AMERICAblog: Wachovia: 'We are in the early stages of the credit cycle'
dasein211
· 1 year ago
50 Trillion in Credit default swaps and CDO's . We are headed straight for a Depression. Everyone needs to be on the lookout for the dollar collapsing right before our very eyes. If this were to happen in a short time your paycheck will be useless. I advise everyone to spread the word to start buying silver and gold hard money as well as possibly trading in physical dollars for safer currencies. If that day does come it will be shortly before the Fed is done cutting interest rates. If the Fed runs out of bullets before the writedowns are done it's anybody's guess what will happen. I'm seeing a hyperinflationary depression with the effect of possible oil and gas shortages due to peak oil. PLEASE GET YOUR BUTS ON THE MOVE AND START PAYING ATTENTION TO THE FINANCIAL BLOGS> some of them may be rightwing nut jobs but they really care about their money and they are scared shitless. What will you but your bread with if the dollar collapses in a week or a day and nobody wants them anymore!!! All i'm saying is play it safe. Please read MIsh's economic trends and analysis as well as dollarcollapse.com, and GATA.org for some helpful analysis. GO OBAMA!!!!!!!
OlderAndWiser
· 1 year ago
The house of cards is actually what's falling...and with inflationary pressures driving up commodities such as energy, grain, etc., we're in for a terrible time in the very near future. I expect recent homeowners aren't the only ones who are going to be affected. Layoffs, debt and other factors, such as not being able to make day to day expenses, are going to cause even more foreclosures.
And without a steady middle class of consumers, who make up the bulk of the buying public, not the rich, with the shift of wealth that has occurred over the past 25 years, it's going to be far worse than the 30s.
No, we haven't even begun to see the end of this abomination.
JustAnOldLady
· 1 year ago
John McCain says the problem with the economy is "psychological" and thus not real......... George Bush today said "the economy is NOT in a recession, just a slowdown"......... there, now don't you feel better?
Rob Mule
· 1 year ago
CNN was showing a new 'green' house on a 'green' development in Connecticut this morning...The house was 800,000 sq feet and cost $3 mil...looked like a Cape Cod on steroids.
Rab
· 1 year ago
The average Americans credit card debt tells the whole story. You can't keep using plastic without penalty and sooner or later you go bust. I laugh when I hear McCrazy talk about how taxpayers stay within their own budget or cut back, really? Alot of Americans run their personal finances the way the repugs do, pile up the debt and hope for the best, tomorrow is another day. Well, that day has arrived.
OlderAndWiser
· 1 year ago
We really, really need to get alternative energy sources going. Let those industries replace the traditional ones...I don't care how much those companies lose because their greed is unmitigated.
John McCrazy has no problem with money--he gets 100% disability of $58K+ from the Navy, SS of $25K, his Senate salary, and upkeep from his multi-millionaire wife, not to mention the best of care from the taxpayers What the fuck does he know about really making a living and meeting day to day expenses? He has gotten something for nothing all his life.
He personifies the word "elite."
OlderAndWiser
· 1 year ago
With all the building going on, there is no reason why houses shouldn't be built with solar panels; such housing could be entirely energy self-contained. Screw hooking up to the power companies and giving them your leftovers.
Instead, the bldg industry continues to build the old way, which is not in the interest of conservation, and houses are getting bigger, using more resources, and overusing energy. Americans have been trained to accept this overconsumption of natural resources.
It's going to be our downfall, in the end.
OneManComotion
· 1 year ago
Is someone out there that can put into perspective just how much these home mortgages really add up to? I mean banks make many other loans. In reading all the bad news these days you would think that the only loans that banks have made are now defaulting from these sub-prime instruments. There has to be a bottom somewhere.
Andrew
· 1 year ago
OneMancomotion.......Many of the foreign banks that purchased sub-prime and Alt-A paper in the form of mortgages then hypotheicated that paper against other debt instruments. That is why I always refer to this operation as a ponzi scam. When you add in the derivitives that have been built upon all of this over inflated debt, the figure eclipses $500+ Trillion. Yes, Trillion with a T.
Andrew
· 1 year ago
Five Banks have taken on the leverage normally reserved for hedge funds, placing the US dollar and the entire financial system at risk, and essentially holding it hostage to carry their losses while they take their profits. They are JP Morgan Chase, Bank of America, Citibank, Wachovia, and HSBC. This is why their counterparty Bear Stearns had to be bailed out with public money. There are a few others to keep a close eye on including Merrill with large Credit Derivatives exposure although not in the top five. This is why its not over yet. There are two classes of financial institutions in trouble. Those that are 'too big to fail' and those that are 'too big to mention the word failure in the same sentence.' The top five derivatives speculators are in the latter category. If the Federal Reserve had taken over supervision from the OCC as Secretary Paulson recommended, do you think we would be seeing such detailed reports on the concentration of risk in five finacial market players? Or would they be skulking to the Discount Window to try and hold their books together with public money without any disclosure? No, this isn't over by a long shot and in the only ending that can take place with both bankers and politicians kicking and screaming, is to end this ponzi scam with the unwinding of the Federal Reserve banking system, replacing it with a sound money system. This process has already started, but the American people haven't discovered it yet. It's called the Basil II banking system and it's going to be coming to a new constitutional treasury bank near you soon. That you can take to the bank.
