United States Heading towards a Depression?

Mia doesn't have a God complex. Hoover did.

I'm telling ya, Rothbard's "America's Great Depression" is a fantastic read. He wrote economic history so well, it was almost like reading a novel.

 

Well he probably meant that paying for the bailouts isn't limited to the US taxpayer. Everyone holding dollars or dollar-denominated assets gets to pitch in a little bit, whether you're in China or Tennessee..

 

Nice video of Peter Schiff. It would be funny to get smatts on TV to battle with the Bulls.

Peter Schiff: 'The Dow will be worth one ounce of gold.'

In his book, Crash Proof, he details how the Dow and Gold going to par is a historical low point for the market.

 

It's happened two times before during the depression and 1980. The Dow is down 19.9 percent from its record-high close of 14,164.53 in October.

Analysts and investors are reversing their predictions that the worst of the credit market contraction is over after almost $400 billion of writedowns and losses by the world's largest financial institutions.

CNBC on-air editor Charles Gasparino reported today that Merrill's writedowns may total $5 billion, citing unidentified people in the firm.

Goldman's Tanona estimates an $8.9 billion writedown in the quarter for New York-based Citigroup, the biggest U.S. bank

http://www.bloomberg.com/apps/news?pid=20601087&sid=aru0bRrJSzvY&refer=home

 

Yay for freefalls!

Come on Dow 1,000!

 

Some are saying the nexus could occur @ $5,000. I have been thinking about going long in gold, I'm just chicken. I don't like betting against the illuminati.

 

A real danger is that people are using money market funds to save operating cash. Continued decline in the Stock Market will cause funds to break the buck. As long as money market share price doesn't fall below the SEC's threshold of 99.9 cents, the fund can use the constant $1 share price. If the market price of the portfolio falls below that level, the fund has to use the actual price and "break the buck." Breaking the buck will cause a panic and bank runs.

Total U.S. money market mutual fund assets decreased by $20.45 billion to $3.455 trillion in the week ended June 25, the Investment Company Institute said on Thursday.

http://www.reuters.com/article/fundsFundsNews/idUSWBT00929520080626

The housing/stock bubble is already weighing on Ameican Express, BoA, Citibank, Chase, and Home Depot. The automotive industry is in trouble also and GM is tanking.

 

Wow, this will blow your mind. Read it.

http://mrmortgage.ml-implode.com/20...-shelby-bailout-this-news-must-get-out-there/

I really don't like Dodd. He's an idiot and a career politician, in other words, a know nothing layabout whose only talent is spending the public's money and selling out their trust.

At what point do people say enough is enough?

 

I heard about that one. Dodd had a sweatheart loan for Countrywide as I recall. This is supposed to be a 300 billion bailout but who knows what the true cost will be. Money market funds have a lot of the commercial paper backed by subprime. So it goes beyond the subprime companies all the way to the big commercial banks.

 

Apparently BofA actually wrote the legislation.

This is an ongoing problem, as the legislators no longer write their own bills. They get it done by others, and it seems Dodd was outright paid to put this bill through. Do you think he will be impeached?

 

Sen. John Ensign, the Republican senator from Nevada is reportedly delaying the bill with a demand that renewable-energy tax credits be attached to the housing bill.

http://www.courant.com/news/local/hc-doddhousing0626.artjun26,0,618822.story

 

I don't think politicians even write anything anymore, it is all lobbyists. I am not surprised in the least bit.

 

I don't even think they read the legislation

 

You shouldn't blame them because I don't think that they can read.

 

Read the Bills Act, and the Write the Laws Act.

Wow, check this out...

 

The European Central Bank meets Thur. July 3, 2008 and it's expected that the ECB will raise rate a 1/4 point to 4.25%. This will widen the gap with the Fed rate of 2% putting more downward pressure on the dollar.

The ECB has no choice. Inflation is the eurozone is expected to hit 4.1% in August.

MBIA isn't looking so good.

The IMF probably will have little or no impact.

 

The dollar hegemony is coming to an end. I can see the Euro becoming the new reserve currency, which will create the perfect window of opportunity for the Renminbi to decouple.

 

I as well.

 

All we have to do is make one up out of thin air too... Introducing the Amero!