tag:blogger.com,1999:blog-6492542366661862113.post886163376732703838..comments2023-10-31T01:32:09.169-07:00Comments on The Housing Time Bomb: The Fed's Last BulletJeffhttp://www.blogger.com/profile/04450070920047311928noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-6492542366661862113.post-2223515243874923812009-03-19T16:29:00.000-07:002009-03-19T16:29:00.000-07:00AnonYupThe more details I read about how the AIG t...Anon<BR/><BR/>Yup<BR/><BR/>The more details I read about how the AIG thing went down the more pissed I get.<BR/><BR/>The taxpayer was flat out robbed!<BR/><BR/>It was the perfect "back door" for the FED to throw money into the banks.<BR/><BR/>The corruption and rot in DC and on Wall St has never been so out of control.<BR/><BR/>The torches better come out quick or this country is toastJeffhttps://www.blogger.com/profile/04450070920047311928noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-89589735104643291662009-03-19T15:55:00.000-07:002009-03-19T15:55:00.000-07:00The AIG bonus might just be the final straw in the...The AIG bonus might just be the final straw in the heist of the century against the American people.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-42319806191517897042009-03-19T15:14:00.000-07:002009-03-19T15:14:00.000-07:00AnonCouldn't have said it better myself.I think we...Anon<BR/><BR/>Couldn't have said it better myself.<BR/><BR/>I think we are close to seeing the social chaos. This AIG bonus nightmare might be the start of it.<BR/><BR/>There was a protest planned in front of GS tonight. I think people are going to eventually freak out as the economy gets worse and more people suffer.<BR/><BR/>The pigmen and the other elites must be stopped before they destroy this country!Jeffhttps://www.blogger.com/profile/04450070920047311928noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-789620745321547192009-03-19T14:59:00.000-07:002009-03-19T14:59:00.000-07:00I am completely out of the stock market since last...I am completely out of the stock market since last summer. Like you, I agree that we are heading toward a huge disaster and possibly social chaos. <BR/><BR/>For a speedy recovery, we need to take out all the trashes. The dirty Wall Street executives and corrupted politicians must be thrown in the slammer. Their assets have to be taken away to pay for the losses. Crappy banks and poorly run companies such as GM or AIG should just die. There are better companies out there to to take over the businesses. The bailout madness must be stopped NOW!<BR/><BR/>Consumers need to spend less and save more. Granted that will slow down the GDP. Granted there will be financial hardship for many due to loss of jobs. But eventually the country will recover.<BR/><BR/>Unfortunately there are too many crooks running the country. So I don't know how we can get rid of this ponzi scheme unless there is a social revolution.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-52148534352257332052009-03-19T13:54:00.000-07:002009-03-19T13:54:00.000-07:00AnonIf I had to guess, I don't think he had much o...Anon<BR/><BR/>If I had to guess, I don't think he had much of a choice.<BR/><BR/>The economic numbers must be so bad that he saw no alternative.<BR/><BR/>You don't QE unless you have seen a ghost. The "get out of the recession" playbook that they typically used has failed so now its time to take drastic measures. This is something much much worse.<BR/><BR/>Don't be blinded by this rally. Things are not improving. They must be getting much worse. Bernanke NEVER would have done this if things were getting better.<BR/><BR/>Raise cash for the short term! Buy hard assets for the long term as a hedge. Where we go from here is unclear. The dollar is very much at risk here. An economic collapse is very much on the table.Jeffhttps://www.blogger.com/profile/04450070920047311928noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-31160500319190420462009-03-19T13:44:00.000-07:002009-03-19T13:44:00.000-07:00Today the market shows no love toward the Fed last...Today the market shows no love toward the Fed last bullet. I read that Bernanke studied the Great Depression in great details. I am sure he had studied Japan last housing bubble well too.<BR/><BR/>Yet he decided to act on plans that have failed in history. So why repeat it given his extensive background on the subject? I am just wondering if he sees something that we don't?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-42328374867993117042009-03-18T18:02:00.000-07:002009-03-18T18:02:00.000-07:00AnonThanks!Actually it appears AIG is acting more ...Anon<BR/><BR/>Thanks!<BR/><BR/>Actually it appears AIG is acting more like the bad bank after paying out $100 billion in CDS contracts at 100% thanks to the taxpayer.<BR/><BR/>The Treaasury would be the ones setting up the bad bank. <BR/><BR/>The Fed's balance sheet is basically replacing the consumer until we get back on our feet. <BR/><BR/>Our economic system would have collapsed without their "triage". The problem is this can only be a temporary fix because they can't afford to do this forever.<BR/><BR/>The problem here is the consumer will never consume like they did because the housing bubble burst. This stops the housing ATM right in its tracks. Throw in massive unemployment and a deleveraged banking system and you have an economic nightmare consumerwise.<BR/><BR/>The Fed will be waiting for a consumer that never comes back because they don't have the ability to consume like they did when Ponzi lending was available.<BR/><BR/>We need an economic reset where assets become affordable again. The problem is the banks can't afford for assets like housing to drop to the levels at where they need to be in order to be affordable.<BR/><BR/>This gap between what the bank wants homes to be worth and what the consumer can afford is huge. This is why the bad bank is having a hard time getting off the ground.<BR/><BR/>The banks can't afford to price homes where they need to be because they would go under.<BR/><BR/>This is a disaster without a solution. the only answer is an economic reset to affordability.<BR/><BR/>I would avoid financials right now until some solution(if ever) is carved out.<BR/><BR/>JJeffhttps://www.blogger.com/profile/04450070920047311928noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-70713962322208198142009-03-18T17:34:00.000-07:002009-03-18T17:34:00.000-07:00Thanks for the blog...always informative.Do you th...Thanks for the blog...always informative.<BR/><BR/>Do you think the fed is now acting like a "bad bank"? how does this play for the financial stocks? thanks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-30010241956269872882009-03-18T16:47:00.000-07:002009-03-18T16:47:00.000-07:00@homeHere here. Cash will be king when this is all...@home<BR/><BR/>Here here. <BR/><BR/>Cash will be king when this is all said and done. <BR/><BR/>Its a sad day when there is no "safe haven" from an investment standpoint.<BR/><BR/>Whats scary is the treasury bubble may be the biggest one of all!Jeffhttps://www.blogger.com/profile/04450070920047311928noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-54477357820121086112009-03-18T15:15:00.000-07:002009-03-18T15:15:00.000-07:00may god help us all. At least I got all my money ...may god help us all. At least I got all my money back and am in the process of raising as much cash as I can. It's just pure gambling now Jeff.Anonymousnoreply@blogger.com