Financial Crisis

[ronz28]

No surprises they cannot agree - will never agree - so a split is coming North/South .. with France in the South ?

European leaders split over solution to euro debt crisis

http://www.irishtime...4302760504.html

Must it be a total split all at once or could they experiment and observe the reaction by cutting off the worst offender, Greece? This would serve as a warning to others that the financial jeopardy that Greece got itself in will not be tolerated. A gradual change may be better than a sudden split for the EU if some countries don't have the will to improve by reducing their debts and unfunded benefit liabilities.

[manarak]

No surprises they cannot agree - will never agree - so a split is coming North/South .. with France in the South ?

European leaders split over solution to euro debt crisis

http://www.irishtime...4302760504.html

Must it be a total split all at once or could they experiment and observe the reaction by cutting off the worst offender, Greece? This would serve as a warning to others that the financial jeopardy that Greece got itself in will not be tolerated. A gradual change may be better than a sudden split for the EU if some countries don't have the will to improve by reducing their debts and unfunded benefit liabilities.

From my point of view, the Eurozone is fcuked anyway, regardless of whether they cut off Greece or not.

Cutting off Greece will not:

- create jobs

- facilitate exports

- reduce healthcare expenses

- raise birth rates or decimate pensioners

- get rid of career-politicians

- etc.

I also think that the Swiss Franc is about to strengthen again, and I really really hope I am right.

And Germany made its two biggest mistakes in a row:

1 Ostmark = 1 Deutsche Mark

and then the introduction of the (T)EURO (in German, 'teuer' means expensive - the introduction of the EURO caused inflation in Germany, but it was hidden from the public)

Before that, Germany was the world's first exporting country, before USA and before China.

Edited August 20, 2011 by manarak

[ronz28]

Class warfare in the U.S.

http://www.thedailyshow.com/watch/thu-august-18-2011/world-of-class-warfare---warren-buffett-vs--wealthy-conservatives?

[manarak]

Class warfare in the U.S.

http://www.thedailyshow.com/watch/thu-august-18-2011/world-of-class-warfare---warren-buffett-vs--wealthy-conservatives?

I'm always puzzled as why it is called class warfare as 90% of people fighting in that war have no class.

...I'll get me hat

Edited August 20, 2011 by manarak

[BEENTHEREDONETHAT]

Interesting I just heard on the news that a lot of people are paying off their credit cards and ignoring their mortgages. They basically don't have enough money to pay both so they look around and find that a lot of neighbors are not paying on the mortgage and have been living in the house for over a year without payments. So chances are the government will bail you out of your mortgage but won't help with your credit card. That means the back log on foreclosures is building even more. You can now refinance at 3.6% for 15 years if the house isn't underwater and comparable houses justify the price.

[Naam]

And Germany made its two biggest mistakes in a row:

1 Ostmark = 1 Deutsche Mark

and then the introduction of the (T)EURO (in German, 'teuer' means expensive - the introduction of the EURO caused inflation in Germany, but it was hidden from the public)

Before that, Germany was the world's first exporting country, before USA and before China.

inspite of the Ostmark mistake Germany was #1 exporting country and lost its "champion belt" to China only in 2009/10 (the jury's verdict which of these two year is not clear).

[Naam]

Must it be a total split all at once or could they experiment and observe the reaction by cutting off the worst offender, Greece? This would serve as a warning to others that the financial jeopardy that Greece got itself in will not be tolerated. A gradual change may be better than a sudden split for the EU if some countries don't have the will to improve by reducing their debts and unfunded benefit liabilities.

the problem is that Greece can withdraw from the monetary union but can't be cut off. the €U founding clowns fathers did not embed any legal provision for a case like that in the charta. another big flaw is that any shitty tiny or insignificant country possesses an indirect veto as all decisions have to be unanimous.

[Naam]

Class warfare in the U.S.

http://www.thedailyshow.com/watch/thu-august-18-2011/world-of-class-warfare---warren-buffett-vs--wealthy-conservatives?

I'm always puzzled as why it is called class warfare as 90% of people fighting in that war have no class.

...I'll get me hat

a good one Manarak!

[cloudhopper]

Interesting interview -

[churchill]

Class warfare in the U.S.

http://www.thedailyshow.com/watch/thu-august-18-2011/world-of-class-warfare---warren-buffett-vs--wealthy-conservatives?

the next segment also

see Jon Stewart: The Poor's Free Ride Is Over

http://jessescrossroadscafe.blogspot.com/2011/08/jon-stewart-poors-free-ride-is-over.html?utm_source=feedburner&utm_medium=twitter&utm_campaign=Feed%3A+JessesCafeAmericain+%28Jesse%27s+Café+Américain%29

[12DrinkMore]

Ratings?

