US GDP shrinks 2.9% in first quarter

[neverdie]

*Deleted post edited out*

You couldn't be further from the truth. I am far from an Obama supporter and I've made this clear for all to see throughout the years as I have been critical of the man and his administration, on many occassions.

However, I am just astonished at how quickly some people around here like to blame him for completely everything.

You seem to have the misconception that only Americans follow what is going on in the USA. It may be the case that the majority of Americans don't realise there's a world outside the USA, But it doesn't work the other way around, certainly not for me.

Anyway, it's time for some of you to wake up, have a good look at the short comings of your nation as a greater whole, after all it's one of the worst political systems in the world that allowed the man into power in the first place. Seriously, how long is it since you had a decent administration. And you wonder where this big whole came from and then you call me a low information voter. It's time to Wake up to yourself.

[Scott]

Off-topic, inflammatory posts and replies deleted.

[midas]

You actually need to go back to 1913 to find who was at the wheel when this disaster started. None of the recent guys have any idea what they need to do. It will not be easy as it is very close to impossible. Our big problem right now is that the little Russian knows what needs to be done and clearly we do not.

The BRICS have become tired of the US hegemony game and are making moves to dethrone the USD as the world's reserve currency... It's only a matter of time... As always, follow the money, or in this case, follow the gold... For those that don't believe it, do a bit of research before attacking the claim and you will find that this is taking place now at a far faster pace than anyone imagined...

todays news

Gazprom Ready To Drop Dollar, Settle China Contracts In Yuan Or Rubles

http://www.zerohedge.com/news/2014-06-26/gazprom-ready-drop-dollar-settle-china-contracts-yuan-or-rubles

Edited June 26, 2014 by midas

[Robert2006]

This administration's chickens coming home to roost.

UG,

The speed at which you are quick to condemn Obama is remarkable......virtually new land speed record could possibly be set IMO.

You fail to acknowledge the crisis that the governments PREVIOUS to Obamas administration, handed to him several years ago. These guys really did bake up a nice little mess on a never seen before grandeur scale (& Im being kind).

You might need to examine your hero Mr Bush and those other turds in his administration more closely if you are looking at the real reason for the current mess.

Sadly, Americans need to look no further than their own law makers for the current mess and it's got little to do with the current administration, irregardless of how long they've been in power.

Not much difference between Obama and Bush that I can see. The current mess the “subprime crisis” was caused by removal of the Glass-Segal act and that happened under Clinton. It means very little if a Democrat or a Republican is the front man for the Petro Dollar war machine the agenda more of less is the same.

[neverdie]

This administration's chickens coming home to roost.

UG,

The speed at which you are quick to condemn Obama is remarkable......virtually new land speed record could possibly be set IMO.

You fail to acknowledge the crisis that the governments PREVIOUS to Obamas administration, handed to him several years ago. These guys really did bake up a nice little mess on a never seen before grandeur scale (& Im being kind).

You might need to examine your hero Mr Bush and those other turds in his administration more closely if you are looking at the real reason for the current mess.

Sadly, Americans need to look no further than their own law makers for the current mess and it's got little to do with the current administration, irregardless of how long they've been in power.

Not much difference between Obama and Bush that I can see. The current mess the subprime crisis was caused by removal of the Glass-Segal act and that happened under Clinton. It means very little if a Democrat or a Republican is the front man for the Petro Dollar war machine the agenda more of less is the same.

THANKYOU. Most of my point. Only a certain type of narrow minded individual would attempt to blame this problem on one man. Then there's another type of individual that wants to attack the guy that simply points this out.

Anyway, clearly some Americans don't like it when a Non Citizen pokes his nose in, passing comment on an 'internal' American issue. Imagine how the rest of the world constantly feels when commented on by such an ignorant series of American Administrations over the past say, 50 odd years.

Time to clean up ones own backyard perhaps ?

Best of luck with it, as the mess effects more than just citizens of the US of A.

[impulse]

Not much difference between Obama and Bush that I can see. The current mess the “subprime crisis” was caused by removal of the Glass-Segal act and that happened under Clinton. It means very little if a Democrat or a Republican is the front man for the Petro Dollar war machine the agenda more of less is the same.

With over $700 Trillion of derivative contracts floating around (that we know about), the real world of the Petro Dollar is pretty insignificant in the scheme of things.

Someone sneezing wrong can wipe out a month of the world's GDP.

[capcc76]

This puts in perspective. No big deal. Just a bump in the road.

http://money.cnn.com/2014/06/25/news/economy/gdp-negative/

I find it hilarious that you would cite an article from CNN... The truth is that the US economy is in free-fall and TPTB have lost control, no matter how they manipulate the data... All one has to do to find the truth is to do some research instead of blindly believing what the media tells you... There is no economic recovery in the US or the world for that matter... The latest excuse is the weather... The economic situation around the world today is far, far worse than in 2008... They are now calling for a 4.0% jump in GDP in the 2nd Qtr... What excuse will be used to lie to the people when the 2nd Qtr GDP print is in the toilet again...

Here is a simple example... If the unemployment rate was calculated to same way today as it was in 1994, the unemployment rate in the US would be 41%... Do you call that a recovery?

Doom and gloom alarmist paranoia bs. Are you like holed up in a cabin in Montann reading articles about the world coming to an end and everyone needs to buy gold.

You do realize there are other economic data indicators to determine health of the economy. You do realize that the unemployment rate is whacked out due to baby boomers in the transition years that are undereducated and obsolete for the current job market and also includes college age kids working only in the summer and attending school full time?

You complain about the sad state of affairs, yet I see happy prosperous people, string tourism, job and business expansion and a recovering housing market where I live. Lol, you doom and bloomers want to talk about outliers like Detroit or other cities that have fragile evonomies driven by deep underlying social economic issues.

