Author Topic: WE'RE STUFFED!!!  (Read 31113 times)

erik

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Re: WE'RE STUFFED!!!
« Reply #585 on: September 18, 2008, 10:43:51 PM »
Russian stock exchange will remain closed until Friday and Russians are putting in 500 billion (US $20 billion) of their currency to keep their papers afloat. All these billions remain, however, a candy money (as my friend says) aimed at public perceptions as the total weight of the system is measurable in trillions...

I like the action! Whoa, how it all is shaking and rattling! Storm's rising!
« Last Edit: September 18, 2008, 10:48:58 PM by 829th »

Jahn

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Re: WE'RE STUFFED!!!
« Reply #586 on: September 18, 2008, 10:59:06 PM »
Russian stock exchange will remain closed until Friday and Russians are putting in 500 billion (US $20 billion) of their currency to keep their papers afloat. All these billions remain, however, a candy money (as my friend says) aimed at public perceptions as the total weight of the system is measurable in trillions...

I like the action! Whoa, how it all is shaking and rattling! Storm's rising!

I can't share your excitement fully - I hope this stays to be a lesson and not the final hit. But as I've said - it is a beuty even in pain and sorrow.

erik

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Re: WE'RE STUFFED!!!
« Reply #587 on: September 18, 2008, 11:03:42 PM »
I can't share your excitement fully - I hope this stays to be a lesson and not the final hit. But as I've said - it is a beuty even in pain and sorrow.

I have lived for so long with absolutely clear knowledge that the whole thing will come crashing down in my lifetime. Might be that I (we) have the front row tickets to this greatest drama of all. :)

Jahn

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Re: WE'RE STUFFED!!!
« Reply #588 on: September 19, 2008, 04:51:59 AM »
I have lived for so long with absolutely clear knowledge that the whole thing will come crashing down in my lifetime. Might be that I (we) have the front row tickets to this greatest drama of all. :)

I am happy to at last got the front row ticket to my own life. What happens at Wall Street - it can be interesting -and who doesn't enjoy a good drama? But when criminals and fools ruin your fortune it is not that funny. Let us keep us updated shall we.

erik

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Re: WE'RE STUFFED!!!
« Reply #589 on: September 19, 2008, 04:55:57 AM »
I am happy to at last got the front row ticket to my own life. What happens at Wall Street - it can be interesting -and who doesn't enjoy a good drama? But when criminals and fools ruin your fortune it is not that funny. Let us keep us updated shall we.

Absolutely, that's why we came into this life, didn't we? To see and play out the drama! :)

Offline Michael

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Re: WE'RE STUFFED!!!
« Reply #590 on: September 19, 2008, 06:45:20 AM »
Socialism is being called in to save Capitalism.

When will the poor realise they are underwriting the wealthy?

Jahn

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Re: WE'RE STUFFED!!!
« Reply #591 on: September 20, 2008, 03:40:55 AM »
I shall tell a little story.

My unit was about to move in 1992 to a new built house next to the University hospital area. The company that had built the house was unable to finish it because they got no more loans.

Then the big finacial crash hit the Swedish economy and much of the problem was over estimated real estate. We moved in to that new building (3rd floor of three) and new owners made it ready (it was second floor that was not ready). On first floor a new government own company moved in, their name was "Securum", the name stem from the latin word of security and to save. This company (i e government) had taken the majority of "bad loans" on real estate from the banks, of which this house was one object. This is exactly what is going on in the US right now. The Federal state plan to take over the bad part in house mortgage and then they will get so much out of it as they can in long term. I am sure that they will create similar "Securum" institutions.

The guys at Securum in our house worked for about 4 years until they had get rid of all objects in the South East of Sweden, including our house  ;D .  It was really serious guys, people that we never got to know, I can't rememebr a single face actually. And one day they were simply gone and Securum as such vanished.

In Sweden today it is in some cases still possible to borrow 100% of a house that you have bought, however the bank will know what size your shoes have before they give you the top loans. The rule of thumb is that you should be able to handle a loan that has a 3 percent higher interest rate than what is the present rate.

jmr
« Last Edit: September 20, 2008, 03:50:29 AM by Jamir »

tangerine dream

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Re: WE'RE STUFFED!!!
« Reply #592 on: September 20, 2008, 10:18:44 AM »
Aya!

