"NO BID" threat looming. When the computers stop trading...any tradable funds may drop to zero!

this is truth

this is why I sold our house in 2006 and did not purchase another one

just think of the fact there are fewer young people than boomers...that those young people will NEVER live as well, earn as much, save money as the boomers did

that those young people are 10x deeper in debt just to go to college, have emerged into a world where they are earning less yet paying 500% more for just about everything needed to live than the boomers did

How the fuck is this system going to support houses that cost $500-$1MM in most urban areas of the USA?

That is just the beginning

The fact that this house of cards has not blown over so far has given many who were nervous a new false sense of security...and because of this more and more people - even the cautious - are being sucked into the casino

this is always the last phase of a blow off...when even the previous bears capitulate and join the market ...just before the implosion

sorry , just the way I see it, and I'm willing to eat all the losses if I'm wrong and a huge bull market is about ot start

but frankly, given global demographics, global consumer debt levels, global government debt levels, I think we're about 5 minutes from midnight

This is an important thread. It isn't just trading that is done electronically that is so important either. Because of our high tech society combining with fractional reserve banking, all the money you think you have that isn't in your hand is just a glowing electron in a computer somewhere.

You don't have paper dollars in a vault and it sure isn't backed by anything tangible. Your savings account, your checking account, everything is really only just data because banks are only required to keep about 1% of total deposits on hand.

Think about this folks. How many of you actually use paper money at all? Most people use a piece of plastic that a machine uses to tap into the data at your bank.

When the trading stops it isn't going to take days for the effect to ripple through banks and down to consumers. You will most likely find out that something disastrous has happened when you swipe your card at the gas pump, or the grocery store, or the fast food restaurant and it just doesn't work.

Got preps?

They will screw you with low exchange rates and transaction fees. AT least for now, for those traveling, better to trade on the other side... as opposed to do it in the US before travel.

..Well having no idea how financial markets actually work, I can see how a uninformed person would reach illogical conclusion based on false premises. I will help you,bonds trade at inflation + 2-3% for people/corp/govt who have excellent payment history..the less your credit history or current financial situation, you pay more than 2-3% above inflation. For example, I just bought a 2010 used car for $11k, I put down $5k and my car loan was 2.9% for 48 months. The car dealer's loan rate was 12%, now that was for the guy with a repo and bad checks and late payments, Greece if you will, BUT somebody was willing to lend him money as long as the reward was high enough. Now the problem is if the borrower can afford the payments at 12%...Greece cannot under it's current conditions...it's failure has already been calculated into all bond purchases. Don't think of a bond as any different than a car loan, mortgage...it's a loan at a interest rate and a schedule of repayment..it may or may not be secured with assets and there are legal claims in court if need be down the line but bonds are loans...no special magic, no secret cabal...you can buy them if you have the funds or join a mutual International Bond Fund...some will hold a very small portion in high interest/high risk bonds because "most" are repaid and the return is excellent..IF you can absorb the loss if they default. No one has a high percentage of their portfolio in these, rather no well run financial institution...thats why Germany/France is lending the money..banks and trading houses won't buy and can't find buyers, the rate of return they demand is higher than Greece can afford...so the Nations are buying loans that normal people want no part of. So if Greece defaults,German and French tax payers are on the losing end. A few banks will also take a hit but they have already sold off or written off Greece as a loss anyway.

Most loans to NINJA customers with horrible credit SHOULD NOT BE GIVEN. They are allowed because it gives the banks a legal excuse to say they have new ASSETS when they know the ASSETS are CRAP!

The system runs on DEBT, so the banks simply need "PEOPLE SIGNING ON THE DOTTED LINE" to fraudulently bolster the "debt end".

This is why the housing market was opened up to NINJA. The banks knew they would ultimately NOT get stuck with the non-payment part, yet they still get to show the loan as an asset for awhile, then it gets wrapped in some other complicated "fund" scheme and sold.

Am I wrong?

Yes.

In the 1970s Jimmy Carter got a little federal housing program started called “The Community Re-investment Act”. It required banks to make loans to people who could not afford them by offering government subsidies to the banks who were willing to make those loans. Very few loans were made because the banks weren’t dumb enough to write bad loans they knew were not going to get paid. Under Bill Clinton’s administration, the Community Re-investment Act was amended to force banks to make the bad loans by fining them greater amounts than the bad loans were worth it they didn’t make the loans. So, banks were forced take the lesser of two losses and write a ton of bad loans.

To get out from under the mountain of debt they were piling up they created Credit Default Swaps or CDS. That is when you have a huge pile of bad loans you need to get off your books so bad, you take a loss and sell it to a bigger fish for pennies on the dollar just to get rid of it. The CDSs played leap frog up through the bigger and bigger banks until the last frog got squashed when the leaps couldn’t rise high enough anymore. The crash took out Leman Brothers who was insured by AIG who also had lots of major investors. Etcetera, etcetera, etcetera. It was one gigantic pyramid of dominoes.

Back up a bit to spread the blame a little more. Under Reagan, banks were not just deregulated, they were allowed to expand beyond states to grow into national and international size. That one decision meant that the bigger the banks got, the bigger and more wide spread the fall would be.

In 2004 (or 2005 I think), the W. Bush administration attempted to act to limit exposure to the bad loans that banks were being forced to make by the federal government, but in typical Republican fashion, they left their balls at the door and got steam rolled by Maxine Waters, Barney Frank, and other top Democrats on the Banking Committee. The usual claims of racism for banks not loaning to poor (read black) neighborhoods stopped the effort dead in its tracks. Republicans as usual were too afraid of being labeled as racist by people who actually are racists. With that and the surging economy in the mid 2000s, the housing market exploded. The debt from the bad loans exploded too until in 2008 it just blew chunks all over the entire money market.

This wasn’t just the greedy evil banks, or the Federal Reserve. It was the end result of three decades of government forced socialist re-distribution of wealth. It’s like Margaret Thatcher said, “The trouble with socialism is that eventually, you run out of other people’s money.”

Last Edited by Resister on 11/12/2012 12:47 PM

The trouble with socialism is sooner or later you run out of other peoples money , for the bottom feeding vampire squid mutants to gorge themselves on

I hope you bought things to survive with, because you don't have a home somewhere, gas is more than likely going to be gone or so rare that you won't be able to get anywhere.
A mule and wagon or a cut down small car will work.

Ann Barnhardt.

She imparts some scary Religious beliefs.
She can't ever have been told how to wear a tie.
I bet she's damn scary when she's really mad.
She is a zealot.

BUT her financial summary is spot on.

Compound interest and fractional reserve banking have the effect of spiralling wealth to the TOP. The banks were in on negotiating the low-income housing purchase scam along with the FEDS. They are tied together at the TOP.

Rise in interest rates will trigger immediate deflation...the Fed's toolbox is looking pretty damn bare lately...

Yes, she seems to be getting on a real good point, then suddenly whips out bible scripture as fact completely throwing people out of sync. There's no need for it.