Posted on 02/23/2009 9:23:23 AM PST by quesney
Red lights are flashing in the credit market again.
The revival in risk appetite seen at the start of the year is fading as long-awaited government bailout plans have failed to materialise. The common thread is renewed pressure in a banking system already severely weakened by 18 months of financial markets turmoil. Governments are running out of time to stop the rot before the credit crisis takes another lurch for the worse.
First, consider the spread between U.S. dollar Libor, the rate for interbank lending, and the overnight indexed swap rate, which captures expectations for official interest rates. The spread narrowed sharply from October's peak of 366 basis points to a low of around 90 basis points in January. But now the spread has risen again to back over 100 basis points, amid renewed fears over bank funding and a further loss of trust in the system. Pre-crisis the typical spread was under 10 basis points.
Second, look at the Markit LCDX index of default swaps on 100 U.S. leveraged loans. The index rallied in January, but has now returned to 72.5% of face value, close to the record low seen in December. Auctions to determine swap payouts are producing very low indicative recovery rates: 40% versus an average recovery rate over the past 20 years for bank loans of around 81%. Low recoveries will hit loss reserves hard.
Third, spreads on nearly all tranches of the CMBX index, which tracks default swaps on 25 U.S. commercial mortgage-backed securities, have reached new record wide levels in February after a January rally. Moody's on Feb. 5 said it was considering cutting ratings on $302 billion of CMBS due to falling commercial property values and rising delinquencies.
(Excerpt) Read more at online.wsj.com ...
Market return todate since Nov 4, 2008.....-25.20%
The WSJ is correct. The Dow will continue to crash and my IRA and investments will bankrupt me though I have paid off my home, have no debt and worked hard from age 12 to 70. But, this crowd wants to rescue the losers, the uninformed, the non-productive. And so it goes as American becomes a Third World nation. But the dumbed down illiterates will keep electing liberal Dems until we and Chavez will look just alike.
“The best argument against democracy is a five-minute conversation with the average voter.”
Winston Churchill
Μολὼν λάβε
As soon as Joe the Plagiarist started talking in preparation for Big O, the thing started falling hard. Honestly you’d think these people would get it after awhile, but they just can’t help wanting to hear themselves speak. They’re just THAT IMPORTANT.
America as both an ideal and an entity has been for too long the dog to which the world's ticks have attached themselves. This goes double for America's own citizens, and at least triple for it's current crop of "leaders."
They have enjoyed the meal and the ride but they have bled their life source dry in the process. Now those same parasites think it is "kick-the-dog" time? They'll turn to and then on one another soon enough. It will not be pretty.
I am evermore convinced that someone hit civilization's rewind button and it we have spun back to Hobbe's Leviathan:
Whatsoever therefore is consequent to a time of Warre, where every man is Enemy to every man; the same is consequent to the time, wherein men live without other security, than what their own strength, and their own invention shall furnish them withall. In such condition, there is no place for Industry; because the fruit thereof is uncertain; and consequently no Culture of the Earth; no Navigation, nor use of the commodities that may be imported by Sea; no commodious Building; no Instruments of moving, and removing such things as require much force; no Knowledge of the face of the Earth; no account of Time; no Arts; no Letters; no Society; and which is worst of all, continuall feare, and danger of violent death; And the life of man, solitary, poore, nasty, brutish, and short."
While it is true that later in Madison's lief he is oft quoted as indicating that, for example, having paid Chaplains, elected by a majority of the hosue and senate, in his mind violated the constitution, it does not change the fact that earlier, both during and before the wrtiting and ratifying of the constitution that Madison spoke out strongly regarding the indispensability of religious principle as a foundational framework of good government.
The quote above is attrinuted to June 20, 1785. Here are others from Madison that refute what the liberal educators and revisionists say that that quote does not resemble other Madison quotes. On this point they are absolutely wrong.
