'Financial Terrorism!'

I have picked up many of Chomsky's most popular and recent books. He is incredible. I wish I could study linguistics and political science under him.

Oh, jeta (must be what you drive)

Why do you bother?

There is a huge problem with the average person and their lack of understanding as to what is going on in the stock market, the TARP and the economy as a whole. Your posts illustrate that succinctly. For instance, you lay blame on “Bush and his Posies,” but that again shows a bit of naiveté. The roots of the housing bubble were planted during the Carter Administration and then exacerbated by the Clinton Administration, i.e. Greenspan with rates at 1% and Clinton mandating that Fannie Mae and Freddie Mac (at the behest of Liberal Groups like Acorn (where Obama started – YIKES) pushing to increase home ownership in the US from the 60% range to the 70% range. These pressures lead to a huge spike in the Subprime Mortgage Market.

As an attorney and California Mortgage Broker and I’ve seen it all. Many of these ‘buyers’ should never have been offered loans… they were and are Subprime borrowers for a reason… most had no financial discipline, thought their house was an ATM machine and never had any skin in the game. You wouldn’t believe how many people would call me every couple of months to do a cash out refi to support their horrid lifestyle of living well beyond their means.

Of course, there are a few mortgage brokers out there who lack scruples and took advantage of borrowers, but my experience is that there are far more irresponsible ‘home owners’ that suckled from the teat of the housing boom and now have more options (walk away, renegotiate, get federal help) than a responsible A-paper borrower. To me THAT is where the BS lies…

Granted, many on Wall Street have made a fortune. However, that just shows how prevalent greed is in our society. From the politicians to Wall Street to the individuals who took out a 100% Financed Stated/Stated Option Arm and made the minimum payment every month and continued to defer the interest. Heck, I knew of people who never made payments for over a year! They would simply refinance their loans over and over thinking values would only go up! When the stuff hit the fan, they decided to gut the house and sell everything from the appliances to the carpet and hardwoods and hand the keys to the lenders.

Yes, I know, the banks made money. Blah, Blah, Blah. That is obvious. Yet it is difficult to have compassion for a borrower that never should have been able to get a house in the first place.

The question now is what to do to protect the responsible citizens... the Americans who make their mortgage payments, live within their means and save and invest for the future. That brings us to where we are today. Like many have mentioned already, the government has to act to stop the bleeding.
According to your rants, you must think that anyone who has a 401k or invests is ‘wealthy’ because when it comes down to it, that is who is being helped by the governmental actions of today. The steps they are taking will work. The question is how quickly.

I can’t wait to tell my children and grandchildren about the amazing stock deals of 2008, when the uneducated, frightened CNN viewers sold at the bottom because they panicked. Meanwhile, the skilled, level-headed investors bit the bullet, held their ground and actually cherry-picked amazing deals in both the housing market and stock market.

I guess what it comes down to it, the question is one of the individual… is your glass half full or half empty? It’s just like trading Forex: the market is going to do what it wants… the variable is what YOU are going to do. Best of luck to all.

Karma

I agree with some of the things you say, but not all.

Deregulation is the problem. That has not been addressed by the bail out. Thus fix is a relative term. Near term maybe there will be a temporary fix, long term, no until these issues are address.

If you think that the market will go back to 14K levels in a year, that will be indicative of the problem not being fixed. Think about it...

Paulson is appointed by Bush. Both should be put in jail and become somebody's bitch for their lack of competence.

If we are in a depression like in the 30s, you will be cherry picking on a plantation making 30 cents an hour. Look at some historic charts and you will see that the market will not move up much and keep scraping along the bottom, so your investments will be pretty much worthless as bankruptcies will increase many fold.

Good luck.

Just some more common sense from Ron Paul... Rescue plan is NOT a good idea

This week should be interesting. I predict less volatility. I wonder how market will react to the G-7 and IMF comments this past weekend.

Great news...finally, Europe is showing its financial power...a financial package of over US$2 Trillions...and US$815 Billions only from Germany...

...but, will be it sufficient to help our global economy...after this big delay (about 1 month...), before creating this big financial package?

Sincerely? Not...

