fed cuts funds 50 points, discount window 50 points

[libertarianguy]

test

[bc2208]

insane

[Bradley in DC]

http://www.federalreserve.gov/newsevents/press/monetary/20070918a.htm

Press Release

Release Date: September 18, 2007
For immediate release


The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 4-3/4 percent.

Economic growth was moderate during the first half of the year, but the tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally. Today’s action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time.

Readings on core inflation have improved modestly this year. However, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully.

Developments in financial markets since the Committee’s last regular meeting have increased the uncertainty surrounding the economic outlook. The Committee will continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; William Poole; Eric Rosengren; and Kevin M. Warsh.

In a related action, the Board of Governors unanimously approved a 50-basis-point decrease in the discount rate to 5-1/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Cleveland, St. Louis, Minneapolis, Kansas City, and San Francisco.

[libertarianguy]

test

[ghemminger]

http://www.reuters.com/article/businessNews/idUSN1728325720070917

WASHINGTON (Reuters) - Former Federal Reserve Chairman Alan Greenspan said in an interview published on Monday the Fed would have to raise interest rates to double-digit levels in coming years to thwart inflation.

But double-digit rates, which have not been seen since the 1980s, would not be a long-term fixture, Greenspan said in an interview with USA Today conducted on Friday.

"Double digit is something that is likely to happen for a short period of time," he said, adding it was hard to predict when such a big rate increase would be needed.

The U.S. central bank meets on Tuesday and is widely expected to cut the benchmark federal funds rate by at least a quarter-percentage point to help the economy weather a housing downturn and credit crunch.

[ghemminger]

http://news.yahoo.com/s/nm/20070917/bs_nm/markets_oil_dc_10

NEW YORK (Reuters) - Oil soared to a record near $81 a barrel on Monday on worries that global energy supplies could shrink to critical levels this winter heating season due to strong demand growth.


Expectations that the U.S. Federal Reserve will agree to cut interest rates when it meets on Tuesday also supported oil and other commodities markets, raising the likelihood the economy will weather a U.S. credit crisis.

[Dustancostine]

Gold at $716

Canadian Dollar $0.98 (Were almost equal now)

Euro $1.38

[Bradley in DC]

http://www.marketwatch.com/news/story/dollar-drops-after-fed-cuts/story.aspx?guid=%7B94D2A4C1%2DA5BE%2D4B12%2D8D4C%2 D184BBD9F2BFF%7D&tool=1&dist=bigcharts&

Dollar drops after Fed cuts more than expected
By Lisa Twaronite
Last Update: 2:21 PM ET Sep 18, 2007

SAN FRANCISCO (MarketWatch) -- The dollar dropped Tuesday after the Federal Reserve cut its key fed funds rate by 50 basis points, instead of the 25-basis point cut expected by many investors. The euro rose to $1.3953, compared to $1.3885 before the Fed decision, and the trade-weighted dollar index fell to 79.375, compared to 79.645. The dollar was trading at 115.77 yen, compared to 115.80 yen

[ghemminger]

Holy SH@#$%

Can anyone say ARMEGEDDON????? AN INFLATIONARY Depression with a crash in Real Estate?????? Looks like we don't need another 9/11 to sink this PIG

[ghemminger]

Stupidity of Fed Pretty Surprising

Well, I guess the cure for hangovers is not just the tale of the dog but hindquarters too!

This dumb move today will not help in the long term or even the near term.

Now the dollar will get even weaker, inflation will continue to go up e.g. the price of food, gasoline, etc., and at best we put off the day of reckoning a little longer.

I guess I gave the Fed way too much credit for being beyond influence and competent.

[Dustancostine]

Should I raise my prices at my business by $1 per item?

[derdy]

Silver @ $12.90 on the spot market.

[libertarianguy]

test

[ghemminger]

http://money.cnn.com/2007/09/13/news/economy/recession_risks/index.htm?postversion=2007091311

Even if the central bank starts to cut rates aggressively, many of the risks for the U.S. economy are beyond its reach.
By Chris Isidore, CNNMoney.com senior writer
September 18 2007: 1:14 PM EDT


NEW YORK (CNNMoney.com) -- Problems in housing, the financial markets and the first job decline in four years have made a Federal Reserve rate cut Tuesday all but certain. But it has also raised talk about a recession - and whether the Fed is able to prevent one.

