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Recommendations: 0 Follow Up to my Previous Post on Fed and Government Policies Inflation, Deflation and Other Trends: Consumer inflation will accelerate for, now, as long as the fed stays with their current plan or until financial meltdown occurs. The Fed will attempt anything it deems necessary to avoid the Japanese deflation scenario. Inflation is increasing, in part, because the Fed is pursuinby CYBERBA - Economy and General Discussion
SUPPLEMENTAL READING ARTICLES ON THE DERIVATIVE MARKET http://www.prudentbear.com/index.php/CreditBubbleBulletinHom... Global Credit Market Dislocation Watch: April 15 – Bloomberg (Neil Unmack and Sarah Mulholland): “The credit-default swap market has become a lesson in being careful what you wish for now that Wall Street has taken $245 billion of losses partly tied to such exotica. Raby CYBERBA - Economy and General Discussion
RECAP OF PUBLISHED REPORTS: http://en.wikipedia.org/wiki/Bear_Stearns Bear Stearns From Wikipedia, the free encyclopedia On March 16, 2008, under the supervision of the Federal Reserve, the company signed a merger agreement with JP Morgan Chase under which JPMorgan Chase would assume the counterparty risk and exercise management control over Bear Stearns pending shareholder approval. The Federal Rby CYBERBA - Economy and General Discussion
Any military planner would tell you to expect the best but plan for the worst. The comments below consider the worst-case analysis for the world’s economies and populations as I see it. ### PART 1. The Fed's Immediate Plan of Action: Nuclear Containment. When the Soviet Union disintegrated, the West took actions to try and control the spread of the Soviet nukes. With the same thinking, The Fby CYBERBA - Economy and General Discussion
http://www.eurointelligence.com/article.581+M5bbdc9aafdf.0.html 03.02.2008 The Credit Crunch – In 2008 The Worst May Keep Getting Worse By: Satyajit Das 2007 may come to associated with the start of the "big" credit crunch. 2008 has begun with a number of "unresolved" items. Hope of an early resolution seems to be fading. In the words of Lily Tomlin, the American comedianby CYBERBA - Economy and General Discussion
See the YOUTUBE video below. How do you think these folks would view this discussion of the “R” word? ### http://www.whatreallyhappened.com/archives/cat_economy.html#... From the website above I found below video link: http://www.youtube.com/watch?v=jmeHiFZUWtE 2008 TENT CITY SHANTY TOWN, SOUTHERN CALIFORNIA Here are some videos of a tent city / shanty town that has popped up in the suby CYBERBA - Economy and General Discussion
Believe me, if credit card companies tighten up on folks that carry a balance, even folks with good credit scores could see their scores dropping in a downward spiral and eventually be forced into bankruptcy/foreclosure. Don’t carry any debts going into this downturn. CY ### http://www.smartmoney.com/consumer/index.cfm?story=20080104 The Coming Credit-Card Crunch Byby CYBERBA - Economy and General Discussion
Wednesday, January 2, 2008 1:03 AM http://www.huffingtonpost.com/sunil-chacko/sec-chairman-cox-highligh_b_79199.html SEC Chairman Cox Highlights Rise of Sovereign Funds Posted January 2, 2008 | 10:34 AM (EST) Chairman Cox claimed that neither international law nor the Foreign Sovereign Immunities Act renders these funds immune from the jurisdiction of U.S. courts in connection with their commerciaby CYBERBA - Economy and General Discussion
<<< Gov't Tries to Contain Mortgage Crisis >>> "It's all just bandaides to try smooth out the coming extreme dips for the financial communities... the majority of folks that are "fortunate enough" to refinance out of teaser rates will be making payments on a house that will be constantly dropping in value and these folks will end up losing more money over time thanby CYBERBA - Economy and General Discussion
Overly optimistic?: http://www.iht.com/articles/2007/08/26/business/26housing.php Home prices expected to drop in U.S. By David Leonhardt and Vikas Bajaj Published: August 25, 2007 The median price of American homes is expected to fall this year for the first time since federal housing agencies began keeping statistics in 1950. Economists say the decliby CYBERBA - Economy and General Discussion
