A quarter million in principle appreciation overe 2 months in a bear market like this? He must be day trading with 10 million dallars principle. I wish i was his broker.
Maybe i am. I own some bank stocks.
recession
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Maybe i am. I own some bank stocks.
Japan has tried everything that Obama is perposing and none of it has worked and has actually backfired.
Who the hell is advising this guy? His ideas are a carbon copy of Japans ideas ever since 1992. Endless stimulus packages and public works projects. This guy needs to read up on Austrian economic theroy. I am a firm believer in Austrian economics.
Not going to allow it????
How else would you stop hyperinflation?
Not only will they allow it... it is THE method to control run-a-way inflation.
Speaking of ownership of U.S. ownership of 2 banks.
A stunning topic is slowly gathering steam in the United States and it's very discussion is bound to send shockwaves through the financial community in the coming weeks.
The Financial Post wrote about it yesterday under the following headline (click headline to link to story): Investors beware: U.S. banks may be nationalized.
A short summary of the article:
As losses mount for U.S. banks, concerns that the banking sector could prove to be insolvent are raising alarm bells. Investors are being warned that they should not rule out full nationalization of banks, a move that would result in complete loss of equity capital for those with a stake in any U.S. bank.
Back in October, the IMF estimated, in its Global Financial Stability Report, that bank losses on a global basis were roughly $750-billion out of a total pool of US$12.37-trillion in outstanding unsecuritized loans. As a rough estimate, U.S. banks account for half of those losses.
Since October, as economies worsen, loan losses have increased dramatically. Economist Nouriel Roubini predicts U.S. banks to ultimately suffer losses of US $1.1-trillion on outstanding pools of loans.
In response, President Obama's economics team will likely unveil its plan for creating an "aggregator bank" for purchasing "illiquid assets" from banks.
Recall that markets for many of these securities are illiquid and price discovery is difficult. Eventually this bank would sell off these assets as liquidity improved and prices hopefully rebounded.
This model would work even better under a scenario of bank nationalization as was the case in Sweden in the 1990s.
Various financial blogs and websites are begining to raise the alarm over this possible development.
It's quite possible that jittery investors might start dumping bank stock en mass next week when the markets open.
Who knows... maybe this is the trigger for a modern day run on the banks.
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On the topic of U.S. Banks, last year 29 failed. The reporting of this is always done on a Friday afternoon. Friday's are now jokingly referred to as 'Bank Failure Friday's' on some blogs.
Last Friday was, once again, Bank Failure Friday as failure #3 for 2009 occurred when 1st Centennial Bank of Redlands, CA went under.
my comments on Austrian economics was mainly directed at the order in which it predicts the future. Austrian economics is dead on perfect with thair predictions on Japan and i think (hope its wrong) they will be right with the US. If so, you will see a sideways movment of the economy at best, just like Japan.
The one thing i dont understand is why somthing was not done about it before this point.
There had to be some people in the federal reserve that knew this was going to happen. I think they wanted it to happen for some reason. I still dont know why they wanted it to happen. Maybe they over-shot there goal because this is too big for anyone to want it to happen. The fed fat cats have lost money too, dont kidd yourself.
alinburnaby
Im not saying i disagree with your negative outlook on the economy but i have a couple points.
Gold has clearly not ran away with the money like it should if what you are saying is that bad.
The amount of houses that were bought and sold or remorgaged AFTER the year 2000 are the only ones effecting the books. We need a chart showing the total amount of houses vs the amount dealt post 2000.
Oil was a speculation driven boom that had nothing to do with the amount of oil available. Oil will be available for the next 100 years atleast.
Lots of big companies have been halved in the stock market yet have no intentions of cutting dividends.
Im not saying i disagree with your negative outlook on the economy but i have a couple points.
Gold has clearly not ran away with the money like it should if what you are saying is that bad.
The amount of houses that were bought and sold or remorgaged AFTER the year 2000 are the only ones effecting the books. We need a chart showing the total amount of houses vs the amount dealt post 2000.
Oil was a speculation driven boom that had nothing to do with the amount of oil available. Oil will be available for the next 100 years atleast.
Lots of big companies have been halved in the stock market yet have no intentions of cutting dividends.
Gold has a very large paper market which can be manipulated very heavily. The price you pay to get physical gold right now is quite a bit higher then the spot price on the Comex
Dont know about Canada but at least 20% of mortgages in the US are now under water
For the simple reason it would kill their stock price, most are hoping some sort of government bailout will work
20% of mortgages could be under water but if the houses sold after 2000 only account for 10% of the total amount of houses in the US then the problem is overblown. I dont know the %, it could be worse then i think.
Who the hell knows, its just wierd that so many comparisons are made to the great depression but during the great depression there were normal people starving in the streets. That was bad.