Paranoid doom and bloomers choosing to live under a rock and feed their dysfunction with negative information and outlier data points will always exist no matter who is in charge or the condition of the economy.

"The end is near!" Lol!

Other numbers on manufacturing, hiring and auto sales for example point to more encouraging GDP numbers for the current period. US is strong stein action and, those of us living in reality, will be just fine, the world will continue and the US will remain the land of opportunity and the best place to live in the world.

[Robert2006]

Not much difference between Obama and Bush that I can see. The current mess the “subprime crisis” was caused by removal of the Glass-Segal act and that happened under Clinton. It means very little if a Democrat or a Republican is the front man for the Petro Dollar war machine the agenda more of less is the same.

With over $700 Trillion of derivative contracts floating around (that we know about), the real world of the Petro Dollar is pretty insignificant in the scheme of things.

Someone sneezing wrong can wipe out a month of the world's GDP.

Yes I totally agree the derivative issue is frightening, but what equally scares me is what the US Military might do if the Petro Dollar is threatened. Were in trouble in the US, we had really high hopes when Obama got elected but nothing has really changed, it’s been business as usual for the war machine and the corporations. Congress has a 7% approval rating and Obama 41% those are the lowest in history. It doesn’t seem voting one way or the other changes anything, our government is so powerful they can do anything they want and get away with it.

[midas]

This puts in perspective. No big deal. Just a bump in the road.

http://money.cnn.com/2014/06/25/news/economy/gdp-negative/

I find it hilarious that you would cite an article from CNN... The truth is that the US economy is in free-fall and TPTB have lost control, no matter how they manipulate the data... All one has to do to find the truth is to do some research instead of blindly believing what the media tells you... There is no economic recovery in the US or the world for that matter... The latest excuse is the weather... The economic situation around the world today is far, far worse than in 2008... They are now calling for a 4.0% jump in GDP in the 2nd Qtr... What excuse will be used to lie to the people when the 2nd Qtr GDP print is in the toilet again...

Here is a simple example... If the unemployment rate was calculated to same way today as it was in 1994, the unemployment rate in the US would be 41%... Do you call that a recovery?

Doom and gloom alarmist paranoia bs. Are you like holed up in a cabin in Montann reading articles about the world coming to an end and everyone needs to buy gold.

You do realize there are other economic data indicators to determine health of the economy. You do realize that the unemployment rate is whacked out due to baby boomers in the transition years that are undereducated and obsolete for the current job market and also includes college age kids working only in the summer and attending school full time?

You complain about the sad state of affairs, yet I see happy prosperous people, string tourism, job and business expansion and a recovering housing market where I live. Lol, you doom and bloomers want to talk about outliers like Detroit or other cities that have fragile evonomies driven by deep underlying social economic issues.

Paranoid doom and bloomers choosing to live under a rock and feed their dysfunction with negative information and outlier data points will always exist no matter who is in charge or the condition of the economy.

"The end is near!" Lol!

Other numbers on manufacturing, hiring and auto sales for example point to more encouraging GDP numbers for the current period. US is strong stein action and, those of us living in reality, will be just fine, the world will continue and the US will remain the land of opportunity and the best place to live in the world.

" You do realize there are other economic data indicators to determine health of the economy"

yes there are indeed .....

http://www.dailyjobcuts.com/

[Loptr]

This administration's chickens coming home to roost.

UG,

The speed at which you are quick to condemn Obama is remarkable......virtually new land speed record could possibly be set IMO.

You fail to acknowledge the crisis that the governments PREVIOUS to Obamas administration, handed to him several years ago. These guys really did bake up a nice little mess on a never seen before grandeur scale (& Im being kind).

You might need to examine your hero Mr Bush and those other turds in his administration more closely if you are looking at the real reason for the current mess.

Sadly, Americans need to look no further than their own law makers for the current mess and it's got little to do with the current administration, irregardless of how long they've been in power.

Not much difference between Obama and Bush that I can see. The current mess the “subprime crisis” was caused by removal of the Glass-Segal act and that happened under Clinton. It means very little if a Democrat or a Republican is the front man for the Petro Dollar war machine the agenda more of less is the same.

Ah yes, another little gift from the likes of Larry Summers and his band of merry capitalists... All a ploy to remove the constraints in Wall Street to co-mingle investor funds with depositor funds... We all know how well that has turned out... All just more proof that Wall Street dictates government policy...

Another little gift that Larry was instrumental in was the expansion of the derivatives markets, of which is estimated to be north of $1 quadrillion USD... The manipulation of ever aspects of the equities, futures, commodities, forex markets are carried out through derivatives swaps... There are no 'free markets' any longer...

[Loptr]

This puts in perspective. No big deal. Just a bump in the road.

http://money.cnn.com/2014/06/25/news/economy/gdp-negative/

I find it hilarious that you would cite an article from CNN... The truth is that the US economy is in free-fall and TPTB have lost control, no matter how they manipulate the data... All one has to do to find the truth is to do some research instead of blindly believing what the media tells you... There is no economic recovery in the US or the world for that matter... The latest excuse is the weather... The economic situation around the world today is far, far worse than in 2008... They are now calling for a 4.0% jump in GDP in the 2nd Qtr... What excuse will be used to lie to the people when the 2nd Qtr GDP print is in the toilet again...

Here is a simple example... If the unemployment rate was calculated to same way today as it was in 1994, the unemployment rate in the US would be 41%... Do you call that a recovery?

Doom and gloom alarmist paranoia bs. Are you like holed up in a cabin in Montann reading articles about the world coming to an end and everyone needs to buy gold.

You do realize there are other economic data indicators to determine health of the economy. You do realize that the unemployment rate is whacked out due to baby boomers in the transition years that are undereducated and obsolete for the current job market and also includes college age kids working only in the summer and attending school full time?

