Market manipulations never fail to shock us, 13 trillion spent into a pit of debt and no relief in sight, unemployment numbers probably higher than they appear, crooks bailed out, taxpayer pays for it, bank lending way down, inflation predicted
On thing we can say for sure about 2009 is that markets witnessed the worst manipulation ever by the President’s “Working Group on Financial Markets.”
Over a 15-month period ending 9/30/09, together the Fed and Treasury borrowings were $2.81 trillion. This has been the greatest creation of financial aggregates in history. This tidal wave of money and credit was accompanied by just above zero interest rates. Then there was the Fed’s trillion-dollar purchase of toxic mortgage securities, which the Fed refuses to tell us what they paid for them and from whom they bought them. Total monetization has been well over $2.3 trillion that we know about. The freeing of toxic mortgages reliquefied balance sheets and markets and allowed mortgage finance to remain low for residential real estate for refinancing, most of which was guaranteed by US taxpayers, by the bankrupts known as Fannie, Freddie, Ginnie and FHA. We might add that our government started the subprime crisis all over again over this past year by handing out marginal mortgages to reduce residential inventory held by banks. Government admits they will probably have 25% foreclosures. We estimate them at more than 50%. When the truth is finally known guarantees are probably in the realm of $700 billion to a trillion dollars. Once government discontinues this very expensive support, prices will again fall and inventory will again rebuild.
LINK HERE
AP: Bankruptcies jump 32% to 1.4 million in 2009
LINK HERE
a massive bubble
ReplyDeleteTiger just cut a check to his wife for 300 million. Now would be a good time for hyperinflation to kick in.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteBTW Al Gore can suck it - he and his global warming, climate changin' cronies. I'm sitting under 5 inches of snow today. Record low temps all over the US.
ReplyDeleteYeah an' Big Al got ze Nobel peace prize too
ReplyDeleteWorth a cool Million bucks
what a great guy - just ta save dem bars up north
Foreclosures----A process of reclaiming a piece of real estate that the purchaser could not pay for. The mortgage contract was not met by the borrower, and the lender reclaimed the collateral which was the property.
ReplyDeleteWhen I see the word foreclosure, it always makes me think of two situations:
(a). Property (a home) being reclaimed from a borrower, who knew at the time of taking out the mortgage, was to be unaffordable by that borrower. Usually an extreme and expensive home as compared to the borrower's financial ability.
(b). Property (a home) being reclaimed from a borrower who lost his income due to the economic crisis brought on by "a" above. Usually an affordable home that should have been payable by the borrower's financial ability had he retained his job.
Many people who post on this blog realize, or are beginning to realize this situation is true.
Many Americans who are losing their homes know this well, be they "a" or "b" as above.
I could include a "c" situation as well, the greedy lenders who may or may not have fooled the borrower, "a", above into a loan they could not afford. I am all for the "c" situation, and I will list that, while keeping in mind that it takes a Borrower's Signature to effect the loan.
Why is it not reasonable to conclude that mortgages should be tied to true value. The bankruptcy laws changed that. A federal Judge can no longer modify mortgage terms. The "B" scenerio is generally the correct one.
ReplyDelete