United States Heading towards a Depression?

The Treasury says it will auction off T-bills today "to fund the central bank's operations to provide liquidity to financial markets."

http://ftalphaville.ft.com/blog/2008/09/17/16019/the-feds-run-out-of-money/

http://www.marketwatch.com/news/sto...D0-57A8-4EB0-85F7-E346035085AE}&dist=hplatest

http://www.bloomberg.com/apps/news?pid=20601087&sid=aQ58hpS0fRH8&refer=home

The Federal Reserve has no Money...

 

In your mind, perhaps. In reality however, its an undeniable truth.

As of late your opinions have been anything but "unbiased"...

 

I like how you bypassed the other part of what I stated.

'unbiased' you gotta be kidding me, you are one of the most biased posters on here.

This thread is case in point, all bad going on is dems fault, all good is thanks to Bush.



BTW I can and do bash both sides, I say both sides suck, you however appear to think Bush and the Republicans shit don't stink.

 

I did not bypass it. I just found the statement irrelevant.

 

How is it irrelevant?

If someone takes credit for the record home ownership/sales, it would only be logical that they also take the blame when those record ownerships/sales cause banks to go under.

That is unless of course you do not want to blame someone no matter the 'facts'

 

Why does the finance and real estate industry continuously get away without regulation oversight, even as they have exibited continued harmful excesses over DECADES? Frankly, why don't dems or reps take a tougher stance with them?

I like to look at data like the following: It is dated, no doubt. It represents campaign contributions into the 2004 presidential elections....and the report came from July 2004 (there were still plenty of months for more campaign contributions........

Still, its incredibly revealing....

Aside from the category of Industry which includes many other non-industry subcategories, the finance/real estate/insurance industries Way outspend any other category when it comes to campaign contributions.

Every year they pour rediculous amounts into all types of lobbying and campaigns. Cripes its a great "Investment" on their behalf. Spend $35 million. Get the govt. off their backs for 4 years.

From my reading into the topic, it appears that subprime mortgages started to take off during the 90's. Clinton was pushing home ownership.

Bush clearly pushed expanded home ownership. Sub prime mortgages totally exploded in this decade.

The politicians lay off the finance/real estate/insurance industries. The industries perpetually go into some kinds of excess that creates big big financial crises. It keeps happening.

Blaming one party or another is sort of fruitless IMHO. Allowing the industries to operate without controls or oversight is virtually begging for problems.

I've worked in the industries. I made/make money off the industries. I've seen it first hand. I took a financial beating at one time from the bursting bubble of excesses of the industries.

Just friggin watch and monitor their actions.

 

They do need some better regulation, especially with these OTC derivatives like CDS. CDS when it comes down to it is just insurance, but of course Wall Street does not call them that to avoid the regulation. This way of avoiding regulation has caused these finance "nukes" to start ticking.

 

Well this is the first time they actually printed some fresh coin. This is not good. You had better hope this be the first and last time they do this, or else we are on the same road as Zimbabwe and Weimar Germany.

Better start bitching to your politicians.

 

You are confusing record home ownership by first time home buyers that still have their homes. Not the shit bags that over bought, or owned more than one home.

You are talking about something which has nothing to do with the present issue at hand. That is why I found that comment irrelevant.

 

You have got to be kidding me.

The record home ownership was also based off of what is going on, many who owned homes are losing them.

Wow double speak to let your guy Bush off, you must be proud.

 

No. I realized in your heightened state of awareness, reality surprises you.

These are not fannie owned mortgages, nor freddie... These are low income backed loans and HUD, etc., most backed by the US government. The largest group of new home owners (which I can only assume you are referring to as this great Bush claim - though you've cited now source) has been in the form of minority home owners.

Would you have rather had Kerry for the last 4 years? He after all got most his money from Fannie and Freddie. He was the biggest pig in the troff second only to your guy, Obama.

 

You bring no reality to the table though.

Any home owner that loses their home ANY home owner will mark down the amount of home ownership, it's really not all the complicated. No matter how you want to spin it, you take one home owner away and you go down on the number of home owners in the country. It's pretty simple really.

Source? You honestly do not remember the debates, speeches, his cronies, even people like you bragging up the record home ownership angle? What are you smoking?

#1 Mia I do not support Obama, I have stated it over and over. I do not support either of them.
#2 I would have rather of had Kerry than Bush, I however think both were horrible choices.
What did he do to cause it, funding does not equate to actions.

 

Cramer commented that "Today was a good day"

$700 billion in investments were wiped out today. A lot of people don't understand that money market funds are not guaranteed. When the money market fund 'breaks the buck' -- falls below $1 per share -- shareholders lose money.

http://news.yahoo.com/s/ap/20080918/ap_on_bi_ge/financial_meltdown;_ylt=AtBIJI5ys923FhfKFXN8vQpv24cA

Washington Mutual is for sale and Morgan Stanley is in talks with Wachovia.

Freddie Mercury & Queen -- "Another one bites the dust"

http://www.youtube.com/watch?v=rNQRfBAzSzo

 

Yeah, GS is next. No way their business models survive this environment.

 

More money market funds are going to "break the buck" and when people realize what that means to their savings I think we are in for a lot more panic. I know the AIG bailout was to try and keep more from doing that but I think it will just be a short delay.

 

You think GS is next. That is very bad.

There's trillions of dollars that people think they have in the bank and it's really in the market.

You're right that a lot more money market funds are going to 'break the buck'

Washington Mutual is giving 5% on CD's. Why put your money into market funds?

 

Today was really the bad day for short sellers in asian equities as hong kong stocks staged a remarkable recovery of nearly 1400 points, prompting short sellers in other asian equity markets to run for cover..............a central bank effort to trap them, but for how long......it's failing business practices and corrupt policies are to be blamed for this market mahem and not the short sellers.....

 

Frankly if Goldman and Morgan Stanley go under it isn't anywhere near the end of the world. The big problem is with their highly leveraged debt involvement involvements around the world with major financial institutions. They are too leveraged. They don't have the equity to cover losses.

Their traditional functions will continue under different names or entities. They will price financial instruments, advise from a financial aspect on mergers and acquisitions, underwrite or sell and distribute equity and funds.

Taking their overleveraged investments out of financial markets is part of the cleansing process of recessions.

The big problem right now is security. As funds zip around the world searching for security I hope some balance is found quickly rather than over a long period of time.

 

There's some rumors of a RTC type bailout of the financial industry. The plan sponsored by Chuck Schumer and Barney Frank will take toxic assests of the books of the banks at US taxpayer expense.

This could be the mother of all bailouts. A US bailout could cost trillions.

This is the first time in history that the treasury has auctioned off debt to fund the FED.

 

If the RTC had any type of chance then gold should be off to the races while the USD being pummeled, none of which is happening.

What a surprise: WaMu failed to attract any bids.

http://www.ft.com/cms/s/0/8324772c-85af-11dd-a1ac-0000779fd18c.html?nclick_check=1