You complain about the sad state of affairs, yet I see happy prosperous people, string tourism, job and business expansion and a recovering housing market where I live. Lol, you doom and bloomers want to talk about outliers like Detroit or other cities that have fragile evonomies driven by deep underlying social economic issues.

Paranoid doom and bloomers choosing to live under a rock and feed their dysfunction with negative information and outlier data points will always exist no matter who is in charge or the condition of the economy.

"The end is near!" Lol!

Other numbers on manufacturing, hiring and auto sales for example point to more encouraging GDP numbers for the current period. US is strong stein action and, those of us living in reality, will be just fine, the world will continue and the US will remain the land of opportunity and the best place to live in the world.

There's always one or two sheeple that bleat the same response whenever I try to pass on this message... I've got news for you, all of the numbers parroted by the US and EU governments are false, made up, untrue... As I said before, a little research is an enlightening thing... So go on believing that the status quo will continue, at your own peril... As they say, up to you...

Here's a few hints though, go check the Baltic Dry Shipping Index, exports by country and Capital Velocity and you will find that the world's economies are grinding to a halt... Then google "Chinese commodity rehypothecation scandal"... Knowledge is a wonderful thing and one can never be too old to learn... All you have to do is want to...

On the other hand, I have come quite accustomed to being berated by those that shoot first and think second, so carry on...

Edited June 26, 2014 by Loptr

[midas]

You actually need to go back to 1913 to find who was at the wheel when this disaster started. None of the recent guys have any idea what they need to do. It will not be easy as it is very close to impossible. Our big problem right now is that the little Russian knows what needs to be done and clearly we do not.

The BRICS have become tired of the US hegemony game and are making moves to dethrone the USD as the world's reserve currency... It's only a matter of time... As always, follow the money, or in this case, follow the gold... For those that don't believe it, do a bit of research before attacking the claim and you will find that this is taking place now at a far faster pace than anyone imagined...

todays news

Gazprom Ready To Drop Dollar, Settle China Contracts In Yuan Or Rubles

http://www.zerohedge.com/news/2014-06-26/gazprom-ready-drop-dollar-settle-china-contracts-yuan-or-rubles

https://www.youtube.com/watch?feature=player_detailpage&v=XFHT68-nAM4

Edited June 26, 2014 by midas

[Naam]

There's always one or two sheeple that bleat the same response whenever I try to pass on this message... I've got news for you, all of the numbers parroted by the US and EU governments are false, made up, untrue... As I said before, a little research is an enlightening thing... So go on believing that the status quo will continue, at your own peril... As they say, up to you...

Here's a few hints though, go check the Baltic Dry Shipping Index, exports by country and Capital Velocity and you will find that the world's economies are grinding to a halt... Then google "Chinese commodity rehypothecation scandal"... Knowledge is a wonderful thing and one can never be too old to learn... All you have to do is want to...

On the other hand, I have come quite accustomed to being berated by those that shoot first and think second, so carry on...

the "Baltic Dry" can be quite misleading Loptr if not checked/analysed in context with "normal" container freight rates where high value goods are shipped as opposed to the "Dry" which covers rather cheap bulk goods.

but i agree, that a YTD minus of nearly 70% should not be overlooked even though the index is still higher than 3½ years (jan 2011) ago and more or less matches the years before irrational exuberance (2004-2008) drove the index to crazy heights.

i am following the BDI since many years and could never detect any real reference to the global economy to use for investment purposes. this is what the BDI looks since inception:

[LP-BKK]

The US economy has never been in recovery since 2008 and the central planners are no longer able to hide the truth. The fact that the Dow Jones is hitting all time highs is holographic casino fantasy compared to what is really happening in the real economy. IMHO now is the time to be holding PM's or mining stocks as I think the shit will be hitting the fan properly in the very near future. Just wait until the bond market collapses with help from China and Russia

Sent from my GT-I9300T using Thaivisa Connect Thailand mobile app

[Robert2006]

This administration's chickens coming home to roost.

UG,

The speed at which you are quick to condemn Obama is remarkable......virtually new land speed record could possibly be set IMO.

You fail to acknowledge the crisis that the governments PREVIOUS to Obamas administration, handed to him several years ago. These guys really did bake up a nice little mess on a never seen before grandeur scale (& Im being kind).

You might need to examine your hero Mr Bush and those other turds in his administration more closely if you are looking at the real reason for the current mess.

Sadly, Americans need to look no further than their own law makers for the current mess and it's got little to do with the current administration, irregardless of how long they've been in power.

Not much difference between Obama and Bush that I can see. The current mess the “subprime crisis” was caused by removal of the Glass-Segal act and that happened under Clinton. It means very little if a Democrat or a Republican is the front man for the Petro Dollar war machine the agenda more of less is the same.

Ah yes, another little gift from the likes of Larry Summers and his band of merry capitalists... All a ploy to remove the constraints in Wall Street to co-mingle investor funds with depositor funds... We all know how well that has turned out... All just more proof that Wall Street dictates government policy...

Another little gift that Larry was instrumental in was the expansion of the derivatives markets, of which is estimated to be north of $1 quadrillion USD... The manipulation of ever aspects of the equities, futures, commodities, forex markets are carried out through derivatives swaps... There are no 'free markets' any longer...

Agreed there are no free markets. I suspect Larry is merely a high level minion of the 1%. Power is centralized with the elites but they not only fail to accomplish what they promise but they use secrecy and the control of information to deceive us while they loot our families and planets resources.

The elite keep us destabilized, fighting with each other, over race issues and other such things, they know if we stick together they’re finished, there is zero chance they could stop a unified people of the world. The common people don’t want wars we want free market solid economics, quality healthcare, clean affordable food, clean energy, and affordable education, we mostly all want the same things worldwide for our lives and our families.

