Global Correction

[lannarebirth]

The worst still have to come in the US, just wait when the Credit Card crisis will start. The housing crisis will look peanuts compared with that.

I get the impression that the Americans forgot that on one time or another the bills have to be paid. You just can't defer your credit indeffinitly Last week a saw a documentary where a man told he paid his mortgage with his Credit card. Don't he realises that he have to pay interest twice?

The American public and government has an attitude to live on borrowed money. So they are equally guilty for the collapse of the financial systeml.

And they not learn their lesson yet. The inter banking lending rates ar already zero and the trade balance and deficit are dramatic and still the US government lend the money to make the American public spending and borrowing more.

Its just a shame and almost criminal that the rest of the world is sufering by it and must pick up the peaces.

Secondly from the moment that the banks stepped out of their role as traditional banker and set up their own financial products and constructions and almost force people to borrow more, only to make an artificial raise of their shares and profits we could see it comming.

A few of the most profitable and strongest European banks like Santander, Rabo Bank and Deutsche bank never did like that.

The CEO of Santander explained it very well when he mentioned in an interview his golden banking rules

1-if you don't understand a financial product DON'T BUY IT

2- if you would not buy it by yourself DON'T SELL IT

3- if there is no secured collateral DON'T LENT THE MONEY

How fortunate you are that with your own sound economy, sound currency and fiscally predent citizens none of this will affect you. You may continue to vote yourselves ever higer pension payments based on your demoaphic population.

Funny, there's been no "flight to quality" into your markets or currency.

[humbug]

has anyone more information on this extra secret lending by the fed

i can only find this article about congressman alan grayson who has brought it to the public attention

http://www.infowars.com/fed-secretly-lends...hout-oversight/

[flying]

A Modest Proposal from Joe Stiglitz

http://jessescrossroadscafe.blogspot.com/2...joe-and-me.html

"..."The government should allow every distressed bank to go bankrupt and set up a fresh banking system under temporary state control rather than cripple the country by propping up a corrupt edifice."

Joseph Stiglitz, the Nobel Prize-winning economist

This is the procedure, that is what we do with insolvent banks. That is what the FDIC is for.

We don't prop up the bad banks. The regulators help them become solvent through a resolution and restructuring of their bad debt, and then either sell them, sell their assets independently, or allow them to re-emerge as good banks once they are solvent

This is precisely what Le Café Américain has had on the menu for the banks over the past seven months, with some detail behind it, including systemic reforms.

We do not burden an entire national economy, we do not cripple an entire banking industry including many regional banks who have done no wrong, in propping up a few insolvent institutions who arrived at that state through outrageous bad management.

There is widespread suspicion that this exercise is designed to protect a handful of large money center banks from realizing their losses - JPM, C, Morgan Stanley, B of A, and Goldman Sachs.

Let the system work. Do not continue to privatize the gains and subsidize the losses.

And then let the criminal and civil investigations of the major actors in this modern tragedy begin, if we ever wish to 'restore confidence' in Wall Street in the public and the rest of the world.

[Naam]

Joseph Stiglitz, the Nobel Prize-winning economist

nothing against Stiglitz, in fact i quite like his lectures. but nobel prizes are no guarantee for being right.

"Long-Term Capital Management (LTCM) was a U.S. hedge fund which used trading strategies such as fixed income arbitrage, statistical arbitrage, and pairs trading, combined with high leverage. It failed spectacularly in the late 1990s (in 1998 it lost $4.6 billion in less than four months), leading to a massive bailout by other major banks and investment houses,[1] which was supervised by the Federal Reserve.

LTCM was founded in 1994 by John Meriwether, the former vice-chairman and head of bond trading at Salomon Brothers. Board of directors members included Myron Scholes and Robert C. Merton, who shared the 1997 Nobel Memorial Prize in Economic Sciences."

[Nouf]

The worst still have to come in the US, just wait when the Credit Card crisis will start. The housing crisis will look peanuts compared with that.

I get the impression that the Americans forgot that on one time or another the bills have to be paid. You just can't defer your credit indeffinitly Last week a saw a documentary where a man told he paid his mortgage with his Credit card. Don't he realises that he have to pay interest twice?

The American public and government has an attitude to live on borrowed money. So they are equally guilty for the collapse of the financial systeml.

And they not learn their lesson yet. The inter banking lending rates ar already zero and the trade balance and deficit are dramatic and still the US government lend the money to make the American public spending and borrowing more.