While most economists still don't believe the nation will fall into a recession, there is general agreement that the economy now faces a greater risk than there was only a month or two ago.


It's not clear how much Federal Reserve Chairman Ben Bernanke will be able to do if the U.S. economy does start to slide toward recession.

But many economists also say that the Fed can do little at this point to address many of the factors threatening continued economic growth. Some economists even argue that rate cuts could make matters worse.

[mdh]

Woah.
This is something... Thoughts?

[drew1503]

The Dollar is going to fall further........


Fed surprises with half-point rate cut
Bernanke-led panel cites housing problems in making aggressive move
BREAKING NEWS
MSNBC staff and news service reports
Updated: 11:58 a.m. PT Sept 18, 2007

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The Federal Reserve Tuesday surprised financial markets with an aggressive half-point cut in a key lending rate, lowering borrowing costs for businesses and consumers in response to a housing downturn that threatens to spread to the broader economy.
"Today’s action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time," the Fed said in a statement. The central bank cautioned that "the tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally."
While a rate cut had been widely expected, the aggressive half-point move surprised analysts and delighted investors, who had been uncertain in how Fed Chairman Ben Bernanke would respond to the first major economic crisis of his tenure. The stock market soared immediately after the announcement, with the Dow Jones industrial average jumping more than 200 points in the initial minutes.
It was the first time in more than four years that the central bank cut the main federal funds rate, which had been unchanged since a long series of rate hikes that ended in June 2006. The fed funds rate, which is what banks pay to borrow money overnight, now stands at 4.75 percent, down from 5.25.
Most economists predicted that Bernanke and his colleagues would choose to reduce the federal funds rate only by a quarter-point although a minority correctly predicted the bolder half-point move. But analysts agreed that the Fed's unanimous move Tuesday is unlikely to be the last word on the subject.
Many economists are predicting a string of three or more rate cuts as the central bank works to calm financial markets and keep the worst slump in housing in 16 years from pushing the country into a recession.
“We have a very soft economy, and if the Fed doesn’t lower rates then the economy could fall into a recession,” said Mark Zandi, chief economist at Moody's Economy.com.
Zandi has trimmed his forecast to show economic growth of about 2.5 percent in the current quarter, down sharply from 4 percent in the April-June quarter. He said the fourth quarter is likely to be even weaker at around 1.5 percent.
Analysts believe the Fed has room to cut rates because inflation pressures have been easing. In good news on that front, the Labor Department reported Tuesday that wholesale prices fell by 1.4 percent in August. It was the biggest drop in 10 months and much larger than the 0.3 percent fall that had been expected.
The slump in housing that began last year has sent delinquencies on subprime mortgages, loans make to people with weak credit histories, soaring to record levels. The rising delinquencies and foreclosures have caused a serious credit crunch as investors have grown worried about other types of loans, a development that has roiled global financial markets.
All this turmoil has forced a radical about-face at the Fed since its last meeting Aug. 7. At that time, the Fed left the funds rate unchanged and declared that its predominant concern was still that inflation would fail to moderate as expected.
But as conditions in financial markets grew more turbulent, the Fed began aggressively pumping extra cash into the banking system and on Aug. 17 announced a surprise half-point cut in its discount rate, the interest that it charges to make direct loans to banks. The Fed lowered the discount rate another half-point Tuesday.
Private forecasters say the Fed's worries are not misplaced, given that all but two of the housing downturns that have occurred since the end of World War II have been accompanied by recessions.
“You get as big a decline in housing as we are looking at and that is serious business,” said Lyle Gramley, a former Fed governor and now an analyst at Stanford Financial Group in Washington. “I think we will escape a recession, but just by the skin of our teeth.”
In one jarring note, employment fell in August by 4,000, the first outright decline in four years, with manufacturing and construction leading the job losses.
But economists said they believed that Bernanke, who wrote extensively as an economics professor on the Great Depression that followed the 1929 stock market crash, understands what needs to be done to avert downturns.
While some have complained that Bernanke has been more tentative than Greenspan would have been, no less an authority than his predecessor Alan Greenspan disagrees.