The people are unorganized, if united the common people have more power than the 1%; according to a Harvard study the collective buying power of the five billion poor is four times that of the one billion rich. The ability for the common people of this planet to literally shut down the flows of capital into any bank, government or corporation and put them out of business overnight is real. The corruption is becoming intolerable; it’s not good there is no telling what the elite will do to us to hold onto their power.

[capcc76]

This puts in perspective. No big deal. Just a bump in the road.

http://money.cnn.com/2014/06/25/news/economy/gdp-negative/

I find it hilarious that you would cite an article from CNN... The truth is that the US economy is in free-fall and TPTB have lost control, no matter how they manipulate the data... All one has to do to find the truth is to do some research instead of blindly believing what the media tells you... There is no economic recovery in the US or the world for that matter... The latest excuse is the weather... The economic situation around the world today is far, far worse than in 2008... They are now calling for a 4.0% jump in GDP in the 2nd Qtr... What excuse will be used to lie to the people when the 2nd Qtr GDP print is in the toilet again...

Here is a simple example... If the unemployment rate was calculated to same way today as it was in 1994, the unemployment rate in the US would be 41%... Do you call that a recovery?

Doom and gloom alarmist paranoia bs. Are you like holed up in a cabin in Montann reading articles about the world coming to an end and everyone needs to buy gold.

You do realize there are other economic data indicators to determine health of the economy. You do realize that the unemployment rate is whacked out due to baby boomers in the transition years that are undereducated and obsolete for the current job market and also includes college age kids working only in the summer and attending school full time?

You complain about the sad state of affairs, yet I see happy prosperous people, string tourism, job and business expansion and a recovering housing market where I live. Lol, you doom and bloomers want to talk about outliers like Detroit or other cities that have fragile evonomies driven by deep underlying social economic issues.

Paranoid doom and bloomers choosing to live under a rock and feed their dysfunction with negative information and outlier data points will always exist no matter who is in charge or the condition of the economy.

"The end is near!" Lol!

Other numbers on manufacturing, hiring and auto sales for example point to more encouraging GDP numbers for the current period. US is strong stein action and, those of us living in reality, will be just fine, the world will continue and the US will remain the land of opportunity and the best place to live in the world.

" You do realize there are other economic data indicators to determine health of the economy"

yes there are indeed .....

http://www.dailyjobcuts.com/

Lol at what some if you guys read and the world you live in. Why not just read worldiscimingtoanend.com and be done with it. Love how these doom and gloom sites advertise and peddle precious metals.

[capcc76]

This puts in perspective. No big deal. Just a bump in the road.

http://money.cnn.com/2014/06/25/news/economy/gdp-negative/

I find it hilarious that you would cite an article from CNN... The truth is that the US economy is in free-fall and TPTB have lost control, no matter how they manipulate the data... All one has to do to find the truth is to do some research instead of blindly believing what the media tells you... There is no economic recovery in the US or the world for that matter... The latest excuse is the weather... The economic situation around the world today is far, far worse than in 2008... They are now calling for a 4.0% jump in GDP in the 2nd Qtr... What excuse will be used to lie to the people when the 2nd Qtr GDP print is in the toilet again...

Here is a simple example... If the unemployment rate was calculated to same way today as it was in 1994, the unemployment rate in the US would be 41%... Do you call that a recovery?

Doom and gloom alarmist paranoia bs. Are you like holed up in a cabin in Montann reading articles about the world coming to an end and everyone needs to buy gold.

You do realize there are other economic data indicators to determine health of the economy. You do realize that the unemployment rate is whacked out due to baby boomers in the transition years that are undereducated and obsolete for the current job market and also includes college age kids working only in the summer and attending school full time?

You complain about the sad state of affairs, yet I see happy prosperous people, string tourism, job and business expansion and a recovering housing market where I live. Lol, you doom and bloomers want to talk about outliers like Detroit or other cities that have fragile evonomies driven by deep underlying social economic issues.

Paranoid doom and bloomers choosing to live under a rock and feed their dysfunction with negative information and outlier data points will always exist no matter who is in charge or the condition of the economy.

"The end is near!" Lol!

Other numbers on manufacturing, hiring and auto sales for example point to more encouraging GDP numbers for the current period. US is strong stein action and, those of us living in reality, will be just fine, the world will continue and the US will remain the land of opportunity and the best place to live in the world.

There's always one or two sheeple that bleat the same response whenever I try to pass on this message... I've got news for you, all of the numbers parroted by the US and EU governments are false, made up, untrue... As I said before, a little research is an enlightening thing... So go on believing that the status quo will continue, at your own peril... As they say, up to you...

Here's a few hints though, go check the Baltic Dry Shipping Index, exports by country and Capital Velocity and you will find that the world's economies are grinding to a halt... Then google "Chinese commodity rehypothecation scandal"... Knowledge is a wonderful thing and one can never be too old to learn... All you have to do is want to...

On the other hand, I have come quite accustomed to being berated by those that shoot first and think second, so carry on...

Lol, I see someone in this thread linking zerohedge. I know Daniel Ivandjiiski from his Miller Buckfire days.

Believing the status quo? I actually move my money quiet well and went 80 cash in late fall of 2007 after nice profits.

[Naam]

The US economy has never been in recovery since 2008 and the central planners are no longer able to hide the truth. The fact that the Dow Jones is hitting all time highs is holographic casino fantasy compared to what is really happening in the real economy. IMHO now is the time to be holding PM's or mining stocks as I think the shit will be hitting the fan properly in the very near future. Just wait until the bond market collapses with help from China and Russia

Sent from my GT-I9300T using Thaivisa Connect Thailand mobile app

that the domestic stock market necessarily mirrors the economy of a country is a fairy tale. period!

the reason for globally mostly higher share prices is a simple one, namely cash chases yield. you get zero interest for big cash and for small amounts a pittance.

the bond market yields a sh*t compared to the good ol' times.

corporations with a rating of "B" can issue bonds and pay half or one third of the interest which they had to pay only a few years.

those who are not investing in bond niches where still rather high yields (with considerable risk!) can be achieved have to look for alternatives. an alternative is, the facts prove it, the stock market.