Worth the pixels they organise on your screen?

http://www.businessinsider.com/moodys-analyst-conflicts-corruption-and-greed-2011-8

A former senior analyst at Moody's has gone public with his story of how one of the country's most important rating agencies is corrupted to the core

Moody's analysts whose conclusions prevent Moody's clients from getting what they want, Harrington says, are viewed as "impeding deals" and, thus, harming Moody's business. These analysts are often transferred, disciplined, "harassed," or fired.In short, Harrington describes a culture of conflict that is so pervasive that it often renders Moody's ratings useless at best and harmful at worst.

Why am I not even disappointed?

Indeed, in the smoke, mirrors, and general bullshit that pervades the financial world, there is nothing more to be believed in.

It offers promises of future wealth, but all it delivers is to send populations into abject poverty, bribing the politicians along the way.

This disconnect between the numbers in the real world of physical goods and the numbers bandied around in the cyber-finance world has taken place. There is now absolutely no relationship between a Dollar earned through real work and a Dollar earned by pressing a few buttons on a keyboard.

All our problems are due to these cyber-Dollars finding their way into the real world and destroying the real Dollars.

Edited August 21, 2011 by 12DrinkMore

[flying]

Indeed, in the smoke, mirrors, and general bullshit that pervades the financial world, there is nothing more to be believed in.

The system is beautifully broken. We have known it for sometime.

We keep hoping somehow we were wrong but around every turn we find more proof.

[midas]

Indeed, in the smoke, mirrors, and general bullshit that pervades the financial world, there is nothing more to be believed in.

The system is beautifully broken. We have known it for sometime.

We keep hoping somehow we were wrong but around every turn we find more proof.

or as they said in the movie The Matrix " taking the red pill would let you "stay in Wonderland" and you would see how deep the rabbit hole goes".

Edited August 22, 2011 by midas

[flying]

the next segment also

see Jon Stewart: The Poor's Free Ride Is Over

http://jessescrossroadscafe.blogspot.com/2011/08/jon-stewart-poors-free-ride-is-over.html?utm_source=feedburner&utm_medium=twitter&utm_campaign=Feed%3A+JessesCafeAmericain+%28Jesse%27s+Café+Américain%29

That Jon Stewart had me in tears laughing over that one.

I never realized how many great shows he did on Ron Paul also.

Seems he is a big fan....

[cloudhopper]

Good review and outlook re China as well as Europe in the global financial crisis -

http://globaleconomicanalysis.blogspot.com/2011/08/michael-pettis-long-term-outlook-for.html

[Naam]

Good review and outlook re China as well as Europe in the global financial crisis -

http://globaleconomicanalysis.blogspot.com/2011/08/michael-pettis-long-term-outlook-for.html

only time will tell whether both reviews (Pettis' and Mish's) are good or just the evaluation of the results achieved by poking their noses.

my 2 Satang worth comments are: i admire courage and it takes courage to present prophecies stretching not only nearly a decade into the future but contain also dates and percentages relevant for specific years to come. my admiration for courage is not diminished even though i consider two thirds of these prophecies are pure refined rubbish nothing but speculation partly based on assumptions and other parts completely unfounded.

:jap:

[cloudhopper]

Take a whiff - http://www.nakedcapitalism.com/2011/08/corrupt-obama-administration-pressuring-new-york-attorney-general-to-support-mortgage-whitewash.html

[flying]

I'm sure Standard & Poors's saw this coming

Don't play ball & they send the ump's after ya

http://money.cnn.com/2011/08/18/news/companies/sp_investigation_mortgages/index.htm

http://www.alan.com/2011/08/14/standard-and-poors-being-investigated-for-insider-trading/

http://www.thedailyshow.com/watch/thu-august-18-2011/what-are-you-<deleted>--nuts-over-there----payback-s-a-bitch---new-jersey-gets-downgraded

Edited August 23, 2011 by flying

[midas]

Take a whiff - http://www.nakedcapitalism.com/2011/08/corrupt-obama-administration-pressuring-new-york-attorney-general-to-support-mortgage-whitewash.html

“when the social contract is broken, there must be revolution.”

English philosopher John Locke

[midas]

Hey Abrak it's funny how you pilloried me so many times over in the other “ fred ” together with that compulsive gambler Zorro

I lost track how many times you said I knew absolutely nothing about the stock market ( but I can recognise corruption and manipulation) and that all my insinuations that it was a rigged game were laughable and that the US government would never have the ability to manipulate or control it

well who would have thought

“ Back in October 1989, a guy named Robert Heller, who had just quit his post as a Fed governor, suggested that the government should purchase stock index futures contracts to calm the markets in times of distress.

"The Fed could support the stock market directly by buying market averages in the futures market, thus stabilizing the market as a whole," Heller wrote in an op-ed piece in The Wall Street Journal after saying the same thing in a little-noticed speech. "The stock market is certainly not too big for the Fed to handle."…

This is a rather odd turn of events… a former Fed official urges the Fed to step in and buy the stock market… just three hours before the markets mysteriously reverses and rallies hard on no real news of note.

http://www.zerohedge.com/contributed/did-fed-buy-market-stop-collapse

Next I suppose that you will say its impossible simply because it was posted on ZH.