In a round of interviews to promote his new book, Greenspan, who was Fed chairman for 18½ years, said Bernanke was “doing an excellent job” and he doubted that he would have done anything differently.
Greenspan told The Associated Press that the odds of a recession have grown since earlier this year, even though “the economy is not doing badly at this stage.”
He put the odds of a recession at greater than one in three. “But best I can judge it is less than 50 percent,” he said.


Full text of Fed statement
The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 4-3/4 percent.
Economic growth was moderate during the first half of the year, but the tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally. Today’s action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time.
Readings on core inflation have improved modestly this year. However, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully.
Developments in financial markets since the Committee’s last regular meeting have increased the uncertainty surrounding the economic outlook. The Committee will continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; William Poole; Eric Rosengren; and Kevin M. Warsh.
In a related action, the Board of Governors unanimously approved a 50-basis-point decrease in the discount rate to 5-1/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Cleveland, St. Louis, Minneapolis, Kansas City, and San Francisco.

The Associated Press contributed to this report.
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');if(window.print){window.print()}else{alert('To print his page press Ctrl-P on your keyboard \nor choose print from your browser or device after clicking OK');}} URL: http://www.msnbc.msn.com/id/20837026/

[angelatc]

I can't wait until they actually start paying each other to borrow money. We'll all be rich then!

[Johnnybags]

Nothing but inflation from you to pay for Wall St. stock pumps. All inflation stocks being pumped up to charge you for the greedy bankers. Short all retails.

[lucius]

Silver @ $12.90 on the spot market.

just bought today at $12.44/oz

[ghemminger]

They are killing my industry - Contruction and Land Development - We need a FAST CRASH - then we can start building cheap homes again - THEY WILL KILL US WITH Stagflation for a YEAR!

[ghemminger]

So does the FED control the Market or it LOOKS more like the a game of chicken - and the MARKET is raping the FEd right now....LOL

[derdy]

I've been living frugally for the past 4 months. I put all of my money to getting out debt. No better feeling than that, next month I'll have one of my student loans paid off and the other by December.

Look at the foreclosure rate in August!! :eek:

http://www.msnbc.msn.com/id/20829849/

The 2nd biggest month of ARM resets is supposed to be October and the first in March of '08

[mdh]

What do you guys think of the idea of obtaining credit under pseudonyms and forgetting about it? Could this help spur on the crash we've been waiting for?

[TruePatriot44]

Dumb question, but where do you buy gold and silver?

[ghemminger]

I've been living frugally for the past 4 months. I put all of my money to getting out debt. No better feeling than that, next month I'll have one of my student loans paid off and the other by December.

Look at the foreclosure rate in August!! :eek:

http://www.msnbc.msn.com/id/20829849/

The 2nd biggest month of ARM resets is supposed to be October and the first in March of '08

It DOESN"T matter for ALL of us - We are all going to be hurt very badly - PRICES go UP - Our incomes stay the same....

Only people with LARGE hard assets can make any descions that might help them right now.....

How does it feel to be in the Cattle LINE to the Slaughterhouse?

[nullvalu]

The 2nd biggest month of ARM resets is supposed to be October and the first in March of '08

Yep, the "bloodbath" hasn't even occured yet..

[BIG_J]

What a clown show. Well; may as well buy a house.

[libertarianguy]

test

[mdh]

Dumb question, but where do you buy gold and silver?

Actually a good question - everyone has their favorite vendors, but putting some suggestions out there isn't a bad idea.

[mdh]

Oil may break $100/bbl before the end of this year.

[csen]

*gold Reaches $733.40 An Ounce On Comex, 27-year High

[libertarianguy]

test

[ghemminger]

What I'm interested AND MOST of you should be.....how do salary react during inflationary ressessions? MOST of us depend upon a pay check - I can already feel that I can buy very little at the Gas station or grocery store now!

[libertarianguy]

test

[Dustancostine]

I just opened a business in Minot, ND, about 40 miles from the border with Canada, I started taking Canadian dollars at face value.

[RiverRat]

What do you guys think of the idea of obtaining credit under pseudonyms and forgetting about it? Could this help spur on the crash we've been waiting for?
I think if everyone took out $1000 and put it in an envelope it would reduce the fraction that must be kept in reserve and that may do it. Of course buying Au/Ag is a better plan though.

[mdh]

I think if everyone took out $1000 and put it in an envelope it would reduce the fraction that must be kept in reserve and that may do it. Of course buying Au/Ag is a better plan though.