Offline Angela

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Re: WE'RE STUFFED!!!
« Reply #593 on: September 21, 2008, 01:39:51 PM »
Kris posted this on RS as well ... it doesn't look good ....

Here's a link to an article of how we may have managed to get where we are:

http://www.globalresearch.ca/index.php?context=va&aid=10279

Listed below here are some comments from another discussion group on where we may be heading:

I have some bad news about the economy. The rescue plan that the Bush Administration is planning and that Congress is deliberating this weekend is not going to work. When the plan was announced, the market picked up and we had what can be called "irrational exuberance" by investors. The stock market soared and the week ended less than 100 points lower than it began.

The plan asks for $700 billion of bad mortgage loans to be purchased by the US government and held until the housing market stabilizes and the government can sell those mortgages for, hopefully, a profit. Sounds good, right? These banks that are being dragged down by these bad debts can unload them on the US government and then proceed with a healthier balance sheet. Taxpayers will need to pay for the funds to buy these bad loans from the banks, but when the homes are resold in 10-15 years at a profit, then that profit will be returned to the US taxpayer. So far, sounds good.

Here's the problem: which banks are going to get to unload their bad loans? Is the US Treasury going to allow ALL banks to unload their bad mortgages, or just those banks that are in trouble (i.e., banks like Washington Mutual). Is there going to be a limit on how much bad debt each individual bank can unload on the American taxpayer? Citibank, for example, has hundreds of billions of dollars in potentially bad debt -- can Citibank unload all of its hundreds of billions of dollars or just 50 billion, or 100 billion? If the limits are set too high, then only a few banks will be allowed to participate before the program runs out of money and the Treasury has to go back to Congress to ask for more money. Set it too low and banks won't be able to clear enough of their bad debts to change their balance sheets.

But there are two problems that are even more serious:

1. About 60% of the mortgages made during 2005-2007 in California were so-called option loans. This means that the buyer put no money down and paid a very low teaser rate. The buyer had the option of paying (a) a monthly payment composed of both principal and interest or (b) a monthly payment of interest only. Those option mortgages are set to reset in the next couple of months. Many of those homes are going to go into foreclosure. What is going to happen to the housing market when these new foreclosures hit? We'll be back in the same situation we are in now. The rescue plan does NOTHING to take care of foreclosures or appraisals or the housing market.

2. Credit default swaps. I think I may have given an explanation of credit default swaps earlier, but it's a bet (called a "hedge") that a certain institution will or will not fail. It's a bet. AIG was heavily involved in credit default swaps. Fannie Mae and Freddie Mac were heavily involved in credit default swaps. Once the US took over Fannie Mae, Freddie Mac and AIG, owners of those credit default swaps were put on notice that they had approximately 30 days to redeem that paper. The takeover of Freddie Mac and Fannie Mae occurred on September 7. That makes October 7 the 30th day anniversary when those credit default swaps will be required to be auctioned off. THE AMOUNT OF MONEY THAT THESE INVESTMENT BANKS HAVE INVESTED IN CREDIT DEFAULT SWAPS IS 3X WHAT THEY HAVE INVESTED IN "TOXIC" MORTGAGES. THREE TIMES! It is estimated that there are $3 trillion in credit default swaps that are going to have to be redeemed.

This is why we are not out of the woods yet. The Bush Administration rescue plan will give us some time to try to figure out what to do, but it's pretty clear that if the Bush Administration is going to bail out toxic mortgages, then they are going to bail out credit default swaps (which have no real collateral). That means the bailout plans could end up costing American taxpayers as much as $5 trillion. $5 trillion! This bailout plan requires the US debt to be raised to $11 trillion. The credit default swaps could add 40% more to the national debt. We are bankrupting our economy. Taxes on everyone will have to be raised. And none of this takes into account the rising number of baby boomers who will be retiring and getting Social Security and Medicare in the next 5 years. We won't have money for health care plans, for infrastructure projects, and we may not even have enough money for our national defense. Whether our economy collapses this year or in 2010-2012, it will collapse because there isn't any money to pay for these bailouts without increasing taxes on businesses and individuals by at least 40%. In other words, look at your paycheck, identify the amount of money withheld for Federal income taxes and multiply that by 4 -- that is how much will be withheld from your paycheck in 2 years, whether McCain or Obama is in the White House.