Edited August 23, 2011 by midas

[12DrinkMore]

Looks like the FED will continue is long tradition of supporting assets bubbles. Here comes the next FED put.

http://finance.yahoo.com/news/Bernanke-May-Have-to-Go-for-cnbc-588416807.html?x=0

"If the Fed really is going to go down the route of another round of unconventional policy making, I think they've got to go in for, what I called, shock and awe," Russell Jones, Global Head of Fixed Income Strategy at Westpac Institutional Bank told CNBC on Monday."The problem from Bernanke's point of view is that, really, he is beholden to price action in equity markets, which is not something really where any central bank wants to be."

Jones believes the pressure on Bernanke to respond with a policy move will be "absolutely overwhelming" if theU.S. stock market sees further selloff. He thinks the trigger point would be a decline of a further 10 percent from the current levels. The recent stock market rout has already wiped out more than 10 percent from major indices.

Buy more gold, I suppose.

Edited August 23, 2011 by 12DrinkMore

[BlackJack]

If you want to make some money then short the bank of America as its going bankrupt

this is not financial advice

[12DrinkMore]

Those blasted Baby Boomers are up to their tricks again. Back on the Ski slopes (spending the kids' inheritance)

http://www.bloomberg.com/news/2011-08-22/baby-boomers-selling-shares-may-depress-stocks-for-decades-fed-paper-says.html

Aging baby boomers may hold down U.S. stock values for the next two decades as they sell their investments to finance retirement, according to researchers from the Federal Reserve Bank of San Francisco.Americans born between 1946 and 1964 are beginning to retire as the U.S. stock market is still recovering from the financial crisis that began in 2007 with the collapse of the subprime-mortgage market. The timing is "disconcerting" and, since stock prices have been closely tied to demographic trends in the past half century, "portends poorly for equity values," adviser Zheng Liu and researcher Mark Spiegel wrote in a paper released by the bank today.

Inconsiderate bunch, one and all......

....OH! That's me TOO!

The original is here

http://www.frbsf.org/publications/economics/letter/2011/el2011-26.html?utm_source=home

The model-generated path for real stock prices implied by demographic trends is quite bearish. Real stock prices follow a downward trend until 2021, cumulatively declining about 13% relative to 2010. The subsequent recovery is quite slow. Indeed, real stock prices are not expected to return to their 2010 level until 2027. On the brighter side, as the M/O ratio rebounds in 2025, we should expect a strong stock price recovery. By 2030, our calculations suggest that the real value of equities will be about 20% higher than in 2010.

Oh! Oh! Oh!

15 year Geithner bum-wipes are looking like a solid investment. No wonder they are selling well.

There will be more than a few pension schemes coming up short of cash if that forecast is anywhere near accurate.

Over to you, Ben....

Edited August 23, 2011 by 12DrinkMore

[12DrinkMore]

A collection of Farage

[midas]

Why are you so transfixed with what's going on in Yankee land? We'll land on our feet, as always.

hmmm........I wonder is that statement a reflection of " confidence " or " arrogance "?

" America is deeply infused with arrogance, denial, narcissism, drugs and violence. There is no other society that I know of that has the degree of intensity and combination of these factors."

5 Reasons Why American Riots Will Be The Worst In The World

http://dont-tread-on.me/5-reasons-why-american-riots-will-be-the-worst-in-the-world/

[Naam]

Why are you so transfixed with what's going on in Yankee land? We'll land on our feet, as always.

hmmm........I wonder is that statement a reflection of " confidence " or " arrogance "?

" America is deeply infused with arrogance, denial, narcissism, drugs and violence. There is no other society that I know of that has the degree of intensity and combination of these factors."

5 Reasons Why American Riots Will Be The Worst In The World

http://dont-tread-on.me/5-reasons-why-american-riots-will-be-the-worst-in-the-world/

you did not answer JimGant's question Midas.

[midas]

Why are you so transfixed with what's going on in Yankee land? We'll land on our feet, as always.

hmmm........I wonder is that statement a reflection of " confidence " or " arrogance "?

" America is deeply infused with arrogance, denial, narcissism, drugs and violence. There is no other society that I know of that has the degree of intensity and combination of these factors."

5 Reasons Why American Riots Will Be The Worst In The World

http://dont-tread-on.me/5-reasons-why-american-riots-will-be-the-worst-in-the-world/

you did not answer JimGant's question Midas.

yes I did in post #9953

[flying]

Lots of common sense in this one

Nouriel Roubini: Karl Marx Was Right

Edited August 24, 2011 by flying

[flying]

Housing crisis is over for some

Squatters Are Taking Over Detroit's 100,000 Vacant Homes

[Naam]

Housing crisis is over for some

Squatters Are Taking Over Detroit's 100,000 Vacant Homes

a country that gives squatters any rights is a shit² country!