Yeah, I was actually thinking about buying into commodities of forex markets with the funds. :)

[Johnnybags]

What I'm interested AND MOST of you should be.....how do salary react during inflationary ressessions? MOST of us depend upon a pay check - I can already feel that I can buy very little at the Gas station or grocery store now!

or there is no reason to inflate, your paycheck lags and never will catch up it cannot anymore in general. You are going to get even less every time these ass*oles print more and inflate more to bail out the wealthy. Every time Congress comes up with more spending you lose. Its about to spiral out of control. Ya think the fixed income people are going to match the real inflation with adjustments? Its called government theft of personal resources. A hidden tax.

[RiverRat]

Oil may break $100/bbl before the end of this year.
I bet it does. What most people don't realize is that the price of oil hasn't changed in about 50 years relative to gold. It is the declining value of the dollar that is causing all hell to break loose. For a bit of perspective let's review the DOW, all time high you say? Look again: The Dow Is Crashing! (http://goldsilver.com/the_dow_is_crashing.php) Sure doesn't look anywhere near its high to me. :mad:

And zomg, tenth post!! That's more than I have at some forums that I've been going to for years. :)

[ghemminger]

or there is no reason to inflate, your paycheck lags and never will catch up it cannot anymore in general. You are going to get even less every time these ass*oles print more and inflate more to bail out the wealthy. Every time Congress comes up with more spending you lose. Its about to spiral out of control. Ya think the fixed income people are going to match the real inflation with adjustments? Its called government theft of personal resources. A hidden tax.

So we're all basically fucked?

[mdh]

I bet it does. What most people don't realize is that the price of oil hasn't changed in about 50 years relative to gold. It is the declining value of the dollar that is causing all hell to break loose. For a bit of perspective let's review the DOW, all time high you say? Look again: The Dow Is Crashing! (http://goldsilver.com/the_dow_is_crashing.php) Sure doesn't look anywhere near its high to me. :mad:

And zomg, tenth post!! That's more than I have at some forums that I've been going to for years. :)

Right; it's not the markets that are changing, it's the underlying currency in which those markets are traded that is changing. The same is true of oil. The price of oil isn't going up nearly as much as the value of a dollar to the people selling oil is going down.

[RiverRat]

That sums it up rather nicely. Until people are broke they won't realize it and by then it will be too late. And god forbid the media actually explains to them what happened. :mad: We do need Paul right now. Hopefully he can still do something when he gets elected next year though if we aren't completely the United Police States of America.

[Bradley in DC]

I've been living frugally for the past 4 months. I put all of my money to getting out debt. No better feeling than that, next month I'll have one of my student loans paid off and the other by December.

Way to go! A true Ron Paul supporter!

[mdh]

Way to go! A true Ron Paul supporter!

I have been living frugally and putting all my money into running some grassroots projects and surviving without working full-time so that I can spend more time doing political stuff.

[Bradley in DC]

since i am in the san fransisco bay area, i buy mine from burt blumert's company. Lew rockwell stops by frequently

http://www.lewrockwell.com/blumert/burt-gold.html

whatever you do, don't create a paper trail

Burt and Dr. Paul have a long-standing and close relationship.

[Stealth4]

anyone buy gold in the DC area?

[libertarianguy]

test

[Cowlesy]

Any of you have a Bloomberg terminal and do an intraday of practically any currency?

The intraday of the GBP is telling.

[Bradley in DC]

Frank Statement on the Federal Reserve's Interest Rate Cut
Washington, DC - Rep. Barney Frank, Chairman of the House Financial Services Committee, today offered the following statement regarding the Federal Reserve's interest rate cut:

“I am pleased the Federal Open Market Committee decided to cut the federal funds rate and the discount rate; I am surprised, however, that their continued concern about inflationary risk outweighs what I believe to be growing risks to sustained growth. I hope that, in this instance, markets and consumers will pay more attention to what the FOMC did than to what it said.”


http://financialservices.house.gov/

[Bradley in DC]

http://weeklystandard.com/Content/Public/Articles/000/000/014/124hipfy.asp

[mdh]

Source: http://www.wvlibertarian.info/

Over the past year, the financial news world has lauded record high numbers for the DOW, the NYSE in general, and other stock and bond markets. It's time we examined why these numbers were so high. Who is getting rich off these record highs? And most importantly, we must ask where the money is coming from to allow these highs. That question is, it turns out, the key to all of this...