Recommendations: 0 http://today.reuters.com/news/articleinvesting.aspx?type=fundsFundsNews&storyID=2007-08-14T175050Z_01_N14433225_RTRIDST_0_SENTINEL-CFTC-CNBC-UPDATE-3.XMLNEW YORK, Aug 14 (Reuters) - Sentinel Management Group Inc., which oversees about $1.6 billion in assets, will not receive help from a commodities regulator to stop clients from pulling out thby CYBERBA - Economy and General Discussion
http://www.forbes.com/markets/2007/08/14/walmart-retailer-update-markets-equity-cx_er_0814markets23.html?partner=aoltix Wal-Mart Sees Global Drop-Off Evelyn M. Rusli, 08.14.07, 2:30 PM Wal-Mart investors better buckle in, 2007 is going to be a rocky ride. On Tuesday, the retailer said second-quarter profits rose 49.0% but warned that earnings will be weaker than investby CYBERBA - Economy and General Discussion
Funding has dried up because investors have been earning too little for taking too much risk as the US sub-prime implosion showed. Trailer trash borrowers who could barely afford to pay rent were lent money to buy homes in the belief that rising house prices would ensure the loans were cleared. Instead, prices plunged and the loans were junked. About $300bn (£148bn) are estby CYBERBA - Economy and General Discussion
Barchart.com U.S. Morning Call for Tuesday, August 14, 2007 U.S. Preview The European Central Bank today injected extra reserves into the banking system for the fourth consecutive business day. However, the ECB only injected 7.7 billion euros ($10.5 billion) and said that euro interest rates are "close to normal." The Bank of Japan today returned to normal operations and drained $13.6by CYBERBA - Economy and General Discussion
Relevant section from previous poster: http://forum.themarkettraders.com/read-m/26/11093 Hardly a Bailout / Hussman newAugust 13, 2007 12:46AM [ by CYBERBA - Economy and General Discussion
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/12/AR2007081200768.html U.S. Homeowner Woes Felt Around World By MATT MOORE, AP Posted: 2007-08-12 16:41:55 FRANKFURT, Germany (AP) - The latest crisis in financial markets has once again served as a reminder of how vital and interconnected the health of the U.S. economy is to that of the rest of the world. From Newby CYBERBA - Economy and General Discussion
http://www.forbes.com/feeds/ap/2007/08/09/ap4005611.html QUOTE OF THE DAY: "This is a mini-panic," he said. "All the things that had been denied up until this point are unraveling. Associated PressDow Plunges 387 on Subprime Concerns By TIM PARADIS 08.09.07, 4:25 PM ET NEW YORK - Wall Street plunged again Thursday after a French bank saby CYBERBA - Economy and General Discussion
http://www.businessweek.com/bwdaily/dnflash/content/aug2007/db2007082_138347.htm?chan=top+news_top+news+index_best+of+bw Top News August 7, 2007, 12:01AM EST Angry Homeowners Take to the Web As homebuilders struggle and houses get harder to sell, builder-bashing gripe sites are grabbing more attention and more traffic by Maya Roney Sabin has been calby CYBERBA - Economy and General Discussion
http://money.cnn.com/2007/08/06/markets/privateequitybubble.fortune/index.htm?postversion=2007080709 Why the private equity bubble is bursting Loans will go bad, deals will be canceled, fortunes will be lost. The sudden end of cheap financing is wreaking havoc on the buyout market, says Fortune's Shawn Tully. By Shawn Tully, Fortune editor-at-large August 7 2007: 9:36 AMby CYBERBA - Economy and General Discussion
http://www.marketwatch.com/news/story/sp-may-downgrade-parts-45/story.aspx?guid=%7B8868B3A5-BC85-417E-8BA2-8EB1B34405DD%7D S&P may downgrade parts of 45 mortgage-backed securities By Alistair Barr Last Update: 5:49 PM ET Apr 25, 2007 SAN FRANCISCO (MarketWatch) -- Rating agency Standard & Poor's said on Wednesday that it may downgrade the lower-rated parts of 45 residential mortgage-backedby CYBERBA - Economy and General Discussion