[Pakboong]

Obama is undoubtedly the biggest idiot and poorest decision maker we have ever had as a Preseident. The guys does nothing but talk and telegraph his every move in a foreign policy security matters. He is unbelievably weak.

That being said, all you guys blaming him for printing money,national debt and slow or bumpy growth fail to acknowledge or appreciate how expensive it was to save our banks and fill the extreme void caused by CMOs, reduction in real estate values and mass foreclosures.

the various itenerations of the QEs was necessary to fill the massive voids on baking balance sheets, not just in the US, but world wide. Most of the later QE landed on foreign bank balance sheets to bring the reserves in line, provide liquidity and keep them viable. QE was also needed to plug the massive debt voids caused by the decision to have the government guarantee CMO bonds. A move without precedent and reflects who knew what and when and who was determined to line their pockets when they knew this would ultimately take banks down. Then the AIG credit swaps . . .

Yes, Obama is stupid and weak, but many involved in and backing the Bush administration was corrupt and seemed to focus more on personally profiting than adverting a problem that eventually almost took down the world banking system and the entire insurance industry. If we lost AIG, it would have taken most of the rest with them due to reinsurance structure.

The banking sector has produced the lion's share of billionaires on the planet so I guess we had to bail them out at the prospect of them not getting a large enouh bonus. It is really hard to feel sorry for the banking establishment. They seem to do very little of what we the people actually need or want in relation to their compensation which is incredible. Perhaps it is an all or nothing situation with them but that is just too bad. They act as predators and we don't really need predators in that particular role.

[retarius]

It was all weather related and the second, third and fourth quarters will come in around +3.5%. Hoping that finishing the taper and the strong second half kick off some inflationary pressures so we can get some bond yields!

Sent from my iPhone using Thaivisa Connect Thailand

Yes weather related which is missing from this article...I wonder why?

To the Obama haters, where will you be at the end of the second quarter when the economy rebounds? Not mentioning the growth but inventing some other silly reasons to hate Obama. No developed nation has good growth figures following this recession...debt-fueled, binge capitalism as a system is failing...how much unnecessary stuff do we need to buy and go into debt for?

[Naam]

Obama is undoubtedly the biggest idiot and poorest decision maker we have ever had as a Preseident. The guys does nothing but talk and telegraph his every move in a foreign policy security matters. He is unbelievably weak.

That being said, all you guys blaming him for printing money,national debt and slow or bumpy growth fail to acknowledge or appreciate how expensive it was to save our banks and fill the extreme void caused by CMOs, reduction in real estate values and mass foreclosures.

the various itenerations of the QEs was necessary to fill the massive voids on baking balance sheets, not just in the US, but world wide. Most of the later QE landed on foreign bank balance sheets to bring the reserves in line, provide liquidity and keep them viable. QE was also needed to plug the massive debt voids caused by the decision to have the government guarantee CMO bonds. A move without precedent and reflects who knew what and when and who was determined to line their pockets when they knew this would ultimately take banks down. Then the AIG credit swaps . . .

Yes, Obama is stupid and weak, but many involved in and backing the Bush administration was corrupt and seemed to focus more on personally profiting than adverting a problem that eventually almost took down the world banking system and the entire insurance industry. If we lost AIG, it would have taken most of the rest with them due to reinsurance structure.

The banking sector has produced the lion's share of billionaires on the planet so I guess we had to bail them out at the prospect of them not getting a large enouh bonus. It is really hard to feel sorry for the banking establishment. They seem to do very little of what we the people actually need or want in relation to their compensation which is incredible. Perhaps it is an all or nothing situation with them but that is just too bad. They act as predators and we don't really need predators in that particular role.

unfortunately the predators are here to stay and we have to live with it.

[impulse]

The banking sector has produced the lion's share of billionaires on the planet so I guess we had to bail them out at the prospect of them not getting a large enouh bonus. It is really hard to feel sorry for the banking establishment. They seem to do very little of what we the people actually need or want in relation to their compensation which is incredible. Perhaps it is an all or nothing situation with them but that is just too bad. They act as predators and we don't really need predators in that particular role.

unfortunately the predators are here to stay and we have to live with it.

We only have to live with them because our politicians are too weak to tax the gains on dodgy derivative transactions at a rate sufficient to indemnify us for the systemic risk.

Privatizing the gains while John Q Public takes on the risk.

Tax the gains on "investments" that create no jobs or value to the world at 95%, and maybe some of that tied up money will actually be lent out to entrepreneurs and businesses that can actually benefit the world.

Claw back the bonuses of every bankster (retroactively, with interest and penalties) whose employer went bankrupt or required bailing out, and see if they may act more responsibly next time around.

Edited June 27, 2014 by impulse

[capcc76]

Obama is undoubtedly the biggest idiot and poorest decision maker we have ever had as a Preseident. The guys does nothing but talk and telegraph his every move in a foreign policy security matters. He is unbelievably weak.

That being said, all you guys blaming him for printing money,national debt and slow or bumpy growth fail to acknowledge or appreciate how expensive it was to save our banks and fill the extreme void caused by CMOs, reduction in real estate values and mass foreclosures.

the various itenerations of the QEs was necessary to fill the massive voids on baking balance sheets, not just in the US, but world wide. Most of the later QE landed on foreign bank balance sheets to bring the reserves in line, provide liquidity and keep them viable. QE was also needed to plug the massive debt voids caused by the decision to have the government guarantee CMO bonds. A move without precedent and reflects who knew what and when and who was determined to line their pockets when they knew this would ultimately take banks down. Then the AIG credit swaps . . .