But let's start simple. There are a lot of markets out there - dozens of commodities markets of varying sizes worldwide alone, plus FOREX markets, stock exchanges, bond markets, and still others. The majority of these use US Dollars are the currency around which trading is based, with the obvious exception of FOREX markets. The concensus among those markets which do use the USD is generally overwhelmingly positive - the DOW and other stock markets in the US are hitting record highs, oil is soon to be over $84/bbl and may hit $100/bbl by the end of this year. To put it simply, the people selling oil want $X amount of US Dollars for every barrel of oil. Has the inherent value of a barrel of oil truly increased so much over the past decade? The answer to this is simple - the inherent value of such a commodity has increase only slightly, mostly due to rising demand worldwide. But if you consider the rise in demand, it is not at all proportional to the rise in value of a barrel of oil in USDollars. So what, then, else could it be? Why do people selling oil demand more US Dollars for it today than they did a month ago? There are, we must note, two parts to this equation - the barrel of oil, and the US Dollar. If the barrel of oil did not drastically increase in value, we must consider that the US Dollar has instead drastically decreased in value.

The NYSE and other stock exchanges in the US trade entirely in US Dollars, too. A vast set of factors collude to determine the price of a stock, but in general very little of it comes down to simply how much money the company has in the bank. SUNW's stock prices have proven this time and again; a company with larger sums banked than the majority of its competitors has in fact performed poorly for the most part. Sales trends for SUNW generally follow the rest of the market, no different than any of its' competitors. Somewhere, somebody seems to think a bunch of money in the bank is a bad idea! So we should all take some time to consider just what it is you are owning when you buy stock. It's not simply the liquid assets of the corporation, that's for sure! Indeed, most companies diversify their holdings into other assets including hard assets and other semi-liquid holdings, even other stocks, or commodities/inventory. This means that a lot of what you own when you own a stock is not just US Dollars. That seems to be a good thing - after all, the DOW's at record highs. Those stocks, however, are still traded in US Dollars.

We must also consider commodities. Precious metals, oil, even food are traded on the commodities markets around the world. Like stocks, the value of these commodities seemingly continues to rise. Gold, today, hit a 27-year high! Has the inherent value of gold risen over the years? Unlike oil, which is consumable and has indeed been affected by increase demand due to growth in Asia and elsewhere, gold is not consumable, and is not subject to the same trends. So why now are people also asking a higher amount of US Dollars for the same amount of gold? The only obvious conclusion here is that the inherent value of US Dollars has decreased - drastically. So lets revisit stocks for a moment. Now that we've come to the conclusion that the US Dollar is losing value at a faster pace than ever, are we so sure that those NYSE stocks - traded exclusively in US Dollars - are actually gaining inherent value either? Or is it possible that, like gold, the value of the US dollar is simply shrinking, causing those high numbers? Certainly, stocks have gone up against the US Dollars. Certainly, oil, gold, and other commodities have as well.

But here's where we get into problems for the economy - or at least for the regular folks living in it...

No one needs stock to survive. Certainly, many people do not own any stocks or bonds at all. People do however require food to survive. People likewise need oil to continue their lives as they are today. The majority of people receive their pay for their labor in US Dollars - and salaries aren't drastically increasing at most levels. The majority of people do not own holdings such as commodities that are insulated from the collapse of the US Dollar. So as the value of the dollar continues to shrink against the value of gold, oil, and even food, prices will continue to rise, without people actually receiving any more money in turn. We know this is the case - we've seen prices at the pump rising along with the price in US dollars of a barrel of oil at the commodities exchange. Add to that the fact that the amount of money in circulation rises every time the Federal Reserve Bank borrows some more money to pump into the US banking system in the form of US Dollars.

Now ask yourself where all that wealth is going...

[mdh]

Also, a digg. http://digg.com/business_finance/The_myth_of_the_record_highs

[Stealth4]

Also, a digg. http://digg.com/business_finance/The_myth_of_the_record_highs

dugg

[Johnnybags]

So we're all basically fucked?

in commodities investment, yes. Federal spending at these levels is the direct cause, along with greedy banks and international bankers. Instead of taxing citizens and cutting expenses or letting the banks take their lumps, they are simply extracting the losses and deficit spending out of every purchase. Its Huckabees Fair Tax already going and its invisible on the receipt but its in there, believe me its in there.