Its just a shame and almost criminal that the rest of the world is sufering by it and must pick up the peaces.

Secondly from the moment that the banks stepped out of their role as traditional banker and set up their own financial products and constructions and almost force people to borrow more, only to make an artificial raise of their shares and profits we could see it comming.

A few of the most profitable and strongest European banks like Santander, Rabo Bank and Deutsche bank never did like that.

The CEO of Santander explained it very well when he mentioned in an interview his golden banking rules

1-if you don't understand a financial product DON'T BUY IT

2- if you would not buy it by yourself DON'T SELL IT

3- if there is no secured collateral DON'T LENT THE MONEY

errrr, maybe you missed this & this???

http://business.timesonline.co.uk/tol/busi...icle5045226.ece

http://news.bbc.co.uk/2/hi/business/7323893.stm

This is old news

Deutsche Bank has taken down some savage write downs, much like all the major Europeans banks have,

UBS the same

Santander have been exposed to their own Subprime property bubble in Spain, not to mention the Madoff ponzi scheme exposure, where expectations of $3 billion lost

Just because many Europe banks have not been exposed to US subprime, does not mean they have not been responsible for the world problems associated with the credit ponzi scheme

To my knowledge Europe is in a far worst shape than the US, anyone thinks that Europe will come out of this smellying of roses is mistaken

Germany may beable to rough it out, but even they are going to suffer, so they better have big pockets because there`s alot of Europe that needs bailing out, and other than france, i dont see where the money is coming from, do you???

A lot of europe`s banking system is technically insolvent, on a mark-market basis, we are playing music chairs, and you know what happens when it stops, the US is in a similar position

The whole banking system is sitting on the edge of a potential meltdown, anyone seen US treasuries recently???? looks like the market has called bernanke`s bluff

Its a good job The Fed and ECB have extended the currency swaps, as alot of Asia (S korea etc) is sitting on the edge of the cliff and i suspect some of those Asian countries are going to call in those swaps

http://www.iht.com/articles/ap/2009/02/04/...rrency-Swap.php

http://www.bloomberg.com/apps/news?pid=206...&refer=home

As i mentioned in other threads their is alot of exposure to US debt sitting out around in the world

Investor confidence has been lost,

To have a notion of blaming the US is a simple cop out, when "ALL" parties are to be blamed, while it true that wall street created these problems, The world community took it upoon itself to purchase this debt, with out due diligence, no one forced them to by all that worthless paper, it was from corporate greed

Too many are looking for a scape goat when they need to be looking at their own societies culture, many countries have changed from savers to debtors

The whole world was part of this giant ponzi scheme, too many are looking to point the finger at the US consumer, but they need to be looking inwards towards their own countries, we as a society together was part of this credit expansion dream.

Credit is what caused this problem, and the ease of this wealth hence the last 15 years of BS wealth for many has finally come to climax and the bets have to be called in with the biggest margin call in the last 70 years

Edited February 5, 2009 by Nouf

[henryalleman]

errrr, maybe you missed this & this???

http://business.timesonline.co.uk/tol/busi...icle5045226.ece

http://news.bbc.co.uk/2/hi/business/7323893.stm

This is old news

Deutsche Bank has taken down some savage write downs, much like all the major Europeans banks have,

UBS the same

Santander have been exposed to their own Subprime property bubble in Spain, not to mention the Madoff ponzi scheme exposure, where expectations of $3 billion lost

Just because many Europe banks have not been exposed to US subprime, does not mean they have not been responsible for the world problems associated with the credit ponzi scheme

To my knowledge Europe is in a far worst shape than the US, anyone thinks that Europe will come out of this smellying of roses is mistaken

Germany may beable to rough it out, but even they are going to suffer, so they better have big pockets because there`s alot of Europe that needs bailing out, and other than france, i dont see where the money is coming from, do you???

