Daily Digest

Daily Digest 10/7 - The Great Deleveraging, Call For New Global Currencies Deal, The Downsides Of Clean Energy

Thursday, October 7, 2010, 9:48 AM
  • The Great Deleveraging: Economic Growth and Investing Strategies for the Future
  • This Is Our Manhattan Project?
  • Is A 90 Day "Mortgage Meltdown" Foreclosure Moratorium Imminent As The RoboSigning Scandal Goes Mainstream?
  • Bank of Japan Cuts Rates to as Low as Zero Percent
  • Call For New Global Currencies Deal
  • Consumer Deleveraging = Commercial Real Estate Collapse
  • U.S. Military Orders Less Dependence on Fossil Fuels
  • For Those Near, the Miserable Hum of Clean Energy
  • Solar Power Plants to Rise on U.S. Land

Crash Course DVDShare the Crash Course with your neighbors: gift them a deluxe edition DVD. (NTSC or PAL)

Economy

The Great Deleveraging: Economic Growth and Investing Strategies for the Future (Woodman)

In the wake of massive debt creation, history’s greatest deleveraging is now underway. For many investors the next decade will be brutal. This book’s messages are designed to help achieve real profits and create real wealth. They are meant to help you navigate a challenging environment—and, hopefully, thrive.

This Is Our Manhattan Project? (pinecarr)

A high speed electric rail line between Washington and Boston would cut the time to get between these stops in half. Rolling out electric small rail between the suburbs and the cities will be crucial in the post peak oil period. The electricity for this expansion could be produced by small nuclear power plants using thorium rather than uranium. So what is our plan?

Amtrak plans to roll out high speed rail by 2040.

Is A 90 Day "Mortgage Meltdown" Foreclosure Moratorium Imminent As The RoboSigning Scandal Goes Mainstream? (pinecarr)

The Massive Mortgage Mess as we affectionately call it seems to be getting new names with each passing day - the latest one is, quite appropriately, RoboSigning Scandal (funny how after the stock market, "robotic" technology will soon becoming equated with the biggest mortgage scam in history). During today's Kudlow segment, CNBC's Diana Ollick who is by and far the company's best (and only) investigative reporter, confirms various so far unfounded rumors, that the government is planning to institute a 90 day foreclosure moratorium as it deals with the realization of just how big and pervasive the mortgage problem is, and even worse, will soon be. It is so bad that even a typically ebullient Larry Kudlow is forced to note that this is the "housing equivalent of the credit financial meltdown" and that "this is going to go on for ever."

    Crash Course DVDShare the Crash Course with your neighbors: gift them a deluxe edition DVD. (NTSC or PAL)

Bank of Japan Cuts Rates to as Low as Zero Percent (guardia)

In a surprise move Tuesday, the Japanese central bank lowered its benchmark interest rate to a range of 0 percent to 0.1 percent, a tiny change from its previous target of 0.1 percent but a significant move back into an age of zero interest rates.

Call For New Global Currencies Deal (Deepak, Davos)

Last week, Guido Mantega, Brazil’s finance minister, warned of the dangers of a “currency war” as countries unilaterally intervened to prevent the appreciation of their currencies. The US has been pressing China to allow its exchange rate to rise faster, while several countries including Japan, South Korea, Brazil and Switzerland, have been intervening to hold their currencies down.

Consumer Deleveraging = Commercial Real Estate Collapse (JimQ)

Retailers expanding into an oversaturated retail market in the midst of a Depression, when anyone without rose colored glasses can see that Americans must dramatically cut back, are committing a fatal mistake. The hubris of these CEOs will lead to the destruction of their companies and the loss of millions of jobs. They will receive their fat bonuses and stock options right up until the day they are shown the door.

Energy

U.S. Military Orders Less Dependence on Fossil Fuels (damnthematrix, Woodman)

Even as Congress has struggled unsuccessfully to pass an energy bill and many states have put renewable energy on hold because of the recession, the military this year has pushed rapidly forward. After a decade of waging wars in remote corners of the globe where fuel is not readily available, senior commanders have come to see overdependence on fossil fuel as a big liability, and renewable technologies — which have become more reliable and less expensive over the past few years — as providing a potential answer.