Unafortuley, will need much...much more...and not money only...but, creating regulatory agencies and new financial rules...or all global economy will die...

http://img527.imageshack.us/img527/234/deadollarnv7.jpg

It will be interesting to see what regulatory agencies will come out of this...if any, since there is a disconnect between this administration ending and the next taking over. Matters may be forgotten quickly.

The thought is there will be another congressional body assembled that will oversee the Fed but you'll notice that this crisis will soon be forgotten and the body will not be formed. Even if it was formed how can they deny their master? The Fed planned this whole thing. Even if they did not intend for the recession to be so deep they hurt the country on purpose. There is no denying that. You can't blame one side or the other exclusively so there is no sense in politicizing this matter. The best answer is to get rid of the Fed. With the privately owned and operated Federal Reserve out of the way we could print money as the citizens need the money rather than as the Fed wants to profit from interest payments. Paying off the national debt would be a simple task.

Many people don't think this crisis will be forgotten quickly but I'll show you why it will be so. The stock markets and real estate go up as the dollar is printed rapidly. The Fed makes more money as the dollar is printed rapidly because each dollar is a loan from the Fed. The Fed has also taken a personal interest in the banks of the USA from Fannie May to Bear Stearns. They stand to make huge profits on these banks; therefore, they will print dollars very fast to inflate values of their newly acquired banks. It is my theory the owners of the Fed also own Goldman Sachs and JPMorgan. Profits will be massive through the end of the year erasing most of the painful selloff and making the citizens fat and happy again so they don't complain to their representatives to control the Federal Reserve Dictatorship Bank.

Abolish the Fed. Ron Paul 2008!

how is that even going to work? the reason we are in this mess is because we started creating debt that wasn't backed by any money. we basically created negative sums of money. how is circulating money around the world going to cover debt that is worth more money than we actually have? it's like trying to buy a $12,000 car with only 5 bucks. IT DOESN'T WORK. you will always only have that five dollars. this is the same thing that happened with the crappy loans. you loan a guy $100,000 when he only has $10,000. at this point, that $100,000 is only backed by $10,000. the idea is that the guy who got the loan will work and eventually pay off that loan. the guy defaults. now there is no way to get that money. you are out $90,000. that money DOES NOT EXIST now. the bank cant ask the guy for that money because he doesn't have it. there is no way to get that money back. any attempt to get that money is just circulating the current money supply. this is how false debt is created. when you have thousands of people doing this, it gets us into these crappy situations.

this is what happened with the first bailout. the government wanted to put 700 bil into the market. where did they get that money from? THE MARKET. it is just a circulation of wealth. there isn't enough money to cover that debt. taxing the people and putting it back into the economy or into failing banks or whatever is just circulating wealth. not paying off debt.

it's like the whole concept of the US stock market "losing" 1.2 trillion in wealth. this is total horse crap. that 1.2 trillion dollars is still here. there was no wealth lost. it was transferred. what was really lost was VALUE. big difference. these are the kinds of things that need to be focused on. the only way to stop this crisis is to eliminate the debt, not try and circulate money to cover it.

Indeed this is the shape of things to came....

Everyone is doing the same thing... G-7 and all... amazing...

This is how you make 870% return in a year as a hedge fund. And this is how you leave your mark on this fucked up industry. I love this article, I just had to post a link to it: http://www.bloomberg.com/apps/news?p...Kyw&refer=home

The terrorism continues!!

http://www.bloomberg.com/apps/news?p...pQs&refer=home

http://www.minneapolisfed.org/research/WP/WP666.pdf

Backed by a study based on factual evidence.

Thanks for the posts and articles, Jeta.

Have a good weekend!
Brent

20K orders blocked on ES for a few hours and resumed at opening. Oooh yeah baby. By 2009, there may not be any markets left to trade.

I'm loving it.

Shows that you are not a trader or will be... otherwise you would be concern

http://bigpicture.typepad.com/commen...escue_plan.jpg

Yep.

shows that you have never heard of sarcasm and probably wont...
otherwise you would understand

http://www.safehaven.com/images/ash/11737_a.png

The monetary base has now expanded in the past 3 months what took the past decade to do.

This ain't a log graph either!