an economy so you can see the full results, so we’ve ‘baked in’ a lot of pain for the foreseeable future.
What’s amazing in all of this is that the Eurosocialist solution, which is total bank nationalization, has been imposed on the US by Wall Street! When Paulson was going with the ‘blank check’ plan it brought the whole system right to the brink of total collapse ... the market only pulled back when Paulson announced they we were falling in line with Europe and doing whatever they did. “Co-ordinated Response” is the buzzword.
Expect a single world currency out of this mess. The Eurozone, Asia and even Canada are calling for a new Bretton Woods, fixed currency situation, and broad international controls of all finance. With big inflation coming everywhere, the pain will create a lot of political support to ditch the greenback. The amount of debt tied to the greenback might make ditching it a good idea.
Join the club. Paulson & Bernanke, Inc pour money in banks, banks buy Treasurys. And around and around.
Link.
Nothing else is really safe at the moment. Not like I can park a ton of cash at my house.
“The Yuan is not crashing”
Yes, it is. All currencies, including the greenback, are crashing. They’re doing it in unison, in the middle of worldwide asset deflation and a commodity crash, so the combination of the 3 is keeping the price pyramid in check for the time being.
The Chinese lifted the ceiling on Yuan valuation almost 2 years ago and have been allowing the Yuan to drift upwards since.
The point I was making was that US exports are getting more expensive in the middle of a worldwide recession. Demand is vanishing at the same time we’re effectively raising prices. That’s a catastrophe.
You were one of the people who used to fill up housing bubble threads with denialism. I remember having a ‘conversation’ with you where you insisted OTC derivitives were harmless and a worth a tiny amount of money.
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