For Those Near, the Miserable Hum of Clean Energy (jdargis)

Lawsuits and complaints about turbine noise, vibrations and subsequent lost property value have cropped up in Illinois, Texas, Pennsylvania, Wisconsin and Massachusetts, among other states.

In one case in DeKalb County, Ill., at least 38 families have sued to have 100 turbines removed from a wind farm there. A judge rejected a motion to dismiss the case in June.

Solar Power Plants to Rise on U.S. Land (jdargis)

Mr. Salazar is expected to sign off on perhaps five more projects this year; the combined long-term output of all the plants would be four times that of the first two.

“It’s our expectation we will see thousands of megawatts of solar energy sprouting on public lands,” he told reporters.

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

27 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Fed Officials Mull Inflation as a Fix

"The Federal Reserve spent the past three decades getting inflation low and keeping it there. But as the U.S. economy struggles and flirts with the prospect of deflation, some central bank officials are publicly broaching a controversial idea: lifting inflation above the Fed's informal target.

The rationale is that getting inflation up even temporarily would push "real" interest rates—nominal rates minus inflation—down, encouraging consumers and businesses to save less and to spend or invest more."

  • Other headlines:

Trichet `Trapped' by Banks' Addiction to ECB Cash: Euro Credit

US Must Maintain Confidence in Dollar: Volcker - CNBC

Nations see dip of dollar as threat to economies

Yuan could rise as 'supercurrency'

Dollar set for sharp decline, Goldman forecasts

U.S. bank industry entering new crisis: analyst

Dollar `Panic' Drop to Record 74 Yen Is Likely in 2011, Wakabayashi Says

Calif. budget plan relies on accounting maneuvers

Geithner Calls for Currency Cooperation Amid Rush to Weaken

Pharmacy industry loses 6000 jobs in September

AC casinos cut nearly 1400 jobs in September

GM gets 'junk' credit rating from Fitch

RI's pension gap may be $2.1B bigger

City budgets slammed by falling property taxes

U.K. Home Prices Plunged Record 3.6% in September, Halifax Says

IMF chief warns about lack of cooperation

Clear Capital Sees Evidence of Early Winter Slowdown in Home Prices

IMF revises U.S. growth down, jobs picture bleak

More people delaying retirement, survey finds

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

look how quick we get bi-partisanship when the banks are threatened...our government now exists solely to protect the banks, & everyone else is secondary...

Is HR3808 The Equivalent Of TARP 2 And Obama's "Get Out Of Bail" Gift Card For The High Frequency Signing Scandal? - Now that the High Frequency Signing (HFS, not to be confused with HFT) scandal is mainstream, and virtually every single foreclosure in the US in the past several years is under question, with the impact on mortgage servicers (who just happen to be the TBTF banks) could be just as dire as the fallout from the credit crunch, it appears that the get out of jail card for the banking syndicate has once again materialized, this time in the form of bill HR3808: Interstate Recognition of Notarizations Act of 2009, sponsored by Republican representative Robert Aderholt. The bill, it turns out, has passed both congress and senate, and is now quietly awaiting for Obama's signature to be enacted into law. In summary, the bill requires all federal and state courts to recognize notarizations made in other states. That's the theoretical definition: the practical one - the legislation, if enacted, could protect bank and mortgage processors from liability for false or improperly prepared documents. In other words, with one simple signature Obama has the capacity to prevent tens of billions in damages to banks from legal fees, MBS deficiency claims, unwound sales, and to formally make what started this whole mess: Court Fraud perpetrated by banks, a legal act, and to finally trample over the constitution.

smirking pig's picture
smirking pig
Status: Bronze Member (Offline)
Joined: Sep 26 2009
Posts: 26
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

Obama To Veto H.R. 3808

http://www.zerohedge.com/article/obama-veto-hr-3808

President Barack Obama won't sign into law an overlooked piece of legislation that critics say would make it easier for banks and others to process foreclosure proceedings without human signatures, a person familiar with the matter said.