By the way, from what I've read, the reason this mother of all bailouts was needed is because CHINA refused to inject any more money in the US treasury on Wednesday night.

pipa.com/

z

 
"If you stop seeing the world in terms of what you like and dislike, and saw things for what they truly are, in themselves, you would have a great deal more peace in your life..."

Offline TIOTIT

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Re: WE'RE STUFFED!!!
« Reply #594 on: September 22, 2008, 11:03:12 AM »
This article is from an Australian newspaper called "The Australian"


Sorry to ruin the fun, but an ice age cometh

Phil Chapman | April 23, 2008

THE scariest photo I have seen on the internet is www.spaceweather.com, where you will find a real-time image of the sun from the Solar and Heliospheric Observatory, located in deep space at the equilibrium point between solar and terrestrial gravity.

What is scary about the picture is that there is only one tiny sunspot.

Disconcerting as it may be to true believers in global warming, the average temperature on Earth has remained steady or slowly declined during the past decade, despite the continued increase in the atmospheric concentration of carbon dioxide, and now the global temperature is falling precipitously.

All four agencies that track Earth's temperature (the Hadley Climate Research Unit in Britain, the NASA Goddard Institute for Space Studies in New York, the Christy group at the University of Alabama, and Remote Sensing Systems Inc in California) report that it cooled by about 0.7C in 2007. This is the fastest temperature change in the instrumental record and it puts us back where we were in 1930. If the temperature does not soon recover, we will have to conclude that global warming is over.

There is also plenty of anecdotal evidence that 2007 was exceptionally cold. It snowed in Baghdad for the first time in centuries, the winter in China was simply terrible and the extent of Antarctic sea ice in the austral winter was the greatest on record since James Cook discovered the place in 1770.

It is generally not possible to draw conclusions about climatic trends from events in a single year, so I would normally dismiss this cold snap as transient, pending what happens in the next few years.

This is where SOHO comes in. The sunspot number follows a cycle of somewhat variable length, averaging 11 years. The most recent minimum was in March last year. The new cycle, No.24, was supposed to start soon after that, with a gradual build-up in sunspot numbers.

It didn't happen. The first sunspot appeared in January this year and lasted only two days. A tiny spot appeared last Monday but vanished within 24 hours. Another little spot appeared this Monday. Pray that there will be many more, and soon.

The reason this matters is that there is a close correlation between variations in the sunspot cycle and Earth's climate. The previous time a cycle was delayed like this was in the Dalton Minimum, an especially cold period that lasted several decades from 1790.

Northern winters became ferocious: in particular, the rout of Napoleon's Grand Army during the retreat from Moscow in 1812 was at least partly due to the lack of sunspots.

That the rapid temperature decline in 2007 coincided with the failure of cycle No.24 to begin on schedule is not proof of a causal connection but it is cause for concern.

It is time to put aside the global warming dogma, at least to begin contingency planning about what to do if we are moving into another little ice age, similar to the one that lasted from 1100 to 1850.

There is no doubt that the next little ice age would be much worse than the previous one and much more harmful than anything warming may do. There are many more people now and we have become dependent on a few temperate agricultural areas, especially in the US and Canada. Global warming would increase agricultural output, but global cooling will decrease it.

Millions will starve if we do nothing to prepare for it (such as planning changes in agriculture to compensate), and millions more will die from cold-related diseases.

There is also another possibility, remote but much more serious. The Greenland and Antarctic ice cores and other evidence show that for the past several million years, severe glaciation has almost always afflicted our planet.

The bleak truth is that, under normal conditions, most of North America and Europe are buried under about 1.5km of ice. This bitterly frigid climate is interrupted occasionally by brief warm interglacials, typically lasting less than 10,000 years.