Yes, Obama is stupid and weak, but many involved in and backing the Bush administration was corrupt and seemed to focus more on personally profiting than adverting a problem that eventually almost took down the world banking system and the entire insurance industry. If we lost AIG, it would have taken most of the rest with them due to reinsurance structure.

The banking sector has produced the lion's share of billionaires on the planet so I guess we had to bail them out at the prospect of them not getting a large enouh bonus. It is really hard to feel sorry for the banking establishment. They seem to do very little of what we the people actually need or want in relation to their compensation which is incredible. Perhaps it is an all or nothing situation with them but that is just too bad. They act as predators and we don't really need predators in that particular role.

Banking, mortgage brokers and security industry is extremely regulated since 2008, almost harshly. I agree they brought this on themselves due to the few bad apples exploiting the system.

The part that absolutely astonishes me is how the Bush administration was either ignorant or just a sleep at the wheel. Most everyone in the financial industry and insurance industry say this coming for several years and the administration did nothing, absolutely nothing to stop it.

We knew AIG was in trouble and losing liquidity in 2004/2005. This was bleeding over into CNA and other large insurers in reinsurance market because of about $450 mil in CDS protection that AIG could not cover. There was something like $70 trillion CDS floating around worldwide.

Banks all over the world had purchased protection for CDS from AIG and failure of AIG could have brought down the entire WORLD financial and banking industry. This was not just a US problem.

What was Bush administration doing or thinking? We has whistleblowers and insiders telling everyone that would listen that AIG, CDS and CMOs were tanking. No one did anything and the CMO, CDS and credit swap market increased exponentially between 2005 and late 2007 and now we had huge amounts of Americans with their retirement and pension funds being placed into funds with large allocations to CMOs, CDS and CDOs.

Move forward to 2007. We all knew in 2007 what was going to happen and friends of mine even called the Quarter in which it would happen. Most us went 70% to 100%, got out of any funds with CDO or CMOs in the portfolio and ran like hell from financial securities.

Again, this was no secret. Everyone with any sense knew wheels would eventually come off in 2005/2006 and suspected it as early as 2004. Everyone except those that could have actually done something to stop the progression in our government.

That being said, our banking industry is currently very sound. No reason for alarm. The lesson learned is don't get greedy. We all where. I had investments and real estate appreciating 25% per quarter in 2004/2005. I suppose some just thought this would never stop and administration was too busy patting itself on the back and taking credit for wealth expansion in 2002-2007.

[capcc76]

Obama is undoubtedly the biggest idiot and poorest decision maker we have ever had as a Preseident. The guys does nothing but talk and telegraph his every move in a foreign policy security matters. He is unbelievably weak.

That being said, all you guys blaming him for printing money,national debt and slow or bumpy growth fail to acknowledge or appreciate how expensive it was to save our banks and fill the extreme void caused by CMOs, reduction in real estate values and mass foreclosures.

the various itenerations of the QEs was necessary to fill the massive voids on baking balance sheets, not just in the US, but world wide. Most of the later QE landed on foreign bank balance sheets to bring the reserves in line, provide liquidity and keep them viable. QE was also needed to plug the massive debt voids caused by the decision to have the government guarantee CMO bonds. A move without precedent and reflects who knew what and when and who was determined to line their pockets when they knew this would ultimately take banks down. Then the AIG credit swaps . . .

Yes, Obama is stupid and weak, but many involved in and backing the Bush administration was corrupt and seemed to focus more on personally profiting than adverting a problem that eventually almost took down the world banking system and the entire insurance industry. If we lost AIG, it would have taken most of the rest with them due to reinsurance structure.

The banking sector has produced the lion's share of billionaires on the planet so I guess we had to bail them out at the prospect of them not getting a large enouh bonus. It is really hard to feel sorry for the banking establishment. They seem to do very little of what we the people actually need or want in relation to their compensation which is incredible. Perhaps it is an all or nothing situation with them but that is just too bad. They act as predators and we don't really need predators in that particular role.

unfortunately the predators are here to stay and we have to live with it.

Lol, its takes greedy, ignorant people to feed the so called predators in the financial industry. Seriously, you can walk around thinking banks and bankers are predators if it gives you warm and fuzzies, but it really just shows a lack of grasp on the real problems.

Banking is business. They are in it to make money. Corporations are perhaps worse than banking at gouging consumers, paying their employees crap and providing crappy benefits.

Lets take CMOs from 2001-2007 as an example. Who do you blame? We had greedy private investors flipping property with high credit scores, huge wealth and solid cash flow taking mortgages out at an alarming rate. They met banking criteria for loans and everything would have been fine but for the sudden dramatic decrease in home values. What caused that? Not bank.

We also had many unscrupulous investors and real estate appraisers manipulating home values to obtain 100% loans and realize profits on quick flips. Banks were at their mercy here.

From 2001-2007, we had many young and minority individuals with marginal or poor credit attempting live the American dream and buy a home. A very large percentage of these individuals lied in their applications and reported inflated income. Private mortgage companies cared little, got the loans and banks ended with this bad paper by purchasing as upstream lenders (ala, Countrywide/BofA).

So why blame the bank when the greedy consumer applied for loans, provided false information on loan documents private mortgage companies assisted in the deception and government fair housing entities are raising hell about fair lending practices and making sure minorities also live the American dream and buy a house.