A lot of europe`s banking system is technically insolvent, on a mark-market basis, we are playing music chairs, and you know what happens when it stops, the US is in a similar position

The whole banking system is sitting on the edge of a potential meltdown, anyone seen US treasuries recently???? looks like the market has called bernanke`s bluff

Its a good job The Fed and ECB have extended the currency swaps, as alot of Asia (S korea etc) is sitting on the edge of the cliff and i suspect some of those Asian countries are going to call in those swaps

http://www.iht.com/articles/ap/2009/02/04/...rrency-Swap.php

http://www.bloomberg.com/apps/news?pid=206...&refer=home

As i mentioned in other threads their is alot of exposure to US debt sitting out around in the world

Investor confidence has been lost,

To have a notion of blaming the US is a simple cop out, when "ALL" parties are to be blamed, while it true that wall street created these problems, The world community took it upoon itself to purchase this debt, with out due diligence, no one forced them to by all that worthless paper, it was from corporate greed

Too many are looking for a scape goat when they need to be looking at their own societies culture, many countries have changed from savers to debtors

The whole world was part of this giant ponzi scheme, too many are looking to point the finger at the US consumer, but they need to be looking inwards towards their own countries, we as a society together was part of this credit expansion dream.

Credit is what caused this problem, and the ease of this wealth hence the last 15 years of BS wealth for many has finally come to climax and the bets have to be called in with the biggest margin call in the last 70 years

There is still a rather important difference between the US and the EU Financial crisis. The Fed has a zero lending rate, therefore no more margin,so that tool they can't use anymore, while the EU interest rate still have.

This week there was an interview with an ex CEO from an an American car plant in Belgium. He declared that the US car industry can not be restructured before 2014. Therefore at least 1 or 2 will be bankrupt, most likely it will be GM. Probably only Ford will escape bankruptcy.

A possible scenario is that the GM daughter "OPEL Europe" and FORD daughter "FORD KOLN" will be sold or make a restart. Because otherwise than the US plants they are in a far less deplorable situation as the US plants.

Your link to Deutsche Bank was interesting, but I would like to emphasize that they indeed had to write off some bad credits but this was a possible one time operation, and they still are profitable and did not ask financial support from the government.

Furthermore that most European banks are in financial problems due to then financial adventures of their US daughters.

This created for the second biggest Bank almost bankruptcy, even their home market was very profitable by traditional banking.

Your assumption that,

Too many are looking for a scape goat when they need to be looking at their own societies culture, many countries have changed from savers to debtors

is your point of view, I only emphasize that the saving rates in the entire EURO zone,is almost 5X higher than in the US. Maybe this will convince you for the upper set.

http://www.msnbc.msn.com/id/11098797/

http://www.ecb.int/press/pr/date/2004/html/pr040609.en.html

http://www.telegraph.co.uk/finance/2806785...vings-fall.html

I'm no economist or an financial wizard I only have (hopefully?) some common sense. Therefore I dare say that the EU financial situation is less problematic than in the US. Don't forget we have a home market of almost 500 million people.

Of course this an personal view and you always welcome to point out where I make the wrong conclusions and correct me if neccesary

[bingobongo]

well kiddies, wave two is coming, (wave 3 is the commercial real estate collpase that is not included in the chart) and this wave will be longer in duration.......prepare accordingly.....and yes LOS will feel the pain as well

naam, how is the old prostate nowadays?

[lordofdelusion]

well kiddies, wave two is coming, (wave 3 is the commercial real estate collpase that is not included in the chart) and this wave will be longer in duration.......prepare accordingly.....and yes LOS will feel the pain as well

naam, how is the old prostate nowadays?

Just something to think about for what it's worth. My sister in the US has been in the mortgage business for years. She is now very busy doing re-financing as the rates have dropped so low. Many of these "re-sets" may never happen as people are locking in low rates now. Re-sets are always linked to something too. T-bill, libor or whatever. With rates so low, an interest rate adjustment may be very small.

[bingobongo]

well kiddies, wave two is coming, (wave 3 is the commercial real estate collpase that is not included in the chart) and this wave will be longer in duration.......prepare accordingly.....and yes LOS will feel the pain as well

naam, how is the old prostate nowadays?

Just something to think about for what it's worth. My sister in the US has been in the mortgage business for years. She is now very busy doing re-financing as the rates have dropped so low. Many of these "re-sets" may never happen as people are locking in low rates now. Re-sets are always linked to something too. T-bill, libor or whatever. With rates so low, an interest rate adjustment may be very small.

that would be fine and dandy if rates were staying low, but they are rising again so the refinancing window is closing per the chart below

the 10 year bottomed at around 2.18% and now that the bond bubble is bursting, yields are around 3.04% and will continue to climb,

and given the that low was around Christmas time, most people were focusing on unwrapping gifts and not refinancing

Edited February 10, 2009 by bingobongo

[lannarebirth]

well kiddies, wave two is coming, (wave 3 is the commercial real estate collpase that is not included in the chart) and this wave will be longer in duration.......prepare accordingly.....and yes LOS will feel the pain as well

naam, how is the old prostate nowadays?