The interglacial we have enjoyed throughout recorded human history, called the Holocene, began 11,000 years ago, so the ice is overdue. We also know that glaciation can occur quickly: the required decline in global temperature is about 12C and it can happen in 20 years.

The next descent into an ice age is inevitable but may not happen for another 1000 years. On the other hand, it must be noted that the cooling in 2007 was even faster than in typical glacial transitions. If it continued for 20 years, the temperature would be 14C cooler in 2027.

By then, most of the advanced nations would have ceased to exist, vanishing under the ice, and the rest of the world would be faced with a catastrophe beyond imagining.

Australia may escape total annihilation but would surely be overrun by millions of refugees. Once the glaciation starts, it will last 1000 centuries, an incomprehensible stretch of time.

If the ice age is coming, there is a small chance that we could prevent or at least delay the transition, if we are prepared to take action soon enough and on a large enough scale.

For example: We could gather all the bulldozers in the world and use them to dirty the snow in Canada and Siberia in the hope of reducing the reflectance so as to absorb more warmth from the sun.

We also may be able to release enormous floods of methane (a potent greenhouse gas) from the hydrates under the Arctic permafrost and on the continental shelves, perhaps using nuclear weapons to destabilise the deposits.

We cannot really know, but my guess is that the odds are at least 50-50 that we will see significant cooling rather than warming in coming decades.

The probability that we are witnessing the onset of a real ice age is much less, perhaps one in 500, but not totally negligible.

All those urging action to curb global warming need to take off the blinkers and give some thought to what we should do if we are facing global cooling instead.

It will be difficult for people to face the truth when their reputations, careers, government grants or hopes for social change depend on global warming, but the fate of civilisation may be at stake.

In the famous words of Oliver Cromwell, "I beseech you, in the bowels of Christ, think it possible you may be mistaken."

Phil Chapman is a geophysicist and astronautical engineer who lives in San Francisco. He was the first Australian to become a NASA astronaut.

Jahn

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Re: WE'RE STUFFED!!!
« Reply #595 on: September 24, 2008, 07:10:54 PM »

Last year it was in October, now Earth overshoot day is in September, today.

Jahn

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Re: WE'RE STUFFED!!!
« Reply #596 on: September 24, 2008, 07:16:27 PM »
There is a guy named David Rothkopf that now are promoting his new book Superclass, in which he claims there are about 6000 persons ruling the world more or less. He mention three Swedes while the majority are in the US. He believes that the ongoing financial crisis will change many of the former candidates.

"David Rothkopf is the widely acclaimed author of "Running the World: The Inside Story of the National Security Council and the Architects of American Power". He is the president and chief executive of Garten Rothkopf, an international advisory firm; a visiting scholar at the Carnegie Endowment for International Peace; and a teacher of international affairs at Columbia University’s Graduate School of International and Public Affairs."

http://us.macmillan.com/superclass


The activities of a growing cosmopolitan elite are having profound effects. They can be highly desirable when they promote international cooperation or more problematic when the interests of the elites diverge from those of their citizens. David Rothkopf’s Superclass skillfully probes these issues and many more and should be read by all those concerned with the international economy and the evolving global system.”  —Lawrence Summers, former U.S. Secretary of the Treasury."
« Last Edit: September 24, 2008, 07:19:13 PM by Jamir »

Offline TIOTIT

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Re: WE'RE STUFFED!!!
« Reply #597 on: September 25, 2008, 12:35:33 PM »
Things are really warming up now....


Heavy Snow Fall In South Africa Blamed On Global Warming
Phantom warming still cited as NASA sounds alarm bells on greatly reduced solar activity
      

Steve Watson
Infowars.net
Tuesday, Sept 23, 2008

Unexpected snowfall and freezing temperatures in the KwaZulu-Natal region of South Africa has been described by so called climate experts as a feature of global warming.

The country experienced its coldest night on record two nights ago — in the spring time.

The adverse weather has shocked and surprised many locals, with forecasters warning that worse conditions could follow.