BTW, I use the minority example not to be a racist, but there was a lot of government pressure on financial institutions to extend loans to minorities and provide mortgages for minorities. Bush administration certainly liked this as it spurred economic growth short term through a huge increase in the sale of homes. The problem was long term inability of these individuals to pay their debt for these homes so now we have failed loans and a lot of empty houses with no eligible buyers.

[midas]

The banking sector has produced the lion's share of billionaires on the planet so I guess we had to bail them out at the prospect of them not getting a large enouh bonus. It is really hard to feel sorry for the banking establishment. They seem to do very little of what we the people actually need or want in relation to their compensation which is incredible. Perhaps it is an all or nothing situation with them but that is just too bad. They act as predators and we don't really need predators in that particular role.

Banking, mortgage brokers and security industry is extremely regulated since 2008, almost harshly. I agree they brought this on themselves due to the few bad apples exploiting the system.

The part that absolutely astonishes me is how the Bush administration was either ignorant or just a sleep at the wheel. Most everyone in the financial industry and insurance industry say this coming for several years and the administration did nothing, absolutely nothing to stop it.

We knew AIG was in trouble and losing liquidity in 2004/2005. This was bleeding over into CNA and other large insurers in reinsurance market because of about $450 mil in CDS protection that AIG could not cover. There was something like $70 trillion CDS floating around worldwide.

Banks all over the world had purchased protection for CDS from AIG and failure of AIG could have brought down the entire WORLD financial and banking industry. This was not just a US problem.

What was Bush administration doing or thinking? We has whistleblowers and insiders telling everyone that would listen that AIG, CDS and CMOs were tanking. No one did anything and the CMO, CDS and credit swap market increased exponentially between 2005 and late 2007 and now we had huge amounts of Americans with their retirement and pension funds being placed into funds with large allocations to CMOs, CDS and CDOs.

Move forward to 2007. We all knew in 2007 what was going to happen and friends of mine even called the Quarter in which it would happen. Most us went 70% to 100%, got out of any funds with CDO or CMOs in the portfolio and ran like hell from financial securities.

Again, this was no secret. Everyone with any sense knew wheels would eventually come off in 2005/2006 and suspected it as early as 2004. Everyone except those that could have actually done something to stop the progression in our government.

That being said, our banking industry is currently very sound. No reason for alarm. The lesson learned is don't get greedy. We all where. I had investments and real estate appreciating 25% per quarter in 2004/2005. I suppose some just thought this would never stop and administration was too busy patting itself on the back and taking credit for wealth expansion in 2002-2007.

" That being said, our banking industry is currently very sound."

Rubbish! Even George Soros said the US banking system is " effectively insolvent "

" Banking, mortgage brokers and security industry is extremely regulated since 2008, almost harshly."

The $700 trillion derivatives market is not regulated at all and Alan Greenspan, even refuses to explain why he even fought tooth and nail to keep it that way

Edited June 27, 2014 by midas

[midas]

Obama is undoubtedly the biggest idiot and poorest decision maker we have ever had as a Preseident. The guys does nothing but talk and telegraph his every move in a foreign policy security matters. He is unbelievably weak.

That being said, all you guys blaming him for printing money,national debt and slow or bumpy growth fail to acknowledge or appreciate how expensive it was to save our banks and fill the extreme void caused by CMOs, reduction in real estate values and mass foreclosures.

the various itenerations of the QEs was necessary to fill the massive voids on baking balance sheets, not just in the US, but world wide. Most of the later QE landed on foreign bank balance sheets to bring the reserves in line, provide liquidity and keep them viable. QE was also needed to plug the massive debt voids caused by the decision to have the government guarantee CMO bonds. A move without precedent and reflects who knew what and when and who was determined to line their pockets when they knew this would ultimately take banks down. Then the AIG credit swaps . . .

Yes, Obama is stupid and weak, but many involved in and backing the Bush administration was corrupt and seemed to focus more on personally profiting than adverting a problem that eventually almost took down the world banking system and the entire insurance industry. If we lost AIG, it would have taken most of the rest with them due to reinsurance structure.

The banking sector has produced the lion's share of billionaires on the planet so I guess we had to bail them out at the prospect of them not getting a large enouh bonus. It is really hard to feel sorry for the banking establishment. They seem to do very little of what we the people actually need or want in relation to their compensation which is incredible. Perhaps it is an all or nothing situation with them but that is just too bad. They act as predators and we don't really need predators in that particular role.

unfortunately the predators are here to stay and we have to live with it.

Lol, its takes greedy, ignorant people to feed the so called predators in the financial industry. Seriously, you can walk around thinking banks and bankers are predators if it gives you warm and fuzzies, but it really just shows a lack of grasp on the real problems.

Banking is business. They are in it to make money. Corporations are perhaps worse than banking at gouging consumers, paying their employees crap and providing crappy benefits.

Lets take CMOs from 2001-2007 as an example. Who do you blame? We had greedy private investors flipping property with high credit scores, huge wealth and solid cash flow taking mortgages out at an alarming rate. They met banking criteria for loans and everything would have been fine but for the sudden dramatic decrease in home values. What caused that? Not bank.

We also had many unscrupulous investors and real estate appraisers manipulating home values to obtain 100% loans and realize profits on quick flips. Banks were at their mercy here.

From 2001-2007, we had many young and minority individuals with marginal or poor credit attempting live the American dream and buy a home. A very large percentage of these individuals lied in their applications and reported inflated income. Private mortgage companies cared little, got the loans and banks ended with this bad paper by purchasing as upstream lenders (ala, Countrywide/BofA).

So why blame the bank when the greedy consumer applied for loans, provided false information on loan documents private mortgage companies assisted in the deception and government fair housing entities are raising hell about fair lending practices and making sure minorities also live the American dream and buy a house.