Just something to think about for what it's worth. My sister in the US has been in the mortgage business for years. She is now very busy doing re-financing as the rates have dropped so low. Many of these "re-sets" may never happen as people are locking in low rates now. Re-sets are always linked to something too. T-bill, libor or whatever. With rates so low, an interest rate adjustment may be very small.

that would be fine and dandy if rates were staying low, but they are rising again so the refinancing window is closing per the chart below

the 10 year bottomed at around 2.18% and now that the bond bubble is bursting, yields are around 3.04% and will continue to climb,

and given the that low was around Christmas time, most people were focusing on unwrapping gifts and not refinancing

That yields chart is pretty, if you're long yield.

[jumnien]

It seems to me that all this will lead to lower housing costs; where's the downside to that?

[jcon]

hahahaha currently "bingobongo" is a tag on this thread.... bingo did you go and tag yourself??? Maybe we can have some more tags from this awesome thread, like "hey kiddies," "Naam's prostate," "tinfoil hats," "unicorns and skittles," and "som tum?" "Though I must say I did laugh at the unicorns and skittles comment....

As for the charts above, I am a fool, and I wish Crash999 would please come and interpret them for me!

[Naam]

hahahaha currently "bingobongo" is a tag on this thread.... bingo did you go and tag yourself??? Maybe we can have some more tags from this awesome thread, like "hey kiddies," "Naam's prostate," "tinfoil hats," "unicorns and skittles," and "som tum?" "Though I must say I did laugh at the unicorns and skittles comment....

As for the charts above, I am a fool, and I wish Crash999 would please come and interpret them for me!

i'm quite sure that my prostate, being recently "tagged" with a PSA of 0.44 and therefore neglected would be honoured if used as a tag. personally i'd be delighted to see my prostate connected to Bingobongo's comments as they have something in common and that is..... the location.

[cloudhopper]

Just something to think about for what it's worth. My sister in the US has been in the mortgage business for years. She is now very busy doing re-financing as the rates have dropped so low. Many of these "re-sets" may never happen as people are locking in low rates now. Re-sets are always linked to something too. T-bill, libor or whatever. With rates so low, an interest rate adjustment may be very small.

Regardless of interest rates those who lost a job or are looking at outstanding mortgage balances approaching 2X the market value of their houses will be walking away, with severe consequences to holders of their derivative securities.

[midas]

I guess it's not surprising there is a sense of a speeding up of this thing

sometimes reading some of these comments I feel like I am on a runaway train

and I have a feeling this is going spark a big change in something...............

Just in today's media we have

Thailand - The Nation 2009-02-09

Dr Chakratham Thammasak, deputy permanent secretary at The Public Health Ministry

said the ministry believes this economic crisis is worse than the one that hit Thailand in 1997..............

UK Independent. Tuesday, 10 February 2009

Ed Balls, the PM's closest ally, warns that downturn is ferocious and says impact will last 15 years

Britain is facing its worst financial crisis for more than a century, surpassing even the Great Depression

of the 1930s, one of Gordon Brown's most senior ministers and confidants has admitted.

In an extraordinary admission about the severity of the economic downturn, Ed Balls even predicted

that its effects would still be felt 15 years from now.

He warned that events worldwide were moving at a "speed, pace and ferocity which none of us have

seen before" and banks were losing cash on a "scale that nobody believed possible".

USA Wall Street Journal 10 February 2009

The global downdraft is hitting the world's emerging economies with a speed and ferocity few imagined possible just months ago.

The pace of the turnaround has caught policy makers and investors off guard. In a matter of months, gauges of growth

in trade and industrial production in a number of countries went from passable to falling off a cliff; even domestic demand

is suffering. Asia's economies have posted the starkest declines, but the slide is evident from Latin America to Eastern Europe.

Australia Sydney Morning Herald February 10, 2009

Business confidence reversed December's gains and tumbled to a record low in January with the outlook for

employment and forward orders hitting recessionary levels.

Companies' confidence dropped to minus-32 index points last month, a new low for the 12-year history of the

National Australia Bank's survey. That compared with December's improvement to minus-20, following

November's minus-30 reading.