 

alcatwize's picture
alcatwize
Status: Bronze Member (Offline)
Joined: Dec 24 2008
Posts: 78
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

What r we supposed to do, let everyone live in their house for free!  I guess I am an idiot for paying my mortgage.  Come on man.

 

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...
alcatwize wrote:

What r we supposed to do, let everyone live in their house for free!  I guess I am an idiot for paying my mortgage.  Come on man.

 

Oh. Gee. What was I thinking? Let me get this right. The banks blow up the economy by making fraudulent loans. In 2006 they drive 10 million new buyers into a market consisting of 70 million single family homes, of which not even 1/3rd are for sale. This drives prices into a massive bubble. Housing effects 1 out of 6 jobs. 70% of Americans are invested in houses and it is their biggest investment.

Wall Street sells this debt as an investment. Sells it to pension funds, cities and countries.

Surprise, surprise -t explodes.

We bail out this stupidity with obligations totaling well north of 10 trillion dollars.

The banks took shortcuts filing legal documents and have used forged ones to give to the court for foreclosures.

And YOU think we should pass a law allowing the banks to take houses without what the law now requires?

Maybe you think Lloyd is Doing God's work? Maybe you are Lloyd? Personally - the banks can go to hell. They deserve to fail. I could give a rats behind who lives in the house. They don't have the required legal documents to take the house then too #&*$ing bad. TFB!

ckessel's picture
ckessel
Status: Martenson Brigade Member (Offline)
Joined: Nov 12 2008
Posts: 465
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...
Davos wrote:
alcatwize wrote:

What r we supposed to do, let everyone live in their house for free!  I guess I am an idiot for paying my mortgage.  Come on man.

 

Oh. Gee. What was I thinking? Let me get this right. The banks blow up the economy by making fraudulent loans. In 2006 they drive 10 million new buyers into a market consisting of 70 million single family homes, of which not even 1/3rd are for sale. This drives prices into a massive bubble. Housing effects 1 out of 6 jobs. 70% of Americans are invested in houses and it is their biggest investment.

Wall Street sells this debt as an investment. Sells it to pension funds, cities and countries.

Surprise, surprise -t explodes.

We bail out this stupidity with obligations totaling well north of 10 trillion dollars.

The banks took shortcuts filing legal documents and have used forged ones to give to the court for foreclosures.

And YOU think we should pass a law allowing the banks to take houses without what the law now requires?

Maybe you think Lloyd is Doing God's work? Maybe you are Lloyd? Personally - the banks can go to hell. They deserve to fail. I could give a rats behind who lives in the house. They don't have the required legal documents to take the house then too #&*$ing bad. TFB!

Great rant Davos!!!   You are a mind reader.

Coop

alcatwize's picture
alcatwize
Status: Bronze Member (Offline)
Joined: Dec 24 2008
Posts: 78
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

Banks should fail and should not have been bailed out, no argument whatsoever.  That doesn't mean I encourage people to borrow money with no intention of paying it back.  How is this a stable and workable environment?

Again, am I to be the only dumb bastard that pays his bills?  You don't think I wouldn't like to stop paying my mortgage and go to the mall with the extra money???  Maybe I should and I should let the next guy be the greater fool.

 

 

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...
alcatwize wrote:

Banks should fail and should not have been bailed out, no argument whatsoever.  That doesn't mean I encourage people to borrow money with no intention of paying it back.  How is this a stable and workable environment?

Again, am I to be the only dumb bastard that pays his bills?  You don't think I wouldn't like to stop paying my mortgage and go to the mall with the extra money???  Maybe I should and I should let the next guy be the greater fool.

I've said it here before.......  I think we all should!

Force the Jubilee, install the new world order for sustainability.

Mike

 

 

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...
alcatwize wrote:

Banks should fail and should not have been bailed out, no argument whatsoever.  That doesn't mean I encourage people to borrow money with no intention of paying it back.  How is this a stable and workable environment?

Again, am I to be the only dumb bastard that pays his bills?  You don't think I wouldn't like to stop paying my mortgage and go to the mall with the extra money???  Maybe I should and I should let the next guy be the greater fool.