Reddog seems to think socialism is the answer. I dunno about that
20% of mortgages could be under water but if the houses sold after 2000 only account for 10% of the total amount of houses in the US then the problem is overblown. I dont know the %, it could be worse then i think.
Who the hell knows, its just wierd that so many comparisons are made to the great depression but during the great depression there were normal people starving in the streets. That was bad.
Reddog seems to think socialism is the answer. I dunno about that
Are things as bad the the Great Depression, no, but think about why people are not starving in the streets.
We have social welfare programs, that provide a minumum level of income. Those programs also help prevent spending from dropping off a cliff, creating a further downward spiral
the US plan
The USA never seems to be in short supply of suckers to hold thair debt and untill that changes then this will not turn out as bad as everyone thinks.
The US is doing the same thing it did in the veitnam war era. Moneterise the dept(fuck my spelling). They will sell all the t-bills they need and then devalue the currency. So the debt holder will get paid but at the end of the day thair value will drop considerably. During the veitnam war only 10% of the dept was held outside the country, now its like 40%!
The USA never seems to be in short supply of suckers to hold thair debt and untill that changes then this will not turn out as bad as everyone thinks.
The US is doing the same thing it did in the veitnam war era. Moneterise the dept(fuck my spelling). They will sell all the t-bills they need and then devalue the currency. So the debt holder will get paid but at the end of the day thair value will drop considerably. During the veitnam war only 10% of the dept was held outside the country, now its like 40%!
What would happen if everyone on the planet forgave all debts owed to them immediately? How would that affect the world economy?
The monetary system seems to me more like a control system where the rich controls the poor and makes sure they stay there and work hard, so that the rich can extract more from the poor. An unbreakable cycle is thus established.
What are the best ways to make sure the artificial paper currency that we have remain valuable or useful in a time of economic, political, and worldwide planetary uncertainty? Operate a farm and ranch to become self-sustaining food-wise, build an armory, renewable energy, ...?
The monetary system seems to me more like a control system where the rich controls the poor and makes sure they stay there and work hard, so that the rich can extract more from the poor. An unbreakable cycle is thus established.
What are the best ways to make sure the artificial paper currency that we have remain valuable or useful in a time of economic, political, and worldwide planetary uncertainty? Operate a farm and ranch to become self-sustaining food-wise, build an armory, renewable energy, ...?
I am an optimist.
Understanding the current situation in a realist fashion allows you to make fortuitous moves.
Don't allow hope to cloud observation.
Most rich people have had or have huge debt loads. Lots of profitable companies are under huge debt.
What do you define as a " rich person " ??
a rich person that doesnt work according to you.
I don't quite understand this, but what is the second part of the answer? If someone owes me money, and I say forget about it, and banks tell their customers they no longer have to pay morgage payments. All past due credit card and bill payments are forgiven. What happens then? Will money somehow disappear?
I guess I meant those rich enough that they don't have to work at all. I would not call people or companies having large cash flows but with enormous debts 'rich', as all that wealth could disappear overnight. I think I might have just answered my question--those with a lot of power to manipulate the market, the politics, and the state are truly rich.Most rich people have had or have huge debt loads. Lots of profitable companies are under huge debt.
What do you define as a " rich person " ??
a rich person that doesnt work according to you.
Under the fractional banking system yes. You have to remember that the banks generally loan out (in Canada) 10 dollars for every 1 dollar they in deposits/reserves. This means that for the economy, the 10 dollars that you deposited into the RBC will eventually become 100 dollars when lent out, increasing the money supply by $90. Now if the people who borrowed the $100 dollars pay it back, the money supply shrinks by 90$. So yes the majority of money in todays fiat currency system is actually debt, and goes away as debt it paid back
Sooner or later..massacres will become logical. People in the name of sustainability will start killing the less intelligents. I can see that coming from a mile away. Great read this thread.Actually wess I don't think socialism is the answer. And we know now that capitalism isn't either.
Seriously, I think we need to forget about what we've had and get with the reality that the only thing that could possibly work would be a system that emphasized downscaling everything so that we could live sustainably.
Wealth comes only from what the planet provides: energy, food, water etc. People manipulate these things and we think they've created wealth. Wealth is like the law of the conservation of energy: energy in a system may change forms but it can neither be created nor destroyed, i.e. it remains constant.
We may be past the tipping point already. I hope we're not, but think we really are. Some scientists have estimated the sustainable carrying capacity of the planet at 2 billion people. But we're already at 6 billion and headed for 8-9 billion in the next decade or so.
So what happens to a population whether it's Easter Islanders or fruit flies, when it far outstrips its resources? It crashes--hard! Think we'll be different? Why?
This is all part of the plan by the illuminati to take over complete control of the world. In fact, they are looking into creating viruses to kill billions and cut the world population down to 1 billion.
Everyone on this board is a puppet in life at best!
you could not be more wrong. The desire to be weathy is what is running the world right now and killing a billion people is not a good business practice.
Were do you get this nonsense?