Edited February 10, 2009 by midas

[jcon]

hahahaha currently "bingobongo" is a tag on this thread.... bingo did you go and tag yourself??? Maybe we can have some more tags from this awesome thread, like "hey kiddies," "Naam's prostate," "tinfoil hats," "unicorns and skittles," and "som tum?" "Though I must say I did laugh at the unicorns and skittles comment....

As for the charts above, I am a fool, and I wish Crash999 would please come and interpret them for me!

i'm quite sure that my prostate, being recently "tagged" with a PSA of 0.44 and therefore neglected would be honoured if used as a tag. personally i'd be delighted to see my prostate connected to Bingobongo's comments as they have something in common and that is..... the location.

[lannarebirth]

It seems to me that all this will lead to lower housing costs; where's the downside to that?

Moral Hazard is the downside. Some people are going to get justifiably upset that people who did everything wrong receive bailouts, and people who follow the rules pick up the check.

here's a few anecdotal cases from my Inbox:

This is what's wrong with America!! I recently asked my BOA mortgage banker if I was eligible for a loan modification on a SC condo I was looking to drop my rate about from 6% to 5%. He told me the FNMA denied such a request. A friend of mine stopped paying his mortgage on a Florida house which he bought as rental property. After 4 months of not paying he was given a loan modification of 1% for 2 years, 2% for 2 years and 4% for the fifth year. Why is it the deadbeats of America are rewarded when the rest of us hardworking slobs are denied a fair shake? This is where we're headed...income redistribution AKA socialism.

I'm the head of the modification department at a FDIC insured Bank and that 60 minutes story on Option ARM's is 100% accurate. I talk to people 14 hours a day. Just a FYI...........I had written e-mails to the ****** group months ago stating that you have seen nothing yet and who were the major players to go down with their huge portfolio's of Option ARM loans! *** can back me up on this. If you guys and gals knew how many people earning 50K/yr own 5 - 10 properties your jaws would drop!!! No govy program will save a person from walking away from 7 homes and only keeping their primary. The moment a renter stops paying it's OVER!! They have no reserves to carry the costs for even 2-3 months on these properties. I'm guessing at least 50% of CA loans are Option ARM's.............Holy Cow!!! PS - Most CA loans waived the impound. You can not believe how many people have NOT paid their property taxes and the banks have to cover for them just to protect their 1st position on the loan!!

Here's another scenario how a good responsible citizen gets no help

from all this mortgage modification:

My friend bought a home for $600K in 2006 at 6% for 35 years (5 years

interest only and 30 yrs fixed thereafter) paying down 5% of the

principal. He's been paying PMI bcos he didn't put down 20%. He

started paying down the principal every month so that he can get it

below 80% to get rid of PMI. Now 2 years have passed, the principal is

at 80% of his purchase price, but guess what? The price of his home is

now $435K. He owes around $500K now. He can't get rid of the PMI as

LTV is still over 80%(in fact over 100%!!!). He can't refinance at a

lower rate bcos you can only get 95% of the loan which is now at 413K.

That means he has to pay down atleast 87K to refinance and atleast

152K to get rid of PMI!!!

His neighbour who is delinquent, and is behind in his payments has got

a loan modification and a rate of 4.87%!!!

Now tell me, why would someone want to struggle and pay in time if he

is screwed like this while his neighbour who took part in this madness

is rewarded? This could easily turn good loans into bad.

[jcon]

It seems to me that all this will lead to lower housing costs; where's the downside to that?

Moral Hazard is the downside. Some people are going to get justifiably upset that people who did everything wrong receive bailouts, and people who follow the rules pick up the check.

I'm the head of the modification department at a FDIC insured Bank and that 60 minutes story on Option ARM's is 100% accurate. I talk to people 14 hours a day. Just a FYI...........I had written e-mails to the ****** group months ago stating that you have seen nothing yet and who were the major players to go down with their huge portfolio's of Option ARM loans! *** can back me up on this. If you guys and gals knew how many people earning 50K/yr own 5 - 10 properties your jaws would drop!!! No govy program will save a person from walking away from 7 homes and only keeping their primary. The moment a renter stops paying it's OVER!! They have no reserves to carry the costs for even 2-3 months on these properties. I'm guessing at least 50% of CA loans are Option ARM's.............Holy Cow!!! PS - Most CA loans waived the impound. You can not believe how many people have NOT paid their property taxes and the banks have to cover for them just to protect their 1st position on the loan!!

You are absolutely correct with the Moral Hazard issue lanna. It's a total disaster.