The banks didn't fail. We tossed borrowed tax payer money at them, we are on the hook for 10.4 trillion dollars. Conservative figure.

The banks blew up the economy. Every loan they made was a time bomb set to self destruct. 1.5 trillion in subprimes took out 1.5 trillion in primes. That was 2009. Still counting today. A 3 trillion dollar black hole that was then sold to investors too stupid to understand that the Triple A rating was a con job. 

In addition to all this the banks took court filing shortcuts. TOO EFFING BAD they can't legally foreclose. Good. I hope they TANK! You are advocating that because you have to pay and I have to pay that Congress should bend the laws, state that all the banks have to do is send a post card saying they are taking back the house. You know what - THAT IS EFFING BS. Law is no prove mortgage no foreclose. TFB.

Let the banks work out a 1% interest over 50 years. Let Congress take the home from the dumb @$$ banks who blew up the economy for all of us and give the title to Social Security and let the mortgage service go to grandma and aunt Sally. Eff the bankers. They are morons, they deserve to be in a bread line at Wal-Mart buying their kids formula at midnight once a month. THEY DO NOT DESERVE TO HAVE LAWS RE-WRITTEN BECAUSE THEY TOOK SHORT CUTS AND SCR#WED UP.

 

middleclassamerican's picture
middleclassamerican
Status: Member (Offline)
Joined: Apr 16 2010
Posts: 19
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

Rule of law must prevail regardless of consequences! This is the foundation of a productive economy. How many times are we going to allow the government to change the law in order to benefit the banks and just stand by!  Come on man!

Well said Davos!

TechGuy's picture
TechGuy
Status: Gold Member (Offline)
Joined: Oct 13 2008
Posts: 367
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

Davos wrote:

In addition to all this the banks took court filing shortcuts. TOO EFFING BAD they can't legally foreclose. Good. I hope they TANK! You are advocating that because you have to pay and I have to pay that Congress should bend the laws, state that all the banks have to do is send a post card saying they are taking back the house. You know what - THAT IS EFFING BS. Law is no prove mortgage no foreclose. TFB.

On the flipside: As as taxpayer that is seeing his currency being rapidly devalued because of all this banking bailout money. I don't necessary want the banks to spend more money on foreclosure fees, of money they borrow from the Fed. Many people are as much to blame as the banks by taking on too much debt than they could afford. Why should they be able to remain in a home they didn't pay for, while the few of us still have to pay our bills. What if all us stopped paying bills and our employeers stopped paying us? Why is it different for people that defaulted on their bills? As a tax payer and a saver, I am paying for it at both ends.

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...
TechGuy wrote:

Davos wrote:

In addition to all this the banks took court filing shortcuts. TOO EFFING BAD they can't legally foreclose. Good. I hope they TANK! You are advocating that because you have to pay and I have to pay that Congress should bend the laws, state that all the banks have to do is send a post card saying they are taking back the house. You know what - THAT IS EFFING BS. Law is no prove mortgage no foreclose. TFB.

On the flipside: As as taxpayer that is seeing his currency being rapidly devalued because of all this banking bailout money. I don't necessary want the banks to spend more money on foreclosure fees, of money they borrow from the Fed. Many people are as much to blame as the banks by taking on too much debt than they could afford. Why should they be able to remain in a home they didn't pay for, while the few of us still have to pay our bills. What if all us stopped paying bills and our employeers stopped paying us? Why is it different for people that defaulted on their bills? As a tax payer and a saver, I am paying for it at both ends.

Totally disagree. These morons have foreclosed on houses that were paid in full with cash. Pay the court tab. Don't use fraudulent documents and if you can't afford it file chapter 11 or better yet 7. NO shortcuts should be taken with titles. Ever. No special laws for banksters - ever.

I think we both agree that our dollars should never have gone to the banks to keep them afloat for any of this insanity.

Let the banks work it out with the folks who they were betting against. Take 1% over 50 years, deal with it, move on banks, you effed up, you effing pay for it now. 

