United States Heading towards a Depression?

Jim Rogers is a genius!

 

Now will fed print more $$$$$(he loves to do) and keep value of $$$ under severe stress........what options does it have for this massive 5 trillion debt?

 

Don;t worry, there is a lot of money in Mexico. Recently a drug dealer was raided, and you know what they found???

 

Fed to have another TSLF auction for $75 billion, but this time taking riskier collateral.

This may be a sign some banks/brokers/etc may have ran out of good/decent collateral.

http://www.newyorkfed.org/markets/tslf/termseclending.cfm

EDIT: Haven't been paying close attention to these auctions, but after digging deeper I found out a few things. They switch between Schedule 1 and 2 collateral every week and there is a "roll over" of something like $105 billion, so this is actually a net drain of liquidity of about $30 billion. Last time this happened we had a large down day in the markets.

 

I've been saying, let the sick patient die for a long time, and all I have seen from anyone on DP is what a cold hearted, callus person I am.

Out of nearly 240 years in America and we have a measly 2 years of bad mortgages dragging us down? Let them die. There really is no reason I or anyone else should have to pay for someone else's bad decisions. Those borrowing money KNEW how much they could afford, regardless of what lenders gave them.

Let the sick patients die... I like that guy!

 

Barney Frank, D-Mass., chairman of the Financial Services panel in reaction to Bernake's testimony yesterday said, "I think conditions clearly call for a second stimulus," and bailouts for everyone

Barney Frank's economic plan is to pull out the magic wand and print money from thin air.

The economy is still pretty good and most people are making money. The government giving handouts every 5 minutes isn't a good thing in the long run. 2009 is where things start to get bad. I haven't see anything to make me think that things are getting better.

 

Wasn't that Bush's answer?

It's clear, they all suck!

 

Bush has vetoed hundreds of billions of spending over the last couple of months and congress has overrode his veto. We are now spending 10x the cost of the Iraq war on bailouts.

The Senate has just passed a second 300 billion dollar housing bailout.
Add to the 168 billion stimilus, Bear Stern bailout, Freddie/Fannie bailout and Housing Bailout I.

As a result, inflation is up 1.1% in June and 5% for the last 12 months. Of more consern are wholesale prices that are up 1.8% in June and 9.2% over the last 12 months.

 

Bush is not one to talk about spending beyond our means.....................

 

I wonder how much home prices would drop if fannie and freddie went under?

 

Not one bit. They are not, nor have they ever been primary lenders.

 

Guys, please remember what is going on with the currency, with inflation and the criminal bailouts of the Chinese/Japanese government by placing a massive debt burden on the next several generations.

It's very important to understand this, so we can all make informed choices in the future not just in elections, but how we conduct our own personal finances. I have a bad feeling things are going to get a lot worse before they get better.

Buy metals and payoff personal debt.

Best of luck.

 

I wonder whether Bernanke has ever read the following comment by Friedrich Hayek on the Great Depression:

"Up to 1927 I should have expected that the subsequent depression would be very mild. But in that year an entirely unprecedented action was taken by the American monetary authorities [who] succeeded, by means of an easy-money policy, inaugurated as soon as the symptoms of an impending reaction were noticed, in prolonging the boom for two years beyond what would otherwise have been its natural end. And when the crisis finally occurred, deliberate attempts were made to prevent, by all conceivable means, the normal process of liquidation."

Sounds like the Fed is pulling pages out of the same script in dealing with the housing crash.

 

I hate to say it but I bailed on America.

I want to become a resident of Panama, little to no taxes

 

yeah but when they stopped taking jumbo loans for a bit, it meant no one could get "jumbo" loans from primary lenders didn't it?

 

The Great Depression was not an event but rather an era. It interesting to note from Friedrich Hayek's comments that a mild decline was expected. But the Fed lowered rates inflating the bubble further. When the bubble crashed the Fed all means to prevent the normal process of liquidation.

Freddie/Fannie have made over 200 million dollars in campaign contributions over the last 10 years. Perhaps that has more to do with Bernanke's actions than history.

 

If FNM and FRE go under then you can expect a 3-4% jump in 30yr fixed mortgages.

 

No, Bush let those of us that pay taxes have some of our own money back to spend as we saw fit.

There is a huge difference between that and just giving away money that does not exist.

I guess that depends on who "they" are.

 

The money did not exist during the first tax cuts and economic stimulus.. = with any rationale UNBIASED view point it was pretty much the same damn thing.