Re what I bolded/underlined above... care to tell which companies your friend was talking about? Sounds like a potentially good trade....

[lannarebirth]

It seems to me that all this will lead to lower housing costs; where's the downside to that?

Moral Hazard is the downside. Some people are going to get justifiably upset that people who did everything wrong receive bailouts, and people who follow the rules pick up the check.

I'm the head of the modification department at a FDIC insured Bank and that 60 minutes story on Option ARM's is 100% accurate. I talk to people 14 hours a day. Just a FYI...........I had written e-mails to the ****** group months ago stating that you have seen nothing yet and who were the major players to go down with their huge portfolio's of Option ARM loans! *** can back me up on this. If you guys and gals knew how many people earning 50K/yr own 5 - 10 properties your jaws would drop!!! No govy program will save a person from walking away from 7 homes and only keeping their primary. The moment a renter stops paying it's OVER!! They have no reserves to carry the costs for even 2-3 months on these properties. I'm guessing at least 50% of CA loans are Option ARM's.............Holy Cow!!! PS - Most CA loans waived the impound. You can not believe how many people have NOT paid their property taxes and the banks have to cover for them just to protect their 1st position on the loan!!

You are absolutely correct with the Moral Hazard issue lanna. It's a total disaster.

Re what I bolded/underlined above... care to tell which companies your friend was talking about? Sounds like a potentially good trade....

WaMu was one. Not too hard to guess the rest.

[midas]

And here we have nuclear armed Russia once again slowly descending

into chaos ......................................

Russian debt woes report stuns euro

February 10, 2009

Reuters

Russia will request negotiations with European and other foreign banks to postpone repayment on up to $US400 billion ($600 billion) of its private sector debt, Japan's Nikkei business daily said today.

The euro fell sharply on the the report, with the single European currency sliding more than 1% against both the dollar and the yen.

The newspaper quoted a Russian banking industry official as saying up to $US400 billion in debt was at stake.

A proposal for postponing repayment had been submitted to the government and some foreign banks have already agreed to start negotiations, the Nikkei said.

"As was the case last week when Fitch downgraded Russia, bad news about Russia basically becomes a factor for the euro to fall," said Takahide Nagasaki, chief foreign exchange strategist for Daiwa Securities SMBC.

This is because of the euro zone's economic ties with Russia, and also since banks in the euro zone probably have large lending exposure to Russia, Nagasaki said.

Fitch Ratings downgraded Russia's sovereign rating to 'BBB' last Wednesday and said further cuts were possible due to low commodity prices, high capital outflows, melting reserves and corporate debt problems.

Fitch's downgrade followed one from Standard & Poor's in December, making it the second ratings cut for Russia since the end of its last major financial crisis in 1998, when Russia devalued the rouble and defaulted on $US40 billion of its debt.

[Old Man River]

I throw this out for discussion purposes only. It is not something I agree with. I have recently had a discussion with someone whose articles many of us read in one of the local newspapers in Thailand. His view is that the Thai government should revalue the THB/USD back to 25:1. He believes that the free market philosophy has failed and that Thailand should focus on sufficiency and not get trapped again. His view is that the US is bankrupt and Thailand has become far too reliant on exports to the US, a market he does not see as coming back.

Since I was taken aback by these comments, I didn't ask about a very strong THB's impact on ag exports (which is the first thing I should have asked), but he has thought it all out and would have probably come back with something such as Thailand coming up with some type of subsidy that gets around the WTO (note, I am not trying to put words in this guy's mouth, but I am sure he would have come up with some answer that would have, at the time, made sense).

Anyone have thoughts on this?

[JimsKnight]

Hmm, while he may speak for a fair few thais, it's quite another story entirely to actually see through a country into isolation.

Too many countries are in the 'NWO' <ahem>, UN big boys club to allow this, Thailand being in the club as well means it can't really stick two fingers up to US. The US could quite easily do some of it's own exclusionist policy's.

Besides which I think the country itself would have to retool and radically reform for such action.

But TIT so who knows...

[flying]

Now tell me, why would someone want to struggle and pay in time if he

is screwed like this while his neighbour who took part in this madness

is rewarded? This could easily turn good loans into bad.

That is what I was wondering back in 06

When I saw the appraisers giving out those pumped up appraisals.

I am no financial wiz just a contractor but I wondered why they & more importantly the banks that asked for the appraisals couldnt see it coming. Making loans that were doomed from day one. They must have known that it was all pumped up & when it returned to sanity folks would walk.....Why wouldnt they? Only to end up like this guy trying to get to 80% chasing the falling price.