Good watch here.

mainecooncat's picture
mainecooncat
Status: Gold Member (Offline)
Joined: Sep 7 2008
Posts: 488
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

Regarding Mortgage-gate:

For me, the most important thing to understand about this is that this problem with the titles goes well beyond foreclosures.

It effects everyone.

What if you are current on your mortgage, not in foreclosure, and simply decide to sell one day and find out you can’t because of title processing fraud that was committed by one of the various “servicers” who have their slippery tentacles slithering about in this needlessly and hopelessly complex process?

What if because of this same fraud you’ve actually been sending your monthly payment to the wrong entity for a few years?

It think its most immediate impacts are being felt in the foreclosure market but it clearly goes further.

 

Alcatwize,

I think you make valid and fair points.

However, I think the greater-evil part of the equation here -- to use blunt language -- is clearly the banks/mortgage industry. They’re running the show: establishing credit standards, creating the various mortgage products, making the loans, manipulating appraisals, slicing/dicing/securitizing the loans knowing they’re mostly bogus, playing fast and loose with the titles, etc.

These guys are supposed to be the experts and the professionals and have the macro-picture in mind as they continue to loan. An individual has no idea what’s happening in the broader market in terms of details like other peoples’ credit scores, LTV, income, etc. But the banks did/do. They knew they were making bad loan after bad loan. And they knew they were piling up. This is stuff they were capable of quantifying and qualifying. Whereas I have no idea what kind of financial situation my neighbor is in, unless a foreclosure sign suddenly pops up on their front lawn or there are matching his and hers Mercedes in the driveway one morning.

Did plenty of “consumers” make bad financial/investment decisions? Of course, I think it would be hard to argue otherwise. But a lot of those in foreclosure are there because the economy legitimately tanked and they’ve made valiant efforts to pay their mortgages.

If anyone is a deadbeat on the consumer end it would probably have to be the strategic defaulters -- those who could pay but don’t and choose to take a credit score hit.

Though even with these folks I’m not so sure, and here’s why: Defaulting and then entering into foreclosure is a legal option open to the borrower, and is well-defined within the contract. It lays out exactly what happens if the borrower ceases payment and a specific legal procedure is defined.

Living in one’s house without making mortgage payments until the bank evicts you isn’t squatting, it’s actually following the terms of the contract!

If the bank takes a year or two to evict you because of other factors like title fraud or a flooded/collapsing housing market then that’s how it works out. In fact the bank may actually be saving a little money by not having to hire a property management company to take care of the property -- making sure the pipes don’t freeze and the driveway is plowed for showings in the northern parts of the country. All this stuff ain’t cheap.

Also, concerning your statement about being the only one paying their bills. Well, you may be a little bit less of rebel than you think. The overwhelming majority of people are paying their bills. Otherwise, as DTM likes to point out, the system would really be in trouble and we’d have the bankers right where we want them. Laughing

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

Here's a post from my Running on Empty list in Oz...

This is the chart with 6 months of data - a 70% increase. http://www.peakoil.org.au/charts/safehaven.8oct2010.gif   While it is supposed to represent the increased demand for bonds as the stock market looks more risky, I'm beginning to wonder if it also shows the flood of money being spent by the Fed in supporting the bonds in a desperate attempt to keep yields low and prevent interest rates rising, which would catch the US economy in a debt trap.   Dave

 

  http://www.zerohedge.com/article/three-horrifying-facts-about-us-debt-%E2%80%9Csituation%E2%80%9D

Three Horrifying Facts About the US Debt “Situation”

Submitted by Phoenix Capital Research on 10/07/2010 08:16 -0500

Since too often financial articles consist of some stooge blathering on and on with opinions instead of facts, I thought today we’d simply focus on some FACTS about our current financial system which few if any want to acknowledge.

#1: The US Fed is now the second largest owner of US Treasuries.

That’s right, this week we overtook Japan, leaving China as the only country with greater ownership of US Debt. And we’re printing money to buy it. Setting aside the fact that this is abject lunacy, this policy is trashing our currency which has fallen 13% since June… as in four months ago. Want an explanation for why stocks, commodities, and Gold are exploding higher? Here it is.