The snow is part of a continuing pattern of cold snaps across the continent that has also seen unprecedented ice storms in Kenya, resulting in 4 inch deep hail covering the ground.

The cold snap arrives on the back of the Sun reaching a milestone not observed in nearly 100 years - the entire month of August passed without a single sunspot being noted.

NASA will today hold a media teleconference at 12:30 p.m. EDT, to discuss data from the joint NASA and European Space Agency Ulysses mission that reveals the sun’s solar wind is at a 50-year low. A statement already released by the space agency has stressed that "the sun’s current state could result in changing conditions in the solar system."

Lack of solar activity in 2008 has coincided with evidence of a cooling trend across the world.

Earlier this year, China experienced its coldest winter in 100 years while northeast America was hit by record snow levels, Sydney experienced its coldest August for 60 years and Britain suffered its coldest April in decades.

Rapid decrease in solar activity is an event that has always preceded so called mini-ice age periods throughout history, no wonder then that many scientists are predicting prolonged global cooling.

Not those at the South African department of environmental affairs, however.

In a South African Independent article titled "Warming has a hand in recent wild weather", Joanne Yawitch, the deputy director general in the department of environmental affairs and tourism, noted that "climate change", as in man made climate change, was playing a role in the adverse weather patterns: "What it raises for South Africa is the ability to develop a [resilience] to weather changes and how to deal with these," she said.

The comments echo those of World Wildlife Fund development and sustainability program manager Paul Toni, who recently told reporters in Australia that "The freezing temperatures are proof of the urgent need to cut carbon pollution."

That’s right - in case you weren’t aware of the new climate change catch-all explanation, man made CO2 emissions now cause global cooling as well as global warming.

Indeed, all weather events, be it snow, rainfall, storms, hurricanes, typhoons or earthquakes are also now caused by CO2 emissions. This is because none of the current weather trends fit in with the notion that has been pushed for the best part of a decade now that an overall heating of the Earth mandates the poor and middle classes be hit with multiple forms of lifestyle restriction and CO2 taxation in order to save the planet.

Jahn

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Re: WE'RE STUFFED!!!
« Reply #598 on: September 26, 2008, 05:01:37 AM »
Please become updated. Now bail out of the Big Banks is accepted but ...


Is $700 billion enough? Sept 25
Author Marc Faber on whether the Bush administration's $700 billion plan is enough to remedy the economic crisis.


"Faber was born in Zurich and schooled in Geneva, Switzerland. He studied Economics at the University of Zurich and, at the age of 24, obtained a Ph.D. in Economics magna cum laude[1]. Faber resides in Thailand and is best known for the Gloom Boom Doom newsletter and web site featuring "Dance of Death" paintings created by Kaspar Meglinger.

During the 1970s Faber worked for White Weld & Company Limited in New York City, Zürich, and Hong Kong. He moved to Hong Kong in 1973. He was a managing director at Drexel Burnham Lambert Ltd Hong Kong from the beginning of 1978 until the firm's collapse in 1990. In 1990, he set up his own business, Marc Faber Limited. Faber now resides in Thailand, though he keeps a small office in Hong Kong.

Faber has gained a reputation as a contrarian investor. He has become a frequent speaker on various TV programs and forums in recent years. He is very bearish on the long-term outlook for the U.S dollar because he believes that the excessive money supply by Fed is inflationary and detrimental to the currency's value. He is very bullish on the long-term outlook for commodities.
"

And Tai Pan lives in Hong Kong, I see much Tai Pan in Marc Faber.
Because in Hong Kong one know what is sound business and what business is bad. US has a lesson to learn there.

Interwiev with Marc Faber in Sept 2007
http://forum.globalhousepricecrash.com/index.php?showtopic=23048

http://philip9876.wordpress.com/2008/09/11/marc-fabers-comment-on-the-us-economy/
« Last Edit: September 26, 2008, 03:51:11 PM by Jamir »

erik

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Re: WE'RE STUFFED!!!
« Reply #599 on: September 26, 2008, 06:24:14 AM »
Russians put into their banks additional...$60 billion...

 

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