Market crash: are we there yet ?

[JohnRPollard]

Originally Posted by TropicCat

All I can say is WOW

• The CBO paints two future scenarios for the U.S. budget deficit and the national debt. But it plainly declares that fiscal disaster will strike in EITHER scenario. Furthermore …
• The CBO states that its fiscal disaster scenarios could cause severe economic declines for decades to come, including hyperinflation and destruction of retirement savings.
• The CBO then proceeds to admit that even its worse-case scenario could be understated by a wide margin due to panic in the financial markets or vicious cycles that are beyond control.
• Separately, in its Flow of Funds Report for the second quarter, the Federal Reserve provides irrefutable data that we are already beginning to witness the first of these consequences in the United States: an unprecedented cut-off of credit to businesses and consumers.
• Meanwhile, the Treasury Department shows that America’s fate remains, as before, in the hands of foreigners, with the U.S. still owing them $7.9 trillion!
• And despite all this, neither Congress nor the Obama Administration have proposed a plan or a timetable for averting these doomsday scenarios. Their sole solution is to issue more bonds, borrow more, and print more without restraint.

That is the epitome of insanity.



______________________________


Not insanity. It's just business as usual in American politics. Obama's not doing anything different than every American President since Jimmy Carter. It's become 'traditional' to kick the can down the time line to the next administration. If Ronald Reagan could do it, so should everyone else.



This time it's going to be a tight race between Obama's term of office and Armageddon. Place your bets....

Rick et al,

I'm no copyright expert, but I do believe in making sure folks get credit for their authorship. Let's all try to be diligent about proper quotes and citations. I know Rick didn't intend it that way, but in his note above it almost looks like he authored the portion that was quoted.

All you have to do is add the words "QUOTE" and "/QUOTE" at the beginning and end of what you're quoting (except replace the quotation marks with brackets, i.e. [ ] ) and it will stand out nicely as a quote. Then add a quick link/citation so everyone knows whence it came.

Thanks.

And no one will be surprised to hear me agree that the federal debt is a major problem.

[TropicCat]

oops..John, you're correct. When rushed, I tend to forget the quotes. I pasted part of the article that Chris referred me to.

My apologies.

[TropicCat]

This is disturbing



The Fed is buying up US treasuries at the auctions. No one else wants them. I actually used the image button on the post toolbar to show an image in this post. Instead it put a link here and I have no idea why.

Sorry chris_gee, I can't put quotes around it.....

[kootenay]

Originally Posted by Cruisingdad

And here, my friends, is the very basis of out Market Crash THread for the last 12 months at least:

Dollar Living on Its Reputation and Borrowed Time: Tech Ticker, Yahoo! Finance

Just remember folks, you read it here first!!

- CD

I really dont think that a devaluation of the US dollar is a bad thing for the US. As a Canuck who is in the export business it is a bad thing for me but for you folks who want America to begin to make things again it is good news. For those of you who want to see debt reduced it is also good news. As the dollar falls so does the debt in real terms. You borrow at inflated values and repay in deflated dollars. For manufacturing they are more competitive. The balance of trade is also positively impacted as imports drop as they get more expensive. So all around its really not a bad thing. Yes energy get more expensive but that spurs the develoment of domestic sources and new replacement technologies.

In summary a high dollar policy will not serve to help America out of this problem while devaluation will help to a degree. About the only advantage to us up here in the GWN is its way cheaper to buy those Florida condos that are so very cheap right now and it was reported this week that 88% of Canadian buyers of Florida real estate are paying in cash.

Now if only you can rein in your Congress and state houses to reduce spending I think a medium term solution will present itself.

[chris_gee]

These two are well worth a read.
Bill Moyers Journal . Watch & Listen | PBS
Jesse's Café Américain: The Speculative Bubble in Equities and the Case for Deflation, Stagflation and Implosion

The first covers a need to loosen the hold over Congress of the financial sector maybe by eliminating campaign contributions for individuals. It asks in effect whether the people will roll over and let themselves continue to be done.
The second looks at how funds obtainable at zero interest are being used to speculate on the market, and even with one of the big banks buy a big stake in a Chinese car manufacturer. The difficulty being that financial games are not investments in the real economy do not create jobs, and are subsidised by the taxpayers and the pensioners dependent on income from investments.

[TropicCat]

Two topics I wholeheartedly support

[fjon]

Glitches appearing more frequently in the Matrix. Ratigan rakes Chamber of Commerce CEO Tom Donohoe over the coals in this vid.

Dylan Ratigan To Chamber Of Commerce's Tom Donohue: "You Talk Nonsense" (VIDEO)

[kootenay]

Actually I thought Ratigan showed his lack of Journalisitic skills in turning an interview into a Soap box. He came off looking like a rabid fool as opposed his more "reasonable" guest. You didnt even really get a sence of the guest's position on the topic but I came off feeling more in sympathy with the guest for his poor treatment and didnt really get a chance to hear his views.

Another article in the Globe and Mail this morning on Canadian Real estate.

Canadian home sales, prices surge - The Globe and Mail

Sales up here are moving forward at a blistering pace with surpisingly large increases due to low interest rates.

[fjon]

Well, if you are new to financial news, I can see how Ratigan would come off looking bad. However, the Chamber of Commerce has had always and only one message, repeated ad nauseum, Let the private sector take care of it. What's good for us is good for you. Capisch? I think Ratigan, whose heard the rap numerous times, was expressing the general incredulity and anger at these self-appointed 'masters of the universe' who seem to think they can bleed the public treasury forever, even after nearly (and possibly yet again) crashing the world financial system with their incompetence and greed.

Wall Street bonuses are up another 40% this year as the system teeters on the brink. I think it's time for the torches and pitchforks to come out and the guillotine to be dusted off myself.

[Cruisingdad]

Wow! Want an eye opener! I like this lady...

Warren Housing Market Getting Worse: Tech Ticker, Yahoo! Finance

BTW, Rick, she is talking about something like 1:10 trad mort to bancruptcy underwriting... if I heard her correct. Scare the fool out of you. Watch her segments. She needs a place in the administration!

- CD