 

#2:  “There are only about $550 billion of Treasuries outstanding with a remaining maturity of greater than 10 years.”

This horrifying fact comes courtesy of Morgan Stanley analyst David Greenlaw. And it confirms what I’ve been saying since the end of 2009, that the US has entered a debt spiral: a time in which fewer and fewer investors are willing to lend to us for any long period of time… at the exact same time that we must roll over trillions in old debt and issue an additional $100-150 billion in NEW debt per month in order to finance our massive deficit.

And only $550 billion of the debt we’ve got to roll over has a maturity greater than 10 years!?!?

So we’re talking about TRILLIONS of old debt coming due in the next decade. The below chart depicting the debt coming due between 2009 and 2039 comes courtesy of the US Treasury itself. In plain terms, we’ve got some much debt that needs to be rolled over that you can’t even fit it on one page and still read it.

 

#3: The US will Default on its Debt

… either that or experience hyperinflation. There is simply no other option. We can NEVER pay off our debts. To do so would require every US family to pay $31,000 a year for 75 years.

Bear in mind, I’m completely ignoring the debt we took on with the nationalization of Fannie and Freddie, AIG, and the slew of other garbage we nationalized or shifted onto the Fed’s balance sheet. And yet we’re STILL talking about every US family making $31,000 in debt payments per year for 75 years to pay off our national debt.

Obviously that ain’t going to happen.

So default is in the cards. Either that or hyperinflation (which occurs when investors flee a currency). Either of these will be massively US Dollar negative and horrible for the quality of life in the US. But they’re our only options, so get ready.

Good Investing!

Graham Summers

junkyard71's picture
junkyard71
Status: Member (Offline)
Joined: Sep 6 2009
Posts: 22
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

we pay our bills too, it's a must i believe.  why?  once the shtf and our society/economy really cracks there is going to be a lot of pain and suffering that i am sure most americans will not cope well with.  bad debt is sold to collection agencys who re-sell debt they can't so easily collect.  these 3rd 4th ...10th level collectors will be fairly relentless as deep depression grips the country.  if you're reading here then you're likely a reasonable responsible individual and the last thing you'll need as you struggle in the years ahead  is joebob from collection agency #7 nailing your knees to the floor so you'll sell your daughter into prostitution to pay him.

also remember the unspeakable topic:  if the shtf and (say) commerce collapses (or whatever it may be that fails) then an aweful lot of folks are going to die,  many will die in their homes, many will be killed in riots and mayhem and so forth but be sure if our society or economy take a header it will smell bad in densely polpulated areas.  what does this have to do with paying bills now?  as the dust settles years later those debts will still be listed as collectable and there will be many fewer folks around to collect from.  you likely won't be lost in the crowd and you'll be findable.  in those years while we're scraping the social and economic bottom you would give anything to not be on someones bad debt list.

if i sound gloomy and negative,  i'm not.  i find all this refreshing and cleansing.  i love america and life and hope the best for this country.  but i do not believe it can be "fixed" at all.  i believe it must collapse hard and rebuilt from the ashes.  i hope it is a better america for the next 200 years but i worry we will go the route of tyrany / despot first.  i think the middle class will elect leaders who promise to "recapture" our past ...  ala someone hitleresque.

battening down the hatches takes years for what will endup being a half assed job anyway but the effort will greatly improve ones odds i'm sure.  anyone not already engaged in getting ready will be wipsawed and at the mercy of fate and most of them will make all the wrong choices because they'll just be entering stage one of awareness and scared poopless.

i see no need to begrudge anyone in this mess.  homeowners defaulting is scarey to me for the above bad debt related scanerio.  paulson, bush bernake obamma et el  don't really matter anymore,  but in a destroyed world economy i don't see them sitting pretty, i see them in hiding (if they can stay alive that is)

the big banks?  they will fail and probably fantasticly. 

what matters to me is getting thru the first few years of whatevers coming.  i'll pay my bills now so that in the years america is trying to get back on her feet i have one less thing to worry about.  i see little else that will follow and haunt me in the new america i hope to be a part of creating. 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

