United States Heading towards a Depression?

Discussion in 'Politics & Religion' started by decoyjames, Dec 27, 2007.

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  1. wisdomtool

    wisdomtool Moderator Staff

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    #841
    The small time investors really have extremely short memories, I pity them, when the market crash, they will be the ones who are caught high and dry.

     
    wisdomtool, Mar 13, 2008 IP
  2. bogart

    bogart Notable Member

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    #842
    It's worse than that. They are trying to play the market and taking losses on a weekly basis. Sell on good news and buy on bad.
     
    bogart, Mar 13, 2008 IP
  3. smatts9

    smatts9 Active Member

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    #843
    "Buy the rumor, sell the news" ;)
     
    smatts9, Mar 13, 2008 IP
  4. bogart

    bogart Notable Member

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    #844
    bogart, Mar 13, 2008 IP
  5. wisdomtool

    wisdomtool Moderator Staff

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    #845
    That was long long due, I still remember the massive amount of spams I got from those mortgage brokers, they are crazy and would lend to anyone.

     
    wisdomtool, Mar 13, 2008 IP
  6. bogart

    bogart Notable Member

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    #846
    Liar loans for 120% of appraised value with no down payment -- I don't even know where they got the appraisals from. Bundled up in a loan with a teaser rate. Doesn't take a genius to figure out what will happen. :(
     
    bogart, Mar 13, 2008 IP
  7. smatts9

    smatts9 Active Member

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    #847
    If the Dollar keeps tanking the Yen carry trade is going to hurt a lot of funds.
     
    smatts9, Mar 13, 2008 IP
  8. wisdomtool

    wisdomtool Moderator Staff

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    #848
    At that time, even if you apply mortgage for your dog, I guess you should be able to get it :)

     
    wisdomtool, Mar 13, 2008 IP
  9. Dead Corn

    Dead Corn Peon

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    #849
    President Bush (leaving White House for the last time)

    "Check, please."
     
    Dead Corn, Mar 13, 2008 IP
  10. smatts9

    smatts9 Active Member

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    #850
    Whatchu' talkn' 'bout? :cool:
     
    smatts9, Mar 13, 2008 IP
  11. wisdomtool

    wisdomtool Moderator Staff

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    #851
    I also do not under what he is talking, not just this post but several other posts here.

     
    wisdomtool, Mar 13, 2008 IP
  12. bogart

    bogart Notable Member

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    #852
    The price of diesel is hitting $4 and shipping costs are causing inflation to spill over into the general economy. I can't figure out what Uncle Ben is trying to do. Not all the housing markets are in a bubble. In places like Texas you can buy a large for for around 184k and the same home would cost 700k plus in the bubble markets. Either this guy is a genius or he's in panic mode and pushing all the buttons.
     
    bogart, Mar 13, 2008 IP
  13. wisdomtool

    wisdomtool Moderator Staff

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    #853
    That's what I am asking too. The measures he took are pretty "innovative" and drastic. But using a live model for testing seemed a bit dangerous.

     
    wisdomtool, Mar 14, 2008 IP
  14. guerilla

    guerilla Notable Member

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    #854
    Oh Lord, you guys are backsliding.

    I hope everyone realizes, that the liquidation of bad credit and malinvestment has to happen, in order to clean up the market.

    Injecting cash, destroying cash, fiddling with asset valuations etc is just monkeying around. It might make things a little better in the short term, but it won't solve the problem.

    Don't count on Bernanke to do something brilliant. He's not more powerful than the business cycle, which is the premise that the FED is founded on, and history has proved many times to be incorrect.
     
    guerilla, Mar 14, 2008 IP
  15. wisdomtool

    wisdomtool Moderator Staff

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    #855
    Bernanke is brilliant but he will not do anything brilliant I guess due to the constraints of his job, which is a pity.

    It is common sense that the liquidation has to occur sometime or other, the later it occur the more painful it will get. Problem is common sense doesn't appear common most of the time.

     
    wisdomtool, Mar 14, 2008 IP
  16. korr

    korr Peon

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    #856
    What they are doing is trying to keep the money supply from contracting. http://www.federalreserve.gov/releases/h6/Current/

    Every time the fed doesn't act, money disappears out of equity and deposits. The full money supply from the top of the bubble has already been leveraged at high rates into more investments, so any decline in asset values / the monetary supply threatens to start a chain-reaction of margin calls, liquidations, and defaults. Deflation in this sense does not necessarily mean that prices go down!

    The fed has to keep pumping the money in at the fastest rate ever, just to keep the leaky bucket full.
     
    korr, Mar 14, 2008 IP
  17. guerilla

    guerilla Notable Member

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    #857
    Disappears? Money doesn't disappear.
     
    guerilla, Mar 14, 2008 IP
  18. ferret77

    ferret77 Heretic

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    #858
    I don't know man, a couple hedge funds worth like billions disappeared a little bit ago
     
    ferret77, Mar 14, 2008 IP
  19. guerilla

    guerilla Notable Member

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    #859
    The Funds in the Funds, or the Funds themselves may have disappeared, but those billions were borrowed from somewhere, and invested somewhere else.

    Money does not disappear. This is accounting 101.
     
    guerilla, Mar 14, 2008 IP
  20. ferret77

    ferret77 Heretic

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    #860
    a bunch of millionaires investors are out millions, I don't think anything was invested elsewhere

    its more like they counted money that didn't really exist
     
    ferret77, Mar 14, 2008 IP
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