http://www.counterpunch.org/whitney04242007.html April 24, 2007 "Is It Too Late to Get Out?" Housing Bubble Boondoggle By MIKE WHITNEY http://patrick.net/housing/contrib/future.html Future of US Housing ### http://www.realcities.com/mld/krwashington/17128560.htm Posted on Tue, Apr. 24, 2007 HOUSING Agencies failed to rein in subprime lending By Kevin G. Hall McClatchy Newspapers WASHINby CYBERBA - Economy and General Discussion
To paraphrase from the Holy Grail: Recession?...What recession? ...It's only a flesh wound!http://www.youtube.com/watch?v=2eMkth8FWno Start video at 1:30 when King Arthur greets the noble Black Knight. The Holy Grail: Scene 4 The black knight ### http://money.aol.com/news/articles/_a/existing-home-sales-plunge-in-march/20070424100909990001?ncid=NWS00010000000001 Updated:2007-04-24 11:01:04 Eby CYBERBA - Economy and General Discussion
http://www.latimes.com/business/la-fi-petruno18mar18,1,6657124.column?ctrack=1&cset=true Test for bonds tied to loans For TCW, a big seller of mortgage-backed paper, the question is how its investors will fare. March 18, 2007 by CYBERBA - Economy and General Discussion
www.billcara.com/CS%20Mar%2012%202007%20Mortgage%20and%20Housing.pdf - As shown in Exhibit 42, roughly $300 billion of securitized subprime mortgages (36% of outstanding subprime MBS) are set to reset in 2007 alone, with even more occurring in the non-securitized space. This, in our opinion, is the next shoe to fall and will likely contribute to additional delinquencies, foreclosures, invenby CYBERBA - Economy and General Discussion
http://www.latimes.com/business/la-ex-subprime18apr19,1,1782206.story?track=crosspromo&coll=la-headlines-business&ctrack=1&cset=true Change text size Freddie Mac may provide $20B to help loan market By Jonathan Peterson, Times Staff Writer 1:23 PM PDT, April 18, 2007 WASHINGTON -- Freddie Mac, a huge supplier of cash for mortgages, will provide up to $20 billion in financing to help stby CYBERBA - Economy and General Discussion
http://www.express.co.uk/posts/view/4722 BIG MORTGAGES RISES COMING Wednesday April 18,2007 By Macer Hall CRIPPLING rises in mortgage bills were forecast as “certain” last night after a shock leap in inflation. Economists tipped the base rate to rocket over the 6 per cent mark, leading to eye-watering hikes in repayments for millions of home owners by CYBERBA - Economy and General Discussion
Looks like constipation for home owners... http://www.csmonitor.com/2007/0402/p13s01-wmgn.html Work & Money from the April 2, 2007 edition US workers saddled by houses that won't sell Soft real estate markets hurt worker mobility as relocation gets more costly – financially and emotionally. By Marilyn Gardner | Staff writer Moving companies hurt, too Moving companies, too, are feeling rby CYBERBA - Economy and General Discussion
The Final Hour . No one knows in advance the date and time when it will happen, but you, for sure, will know it when you feel it. ### http://kordamentha.com/downloads/newsdocs/Media%20Release%20-%20Fincorp%20Update%20-%2030%20March%202007.pdf Fincorp Update 30 March 2007 KordaMentha today estimated that secured note holders in the Fincorp Group of Companies should receive a minimum 30 cents in thby CYBERBA - Economy and General Discussion
A quick look at the Senate's web site reveals, Colorado has 1 in 33 households in foreclosure, not 1 in 3 households in foreclosure. It appears that someone at Forbes was using some bad notes or drafts along the way. ### http://jec.senate.gov/Documents/Reports/subprime11apr2007revised.pdf 2007 - SHELTERING NEIGHBORHOODS FROM THE SUBPRIME FORCLOSURE STORM (REVISED) JOINT ECONOMIC COMMITTEE Senatorby CYBERBA - Economy and General Discussion
http://www.financialstandard.com.au/index.php?id=9792#Scene_1 PE boom poses risks: IMF Thursday, 12 Apr 2007 12:22PM Growth in private equity and leveraged buyouts (LBOs) pose risks to an otherwise positive global economic outlook, according to the International Monetary Fund’s half-yearly Global Financial Stability Report. According to the IMF, strong corporate performance and low interesby CYBERBA - Economy and General Discussion