OlderAndWiser
· 1 year ago
OneMan, the losses do go much further than housing. Read up on mortgage securities and how those are sliced and diced and sold off. Chances are the "mortgage co" you pay your payment to is just a servicing outfit. Your mortgage was sold off long ago to investors in Europe, the ME, or wherever.
To add insult to injury, banks and credit card companies have been raising the interest rate on many cards, with no notification, on millions of customers (who even make payments on time). And there's the commercial loan market as well. Brand new bldgs, strip malls, etc., going into foreclosure as well.
All banks have investment depts--it's not just the Lehman Bros, etc. which are outright investment houses. And banks, though normally conservative with their investments, caved into the mortgage security fraud.
All because of greed, which they refer to as "growth."
Andrew
· 1 year ago
This is a brief and excellent video presentation that highlights just how catastrophic the Alt-A problem will become in relation to the sub-prime problem. Based on data this guy gets from the Fed's website, the main reason Alt-A mortgages go into foreclosure is because borrowers walk away when the value of the home goes below the amount of the mortgage:
"I need a popsicle to cool off from this hot economy"-Larry Kudlow
Andrew
· 1 year ago
Just a thought Chris....... While we are all aware of the coming financial tsunami that is going to hit both consumers and investors, a little common sense planning can help in a big way to offset what's coming. INFLATION IS HIGH AND RISING IN EVERY GEOGRAPHIC REGION OF THE GLOBE I've been talking about the coming inflation for two years now. Individual countries started to notice it about eighteen months ago, and a few months ago inflation finally came to the public's notice on a worldwide scale. However, the seeds of the current price increases were sown at least two or three years ago. What is more important is that the growing season for prices is nowhere near complete. A few salient points for those who want to protect themselves from the current and oncoming inflation.
1. Inflation takes a long time to incubate. Its soil is the fertile ground of irresponsible monetary policies that take the form of governmental money creation. 2. Countries then institute price controls and government imposed export curbs. 3. Shortages develop in world markets for commodities. 4. Inflationary psychology lags inflation by a long time, but once inflationary psychology begins to grip the populace there is a scramble to acquire and hoard goods instead of money, bonds or bank accounts. 5. Citizens of inflation ridden-countries wish to hold something other than cash, bonds, bank accounts and income producing stocks. The psychology begins to be, "Every day that I hold cash it is losing value to the inflation rate." So countries and investors take the following actions: People buy stocks, hoard food, gold, oil, commodities and other resources and in normal times. If credit is available, they hoard real estate. Currently, real estate can be hoarded in the developing world but in the developed world there is a credit liquidation going on due to an increasing illiquidity in the credit markets...simply put, real estate cannot be easily financed so hoarders go to other assets. 6. Countries begin to raise taxes on extractive industries or even force them to sell their companies to the government at low prices. Then the government operates them inefficiently with political goals in mind. A politically operated company is usually grossly inefficient, production falls and prices rise even faster. 7. Investors begin to call their money managers, stock brokers [financial consultants] mutual funds managers and ask "how can I stay ahead of inflation?" 8. Before this stage hits (it is about 6 months away in our view), you are wise to be invested in the industries and companies which benefit from inflation.
WHO BENEFITS FROM INFLATION? ENERGY, GOLD, FOOD, BASE METALS AND THE FAST GROWING COUNTRIES, SUCH AS CHINA ALL BENEFIT. don't think for a minute as the talking heads will tell you, that China will stop growing after the Olympics. They and India will continue to industrialize for at least the next ten to fifteen years.
Reason0Politics1
· 1 year ago
ARE YOU BETTER OFF THAN YOU WERE 8 YEARS AGO?
When George W. Bush took office in 2000, oil was $28 per barrel, the euro was $.87 on the dollar, gold was $274 per ounce, and the national debt was $5.9 trillion. Today, oil is a record $114 per barrel, the euro is nudging $1.60 on the dollar, gold is $945 per ounce, and the National Debt is $9 trillion. The country is presently engaged in a $2 trillion war in Iraq with no end in sight. The federal government has expanded over 30% under Bush. Wages for working people have stagnated, unemployment has risen, 47 million Americans are without health care, and the economy is slipping into recession. By every objective standard, the country is worse off today than when Bush first took office.
Wisconsin Liberal
· 1 year ago
We need to tax the hell out of the rich. Now if you think that this is "redistribution of wealth" well, wouldn't that just be what we went through, a redistribution of wealth from the average person up to the rich. It's time we get it back. They didn't do the economy so well.
High Crimes & Misdemeanors
· 1 year ago
I'm quite sure this was a missprint: 'We are in the early stages of the credit cycle'
It should have read: 'We are in the early stages of the credit cyclone'
All Comments
And without a steady middle class of consumers, who make up the bulk of the buying public, not the rich, with the shift of wealth that has occurred over the past 25 years, it's going to be far worse than the 30s.