BTW, I use the minority example not to be a racist, but there was a lot of government pressure on financial institutions to extend loans to minorities and provide mortgages for minorities. Bush administration certainly liked this as it spurred economic growth short term through a huge increase in the sale of homes. The problem was long term inability of these individuals to pay their debt for these homes so now we have failed loans and a lot of empty houses with no eligible buyers.

" Banking is business. They are in it to make money "

Yes by advising their clients ( or muppets ) to do one thing and then simultaneously doing the opposite.

[impulse]

The banking sector has produced the lion's share of billionaires on the planet so I guess we had to bail them out at the prospect of them not getting a large enouh bonus. It is really hard to feel sorry for the banking establishment. They seem to do very little of what we the people actually need or want in relation to their compensation which is incredible. Perhaps it is an all or nothing situation with them but that is just too bad. They act as predators and we don't really need predators in that particular role.

unfortunately the predators are here to stay and we have to live with it.

So why blame the bank when the greedy consumer applied for loans, provided false information on loan documents private mortgage companies assisted in the deception and government fair housing entities are raising hell about fair lending practices and making sure minorities also live the American dream and buy a house.

Because it wasn't the greedy consumer who couldn't pay his liar loan that collapsed the system. It was the banks who packaged those loans into securities, the other banks that packaged those security products into un-understandable derivative products worth many times what the actual underlying mortgages were worth, and the insurance companies that wrote insurance basically guarantying they couldn't actually cover their obligations if those derivative products did lose value.

Had it just been the collapse in the real estate market prices, we'd have been in the clear by 2009-1/2.

But flash forward to 2014, and the poor liars who had the loans are screwed, along with everyone whose home lost value- most of them just hard working people with their life savings tied up in their simple dream of owning a home. And the banks are now carrying over $700 Trillion of those same dodgy derivative products. Or, I should say, the public is exposed to over $700 Trillion of those derivative products, because the banks can't cover their bets. And if the price of oil goes up, or there's a bad harvest in Sri Lanka, or copper goes down, or God only knows what unforeseeable trigger, the system will collapse again. Because nobody understands what's wrapped up in those $700 Trillion of derivatives. They don't care about risking the life savings and retirements of billions of people, as long as they're getting richer.

Edited June 27, 2014 by impulse

[Naam]

[NeverSure]

What was the topic again? The Bush administration and derivative packages?

I thought the topic was a decline in the US economy in the first quarter of this year due to extremely harsh weather, after 6 years and 7 trillion in spending by the Obama administration.

I think 100 years from now, whatever is bad in the US will be blamed on Bush (who I can't stand, but I do like the truth.)

How about the OP topic where the economy shrank for one quarter on Obama's watch, 6 years into his administration?

[capcc76]

Banking, mortgage brokers and security industry is extremely regulated since 2008, almost harshly. I agree they brought this on themselves due to the few bad apples exploiting the system.

The part that absolutely astonishes me is how the Bush administration was either ignorant or just a sleep at the wheel. Most everyone in the financial industry and insurance industry say this coming for several years and the administration did nothing, absolutely nothing to stop it.

We knew AIG was in trouble and losing liquidity in 2004/2005. This was bleeding over into CNA and other large insurers in reinsurance market because of about $450 mil in CDS protection that AIG could not cover. There was something like $70 trillion CDS floating around worldwide.

Banks all over the world had purchased protection for CDS from AIG and failure of AIG could have brought down the entire WORLD financial and banking industry. This was not just a US problem.

What was Bush administration doing or thinking? We has whistleblowers and insiders telling everyone that would listen that AIG, CDS and CMOs were tanking. No one did anything and the CMO, CDS and credit swap market increased exponentially between 2005 and late 2007 and now we had huge amounts of Americans with their retirement and pension funds being placed into funds with large allocations to CMOs, CDS and CDOs.

Move forward to 2007. We all knew in 2007 what was going to happen and friends of mine even called the Quarter in which it would happen. Most us went 70% to 100%, got out of any funds with CDO or CMOs in the portfolio and ran like hell from financial securities.

Again, this was no secret. Everyone with any sense knew wheels would eventually come off in 2005/2006 and suspected it as early as 2004. Everyone except those that could have actually done something to stop the progression in our government.

That being said, our banking industry is currently very sound. No reason for alarm. The lesson learned is don't get greedy. We all where. I had investments and real estate appreciating 25% per quarter in 2004/2005. I suppose some just thought this would never stop and administration was too busy patting itself on the back and taking credit for wealth expansion in 2002-2007.

" That being said, our banking industry is currently very sound."

Rubbish! Even George Soros said the US banking system is " effectively insolvent "

" Banking, mortgage brokers and security industry is extremely regulated since 2008, almost harshly."

The $700 trillion derivatives market is not regulated at all and Alan Greenspan, even refuses to explain why he even fought tooth and nail to keep it that way

LOl, who can argue with a man that reads and listens to dailyjodcuts.com, zerohedge and George Soros! Love it!

George Soros is a rich and controversial guys with ulterior motives. Does he not want American banking to fail and become dependent upon international groups. Does he not want more power for the World Bank and IMF. Understanding him and his motives may shed some light on what he says. Did he not become rich through manipulating currency to the detriments of regular folks. Did Thailand refer to him as an economic criminal. Did Malaysia make some pretty strong statements about his currency activities during the 1997 Asian financial crisis?

There are some troubling aspects about derivative markets, but I am guessing you know very little about current derivatives and base your beliefs off what outlier websites focus on or perhaps take out of context.

By all means man, if it makes you feel warm and fuzzy . . . keep your money under your mattress or burry it tin cans like Cousin Eddie on Vegas Vacation. I suppose gold hoarders living in fear and worry want to see banking collapse. Keep wanting and wishing if it makes you happy, but you really should just enjoy life, stop worrying or you are going to be disappointed when everything does not go down the tubes and the world does not come to end.