"TOKYO (MarketWatch) -- Japan's cabinet Friday approved compilation of an extra budget of 5.05 trillion yen ($61.3 billion) to stimulate the economy, larger than the 4.8 trillion yen initially planned. The extra budget includes support for workers seeking employment and increases child-related support and subsidies for environmentally efficient home renovations. The government says the measures will add 0.6 percentage point to gross domestic product growth. The plan says the government will look for more efficient ways to use the country's foreign currency reserves, but stopped short of calling for creation of a sovereign wealth fund"

 

"TOKYO (MarketWatch) -- Japanese Finance Minister Yoshihiko Noda vowed Friday that the government would take "decisive action, including intervention, if necessary," to curb yen strength, after the dollar fell to a fresh 15-year low of 82.11 yen Thursday. Finance ministers from the Group of Seven nations will to meet in Washington this weekend, and currencies are likely to be a key topic, but Noda told a press conference that "Japan's stance on foreign exchange issues will not change either before or after the (G7) meeting." The dollar was buying ¥82.36, compared with ¥82.39 in late North American trading Thursday"

"France is not entering the process “with the map already drawn,” Lagarde said.

The recent intervention by Brazil and Japan in the foreign exchange market and tensions over the value of China’s currency highlighted that the present system is not “particularly effective” and changes were needed, she said.

“Massive liquidity” is allowed to move around the world without controls and capital flows can damage emerging market economies with sudden moves in or out of their banking systems, Lagarde said.

The goal would be to create “something working better than we have at the moment,” Lagarde said.

There may be a greater role for the International Monetary Fund’s quasi-currency, know as Special Drawing Rights or SDR, Lagarde suggested. Sarkozy has championed the SDR as a possible alternative to the dollar."

 

SagerXX's picture
SagerXX
Status: Diamond Member (Offline)
Joined: Feb 11 2009
Posts: 2219
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...
mainecooncat wrote:

But a lot of those in foreclosure are there because the economy legitimately tanked and they’ve made valiant efforts to pay their mortgages.

THIS.  

My wife & I are current & all good on the mortgage (& all other payments) front.  But we are stretched insanely thin and skating a razor edge.  Why?  Because the economy blew up.  2 years ago our biz was making money hand over fist.  What were we doing with the extra money?  Paying down debt -- not upgrading our cars or putting in a hot tub or whatever.  2 years later we're fighting the good fight but we are not winning at this point.  

I don't know how many "virtuous defaulters" there are out there.  I'd love to know.  Cuz in another 6 months or a year we could be one of 'em.  And yes, sometimes you win, sometimes you lose.  That's life.  But it pisses me off to see politically connected folks swimmin' in ca$h cuz they're TBTF.  Are we TSTM (Too Small To Matter)?  Just askin'...

Viva -- Sager

junkyard71's picture
junkyard71
Status: Member (Offline)
Joined: Sep 6 2009
Posts: 22
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

on rule of law.   i don't expect it will mean very much in awhile and then for awhile.  but someday it will be back.

i think the best approach is to clean-up, untangle and simplify ones obligations to gov't and big corporations.  paperwork etc will have a nasty way of staying around and in a new world todays obligations might not make much sense.

Mr. Fri's picture
Mr. Fri
Status: Silver Member (Offline)
Joined: Feb 21 2009
Posts: 220
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

What scares me the most about bills such as HR3808 is that congress is trying to write laws to change legal contracts between parties.  (Much like they did with executive’s pay.)  With disregard to the rule of law we (and businesses) can't depend on any legal deal they make.  We're in big trouble.  

 

 @ Davos –  You should try putting some passion into your posts.  Tell us what you really think. Laughing

Ramon Glyde's picture
Ramon Glyde
Status: Member (Offline)
Joined: Oct 8 2010
Posts: 1
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

Read the Constitution. There shall be no ips post facto law. This is blatantly unconstitutional. If they want to enact such a law, it can only be applied from the point of enactment.

Of course, this did not stop Bill Clinton from raising taxes and backdating the law.