No, we haven't even begun to see the end of this abomination.
John McCrazy has no problem with money--he gets 100% disability of $58K+ from the Navy, SS of $25K, his Senate salary, and upkeep from his multi-millionaire wife, not to mention the best of care from the taxpayers What the fuck does he know about really making a living and meeting day to day expenses? He has gotten something for nothing all his life.
He personifies the word "elite."
Instead, the bldg industry continues to build the old way, which is not in the interest of conservation, and houses are getting bigger, using more resources, and overusing energy. Americans have been trained to accept this overconsumption of natural resources.
It's going to be our downfall, in the end.
They are JP Morgan Chase, Bank of America, Citibank, Wachovia, and HSBC.
This is why their counterparty Bear Stearns had to be bailed out with public money. There are a few others to keep a close eye on including Merrill with large Credit Derivatives exposure although not in the top five.
This is why its not over yet.
There are two classes of financial institutions in trouble. Those that are 'too big to fail' and those that are 'too big to mention the word failure in the same sentence.' The top five derivatives speculators are in the latter category.
If the Federal Reserve had taken over supervision from the OCC as Secretary Paulson recommended, do you think we would be seeing such detailed reports on the concentration of risk in five finacial market players? Or would they be skulking to the Discount Window to try and hold their books together with public money without any disclosure?
No, this isn't over by a long shot and in the only ending that can take place with both bankers and politicians kicking and screaming, is to end this ponzi scam with the unwinding of the Federal Reserve banking system, replacing it with a sound money system. This process has already started, but the American people haven't discovered it yet. It's called the Basil II banking system and it's going to be coming to a new constitutional treasury bank near you soon. That you can take to the bank.
To add insult to injury, banks and credit card companies have been raising the interest rate on many cards, with no notification, on millions of customers (who even make payments on time). And there's the commercial loan market as well. Brand new bldgs, strip malls, etc., going into foreclosure as well.
All banks have investment depts--it's not just the Lehman Bros, etc. which are outright investment houses. And banks, though normally conservative with their investments, caved into the mortgage security fraud.
All because of greed, which they refer to as "growth."
http://www.youtube.com/watch?v=pmeBSWI9sF8
INFLATION IS HIGH AND RISING IN EVERY GEOGRAPHIC REGION OF THE GLOBE
I've been talking about the coming inflation for two years now. Individual countries started to notice it about eighteen months ago, and a few months ago inflation finally came to the public's notice on a worldwide scale. However, the seeds of the current price increases were sown at least two or three years ago. What is more important is that the growing season for prices is nowhere near complete.
A few salient points for those who want to protect themselves from the current and oncoming inflation.
1. Inflation takes a long time to incubate. Its soil is the fertile ground of irresponsible monetary policies that take the form of governmental money creation.
2. Countries then institute price controls and government imposed export curbs.
3. Shortages develop in world markets for commodities.
4. Inflationary psychology lags inflation by a long time, but once inflationary psychology begins to grip the populace there is a scramble to acquire and hoard goods instead of money, bonds or bank accounts.
5. Citizens of inflation ridden-countries wish to hold something other than cash, bonds, bank accounts and income producing stocks. The psychology begins to be, "Every day that I hold cash it is losing value to the inflation rate." So countries and investors take the following actions: People buy stocks, hoard food, gold, oil, commodities and other resources and in normal times. If credit is available, they hoard real estate. Currently, real estate can be hoarded in the developing world but in the developed world there is a credit liquidation going on due to an increasing illiquidity in the credit markets...simply put, real estate cannot be easily financed so hoarders go to other assets.
6. Countries begin to raise taxes on extractive industries or even force them to sell their companies to the government at low prices. Then the government operates them inefficiently with political goals in mind. A politically operated company is usually grossly inefficient, production falls and prices rise even faster.
7. Investors begin to call their money managers, stock brokers [financial consultants] mutual funds managers and ask "how can I stay ahead of inflation?"
8. Before this stage hits (it is about 6 months away in our view), you are wise to be invested in the industries and companies which benefit from inflation.
WHO BENEFITS FROM INFLATION? ENERGY, GOLD, FOOD, BASE METALS AND THE FAST GROWING COUNTRIES, SUCH AS CHINA ALL BENEFIT. don't think for a minute as the talking heads will tell you, that China will stop growing after the Olympics. They and India will continue to industrialize for at least the next ten to fifteen years.
When George W. Bush took office in 2000, oil was $28 per barrel, the euro was $.87 on the dollar, gold was $274 per ounce, and the national debt was $5.9 trillion. Today, oil is a record $114 per barrel, the euro is nudging $1.60 on the dollar, gold is $945 per ounce, and the National Debt is $9 trillion. The country is presently engaged in a $2 trillion war in Iraq with no end in sight. The federal government has expanded over 30% under Bush. Wages for working people have stagnated, unemployment has risen, 47 million Americans are without health care, and the economy is slipping into recession. By every objective standard, the country is worse off today than when Bush first took office.
It should have read: 'We are in the early stages of the credit cyclone'