They will collapse, but possibly after having a fake money-fueled orgasm.
Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
Yah,right! (SARC)
I think if the bamster coes back and signs legislation for the keeping the tax cuts intact, that WILL move markets...and have businesses borrowing to some extent.
I'm running out Monday for a 2 million dollar loan for a chain of worm farm stores. I got the idea from the movie Dumb and Dumber. After all, two years left with Obama in the White House, it's all good times from here on out.
Like this country needs more debt
They make it sound like a colonoscopy!
Yeah all those millions and millions who sold their homes at a loss, were foreclosed on, declared bankruptcy or walked away.....yeah they are going to go get a brand spanking new loan to play the scam again.
And then there are the tens of millions who have diligently continued to pay their mortgage while the value of their home has fallen and is under water. Will the banks refi or give a new loan to a home that is worth 25% - 30% less than it was just a few years ago?
I don’t think so.
I think a return to predatory lending and rampant loan shark brokers is going to do nothing but infuriate people even more.
America is angry and will stay that way until they get real justice as to what the banks and Fed have done to them.
“The U.S. is on the brink of a massive credit explosion, . . .”
Thank goodness. We’ve never had one before and it’s a surefire way to guarantee long term prosperity.
I would believe Deutsche Bank WHY?:
UN Secretary General Ban Ki-moon appointed the panel, called the High-Level Advisory Group on Climate Change Financing, in February. It’s led by Stoltenberg and Ethiopian Prime Minister Meles Zenawi. The 21-member group also includes Soros, Summers and Deutsche Bank AG Vice Chairman Caio Koch- Weser.
(Bloomberg)
Yeah right.
The game is out in the open boys.
This is nonsense. There’s no shortage of money to lend, simply a shortage of those willing to lend it and those willing to borrow it.
Only a fool would be willing to take risks with Marxists in charge of the economy. That’s all that’s going on. Everyone is just sitting tight, trying to hold on to what they have and trying to keep it from being stolen and “redistributed”.
That’s what the “loss of confidence” is all about: trying to keep one’s hard earned cash from being stolen by the Obammunists. Trying to avoid an environment in which the Obammunists govern by fiat, change the rules and regulations daily, change taxation policy daily, heap job-killing burden after job-killing burden on the productive, steal bondholder’s rights on a whim, bailout failing union-dominated businesses, eschew the rule of law, ignore the Constitution, etc., etc.
Nothing is going to change and nothing is going to get better until the Marxists are run out of government lock stock and barrel. That can’t happen for another two years, and if it doesn’t happen then, why all you need to do is read Ayn Rand’s “Atlas Shrugged” to find out what’s going to happen.
Well the banks are trying to lend, I’m getting monthly letters from BofA and CapitalOne offering me 0% money for a year or so on balance transfers and that’s new. Of course they want their initial 3 or 4% fee which still gives them a tidy profit on the 0% money they get from the FED.
The money from the first two QEs was held back. Duh.
On another note, the hedge funds are starting to blow up, Phil Falcone’s multi-billion hedge, Harbinger.
The debt liquidation continues.
So let’s see if liquidity pumping can overcome debt liquidation.
It’s anybody’s horserace at this time.
If you have no debt and are sitting on cash, just pass the popcorn and watch.
Historically I believe, no country has managed to contain the genie of inflation once it is out of its lamp.
Asset prices, i.e. homes will rise in value but so will the price of gas, food and all our imported clothing and electronic goodies.
Reinflating like this is like chopping up the dining table and chairs and burning them on the living room floor to heat your house in a cold winter snap.
“the roof, the roof, the roof is on fire,
We don’t need no water, let the m-——f-—— burn”
-Esteemed musicologist and Fed consultant, the honorable George Clinton.
I want summa what they’re smokin’!!!!!
If we were domestic energy producers...and the cost of energy wasn’t inverse to the value of the dollar..they might have a point.
However...every time the dollar goes down...thereby increasing overseas demands for our exports, and potentially increasing employment at home, the cost of oil rises...kneecapping the benefit of a weak dollar.
Somebody at Deutchebank is either stupid...or really wants out of a long dollar position......
Lavorgna, On the risk of further dollar devaluation from QE2...
‘We calculated for every 1% movement of trade weighted dollar is a $3B tax hike to consumers. We don’t need a lower dollar here.’
Once bitten twice shy here. I cannot with any amount of certainity believe that I will have the profits in the future to pay any debt accrued today. Input costs are going UP. Can I pass those costs along to my customers and will there be any capital left over for growth?
They will collapse, but possibly after having a fake money-fueled orgasm.
We have lost any desire to borrow *any* money at *any* interest rate...
These SOB's can keep their stinking money.
Yes. People have realized that the level of debt they have is to high in a bad and unstable economy, so they are trying to dig themselves out of debt and get on more solid ground. This leads decreased demand, and prices drop somewhat in response.
So our federal government steps in and says we can't be having deflation! We have to increase spending! So they once again devalue the US dollar more making it in the short term harder for people to dig themselves out of debt.
It makes it easier to borrow money and easier to pay it back later because inflation means the dollars you are paying the bills with a couple years from now will be worth less.
However, Americans are already in buried in debt. If you keep making it easy to borrow even when people are too far in debt you help the economy in the short term, but it creates a bubble which comes back to haunt you.
This is the same thing that the Clinton and Bush administrations did with mortgage rates. Clinton did it because he wanted the larges economic expanision in history to be his legacy. Bush continued it because between 9/11, business accounting scandals, and recovering from the dot com crash it was the only thing keeping us out of a recession.
Now Obama needs to show some economic recovery pretty damn fast if he wants reelected. The policy may cause more harm than good in the long run, but he has to get reelected before he needs to worry about that.
The government needs to quit pushing more credit and devaluing the dollar and instead let us start digging ourselves a bit out of debt so we are on more solid footing.
Yes, it means slow growth for a while longer. Yes it means economic pain in the short term. We can't put off paying the bill for overspending forever.