James Madison said in 1788:
The belief in a God All Powerful wise and good, is so essential to the moral order of the World and to the happiness of man, that arguments which enforce it cannot be drawn from too many sources nor adapted with too much solicitude to the different characters and capacities to be impressed with it.On March 4, 1809, President James Madison explained in his Inaugural Address:
We have all been encouraged to feel in the guardianship and guidance of that Almighty Being, whose power regulates the destiny of nations.In 1785 James Madison explained:
"It is the duty of every man to render to the Creator such homage.... Before any man can be considered as a member of Civil Society, he must be considered as a subject of the Governor of the Universe.James Madison, who made copious notes in his personal Bible, wrote in Acts Chapter 19:
"Whilst we assert for ourselves a freedom to embrace, to profess, and to observe the Religion which we believe to be of divine origin, we cannot deny an equal freedom to those whose minds have not yet yielded to the evidence which has convinced us. If this freedom be abused, it is an offense against God, not against man: To God, therefore, not to man, must an account of it be rendered.
"Religion, or the duty we owe to our Creator, and manner of discharging it, can be directed only by reason and conviction, not by force or violence; and, therefore, that all men should enjoy the fullest toleration in the exercise of religion according to the dictates of conscience, unpunished and unrestrained by the magistrate, unless under color of religion any man disturb the peace, the happiness, or safety of society, and that it is the mutual duty of all to practice Christian forbearance, love and charity toward each other."
Believers who are in a State of Grace, have need of the word of God for their Edification and Building up therefore implies a possibility of falling. v. 32. Grace, it is the free gift of God. Luke. 12. 32-v.32. Giver more blessed than the Receiver. v. 35. To neglect the means for our own preservation is to Tempt God: and to trust to them is to neglect him. v. 3 & Ch. 27. v. 31. Humility, the better any man is, the lower thoughts he has of himself. v. 19. Ministers to take heed to themselves & their flock. v. 28. The apostles did greater Miracles than Christ, in the matter, not manner, of them. v. 11James Madison, wrote on November 9, 1772 to William Bradford:
A watchful eye must be kept on ourselves lest while we are building ideal monuments of Renown and Bliss here we neglect to have our names enrolled in the Annals of Heaven.
I find that the original quote is in fact consistant with Madison's other wrttings at that time...irrespective of how his views may have changed years later, and that therefore the June 20, 1785 quote is very likely to be authentic. It's been quoted for a long time, and cited to that date. It may well not have been writtenm down, so proving it either way will be difficult if not impossible. But his other quotes in that time frame tell me that these were his sentiments.
!
James Madison, Memorial and Remonstrance against Religious Assessments, 20 June 1785
http://press-pubs.uchicago.edu/founders/documents/amendI_religions43.html
_______________________________________
Strongly guarded as is the separation between Religion & Govt in the Constitution of the United States, the danger of encroachment by Ecclesiastical Bodies may be illustrated by precedents already furnished in their short history.
James Madison, Detached Memoranda ca. 1817
--http://press-pubs.uchicago.edu/founders/documents/amendI_religions64.html
You are right. Look at Michigan. The state has been in the tank for years yet they keep electing criminals as Mayor of the state’s biggest city and a liberal Governor and two very liberal US Senators.
Thomas Jefferson never said that.
When speaking of the fundamental values underlying religion of his day, where those religions were not state religions but operated by the people themselves, IMHO Mdison was just as clear on his advocacy.
It is nothing more than reparations for slavery.
There I said it
All this points to the IGNORANT people who are ruining this Country.
Send them a copy of The Federalist Papers and tell them to actually READ it.
http://patriotshop.us has them at a good price and you’ll help a good cause.
http://www.markturner.net/2008/10/02/jeffersons-bogus-bank-quote-in-the-wild/
REad down.
“Yes, Mike … how did he know? How did Jefferson know about inflation when the word wasn’t even used until he was long gone? Jefferson really was a man ahead of his time!”
http://www.jamesmaurer.com/thomas-jefferson-quotes-and-banking.asp
>>The truth is, words such as Inflation (originated around 1864) and Deflation (originated in 1920) did not even exist during that time period.<<
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.