[Bradley in DC]

http://www.freeliberal.com/archives/002983.html

[libertarianguy]

test

[derdy]

Silver spot @ $13

[ghemminger]

Silver spot @ $13

How can I buy silver with my paycheck this Friday?

[derdy]

Look for a local coin dealer in your area. try going to local.google.com and your search would look like this:

coin dealers near saint peters, mo

of course you would just substitue saint peters, mo for wherever you live

my coin dealer sells me 90%, or junk, silver @ spot. that would be dimes and quarters minted on or before 1964. i've got a crap load at this point. I also get bullion bars and coins just for the hell of it, but he sells that at spot + $0.20

[ghemminger]

cool - thanks

[derdy]

I also get gold 10 & 20 coronae coins from him. he sells those at spot while he sells US Gold Minted for spot + $15

the gold 10 coronae have .0979 gold content. they're a lot more affordable. i sure as hell can't afford the 100 coronae

[Hook]

It DOESN"T matter for ALL of us - We are all going to be hurt very badly - PRICES go UP - Our incomes stay the same....

Only people with LARGE hard assets can make any descions that might help them right now.....

How does it feel to be in the Cattle LINE to the Slaughterhouse?

Actually your incomes do go up, just delayed from inflation. Which means it is rather like a hidden tax used to bail out Wall Street. So it's not like the end of the world. It's more like having your tax rate go up a few percent.
The best place to be in a situation like that is to have a 30 year locked mortgage. Your income goes up faster than the interest rate on your mortgage, so you win on that deal. In a deflationary time like the Great Depression, the mortgage holders get screwed because their income goes down, and they can't afford their payments.
Of course the bank can call a loan at any time, so if things get really bad with inflation, they will probably pull your mortgage out from under you. Banks don't like loosing money :)

[lucius]

Of course the bank can call a loan at any time, so if things get really bad with inflation, they will probably pull your mortgage out from under you. Banks don't like loosing money :)

Astutely put... :D

[Hook]

Thanks :)

[ghemminger]

I am sooooo pissed off today I can hardly see straight. Today’s action by the Fed reminds me of how they danced in Charleston after firing the first shots at Fort Sumter to start the civil war. It’s definitely time to move my money out of bank CD’s into T’s and other currencies. How do these idiots think they will recreate a finance boom when borrowers have no skin in the game, lack the income, and housing pricing is falling. And the CC companies are not about to lower any rates as they will be facing large writeoffs. I’ll definitely start doing my part by curtailing as much spending as possible even though I have the money to spend.

[ghemminger]

We are experiencing Peak Debt. You see, most people, companies, gov’t have reached a point where the Titanic of Debt cannot ever hoped to be repaid. At this point you have 4 choices:
1. BK 2. Inflate the debt 3. Be a debt slave 4. Print your own money or tax people. Unfortunately No. 4 only applies to gov’t, not people or companies.

Sad to say, but eventually we will reach a point when servicing the debt will require so much money, time, and energy that the house of cards finally falls.

Consider this. We have a 9 Trillion dollar national debt. With a DGP of 13 trillion, it would take 8+ months of everything we have, do, etc. to repay this monster. Um, the thought ofnot having food, clothing, shelter, water, gas, car, etc. for me and my family for 8+ months is not what I call the AmeriKon dream.

[derdy]

This is the stuff that makes my blood boil:

The bankrupt American Home Mortgage is attempting to seize as much as $27 million that employees set aside from their paychecks as retirement savings. If it is successful, the workers may never see the money again. Employees around the country say American Home wants to release retirement money from a trust fund which would put it in the hands of large creditors.


http://www.cnbc.com/id/20829623

[Hook]

This is the stuff that makes my blood boil:

The bankrupt American Home Mortgage is attempting to seize as much as $27 million that employees set aside from their paychecks as retirement savings. If it is successful, the workers may never see the money again. Employees around the country say American Home wants to release retirement money from a trust fund which would put it in the hands of large creditors.


http://www.cnbc.com/id/20829623

Ain't gonna happen. Retirement accounts are immune to creditors.

[ItsTime]

Ain't gonna happen. Retirement accounts are immune to creditors.

right now they are