I dont even call it a Moral Hazard I call it a total loss of faith/heart

Loss of faith in this system.

Then again this is a chip of the problem overall right? There are those who after giving these pumped appraisals & pumped loans then sold them over & over again. Then when that was not enough didn't they then bundle them & rate them? Rate & Insure them? Even though the insurance backer had no collateral other than their signatures?

Is that it? Like I said I am not a financial wiz but if this is even partly true I can see many folks saying well &lt;deleted&gt; it then & &lt;deleted&gt; them let them eat this. So I guess then it it a moral collapse in the end.

[bingobongo]

naam, you post in ThaiVisa like a monkey in heat, all over the place and with no control

i wonder which way it will break, maybe your fortune teller, er economic team, can lead us to the promised land naam?

[Naam]

naam, you post in ThaiVisa like a monkey in heat, all over the place and with no control

another brilliant addition to the accumulated facts concerning "global correction". but what i miss is "the pain, the pain... LOS will feel the pain!"

[hhgz]

When the DJIA was at 10500 (those were the good old days), bingobongo posted that if the DJIA didn't go up to 10700, it would drop to 10300. What an incredible prediction: if the market didn't stay the same, it would either go up or down! Amazing!!

[Naam]

When the DJIA was at 10500 (those were the good old days), bingobongo posted that if the DJIA didn't go up to 10700, it would drop to 10300. What an incredible prediction: if the market didn't stay the same, it would either go up or down! Amazing!!

no doubt he is as dàmn good as he claims. or do you think one of us ignorants would have dared to make such an intelligent statement?

[bingobongo]

monkeys i tell you, monkeys........naam what brand of adult diapers are popular? i am thinking of investing in a manufacturer

anyway, what a magical place.........

Thai Central Bank Says Crisis in 2009 Less Severe Than 1997

Thailand's benchmark equity SET Index posted its worst annual performance in 11 years in 2008, falling by almost 48 percent. This year, it has dropped another 2.1 percent.

The baht currency has extended last year's 15 percent loss against the dollar on speculation a deepening economic slump will prompt foreigners to further trim their holdings.

http://www.bloomberg.com/apps/news?pid=206...&refer=home

Edited February 13, 2009 by bingobongo

[bingobongo]

naam, you post in ThaiVisa like a monkey in heat, all over the place and with no control

i wonder which way it will break, maybe your fortune teller, er economic team, can lead us to the promised land naam?

well well well, do i really need to say anything to the bagholders, and the funny thing is wave 2 has just started and wave 3 isn't even here yet

as far as asia is concerned...so much for decoupling etc. and as for LOS and the baht? i will continue to short the baht faster than an unemployed bargirl shortens her skirt in these turbulent times, and as for LOS? it is about to become a basket case

i can look back fondly to when i started this thread back in 2007, and can I happily say that my wallet and genius have been vindicated......

for those who listened, you have done well either by making money on the way down or by remaining unscathed and i congratulate you, for those who didn't (those folks are too many in number to mention by name), i won't rub it in, the market is doing that for you

Dow 6,804.55 -256.45

Edited March 2, 2009 by bingobongo

[bonzor]

naam, you post in ThaiVisa like a monkey in heat, all over the place and with no control

i wonder which way it will break, maybe your fortune teller, er economic team, can lead us to the promised land naam?

well well well, do i really need to say anything to the bagholders, and the funny thing is wave 2 has just started and wave 3 isn't even here yet

as far as asia is concerned...so much for decoupling etc. and as for LOS and the baht? i will continue to short the baht faster than an unemployed bargirl shortens her skirt in these turbulent times, and as for LOS? it is about to become a basket case

i can look back fondly to when i started this thread back in 2007, and can I happily say that my wallet and genius have been vindicated......

for those who listened, you have done well either by making money on the way down or by remaining unscathed and i congratulate you, for those who didn't (those folks are too many in number to mention by name), i won't rub it in, the market is doing that for you

Dow 6,804.55 -256.45

I bow to your superior knowledge of what monkeys in heat are like, but this thread is not the right place to discuss your sex life. Can I suggest you crawl the forums to find other sad little men who are self acclaimed geniuses and form a club. You could call it Boring Inferior Nonentities Going On Boringly Opinionating Nauseatingly Garbage Opinions or BINGOBONGO for short.