Just more proof we live in a lawless society.

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5570
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

Sager,

sorry to hear that.  I hope things improve for you soon.  That's a tough spot to be in.

Best,

Chris M.

SagerXX's picture
SagerXX
Status: Diamond Member (Offline)
Joined: Feb 11 2009
Posts: 2219
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

Thanks for the well-wishes, Dr. Chris.  Yes, we're hoping things improve (or at least get no worse -- although in this economy/world...Undecided).  Got some ideas for new offerings @ the biz that some folks are excited about.  We're optimistic realists around here.  We know there's a way forward, we just haven't yet hit upon the exact formula.

And thanks for the running updates from ASPO!

Viva -- Sager

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

 

  • --
maceves's picture
maceves
Status: Gold Member (Offline)
Joined: Aug 23 2010
Posts: 281
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

I think laying the track for a fast train would be a good investment for a future strapped for petroleum resources.  I would hate to have to cross the country on a bicycle.

I have mixed feelings about AMTRAK though.  My grandson and I had a train adventure from South Carolina to D.C. two years ago.  The train was four hours late in the middle of the night, and we had an awful terminal to wait it out in.  Once on the train, it wasn't so bad. Good company, good food, pleasant service.  We already knew it was going to be slow.

If stimulus money has to be spent, it seems that infrastucture would be a good place to spend it.  Obama has mentioned trains several times, but  no one seems willing to back him up on that.  My guess is that gas will have to hit a price above which flying becomes unaffordable before we start to give serioius thought to it. 

Would we have to import everything to make a fast train here? 

yoshhash's picture
yoshhash
Status: Martenson Brigade Member (Offline)
Joined: Sep 20 2008
Posts: 271
wind turbine noise

For those who might not know,  I think that both the complaints of the people describe in the article and the article itself tends to be spreading misinformation- I think the fact that they were "reluctant converts" says a lot.  For those who have never heard a wind turbine, I urge you to stop one day and listen to one.  I can't speak for these particular turbines, or for that "low frequency syndrome" that some people claim to be sensitive to, but I have been to many wind turbines, and I can tell you that there is no "throbbing, vaguely jetlike sound" that is described in this article.  Yes, there is a whoosh-whoosh, but I find it very pleasant, and I would absolutely love to live in the shadow of one of these.   If there is indeed a throbbing, vaguely jetlike sound, yes they deserve to get them changed out or improved or compensated, but this is NOT typical of most turbines.

TechGuy's picture
TechGuy
Status: Gold Member (Offline)
Joined: Oct 13 2008
Posts: 367
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...

Totally disagree. These morons have foreclosed on houses that were paid in full with cash. Pay the court tab. Don't use fraudulent documents and if you can't afford it file chapter 11 or better yet 7. NO shortcuts should be taken with titles. Ever. No special laws for banksters

They can't, when the do, they get sued and lose a bundle, when the homeowner sues them.

I wonder if they are foreclosing properties that some criminal said they owned and commited banking fraud. They way this scam works is that criminal goes to the county clerk and ask for the copy of the deed, and then modifies it to state his identity. He then goes to the bank asking for a mortgage\home equity loan. The bank fails to check to see if the deed provided is a fake, and issues the loan. The Criminal takes the money and disappear. Six months later the Bank comes to foreclose on the property thinking they own the property, failing again to check the deed.

Still these incidents are few considering there are 5 to 10 million in bad mortgages. As a tax payer, and a saver, why do deadbeats get to continue to live in their homes not paying a dime while I still have to paid my bills. Why does the purchasing power of my savings and paycheck take a hit while these people don't?

As much as the banks are to blame so are millions of aledged homeowners how helpful fuel the bubble by purchasing homes that they never had any intention of paying back.

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest 10/7 - The Great Deleveraging, Call For ...
TechGuy wrote:

Totally disagree. These morons have foreclosed on houses that were paid in full with cash. Pay the court tab. Don't use fraudulent documents and if you can't afford it file chapter 11 or better yet 7. NO shortcuts should be taken with titles. Ever. No special laws for banksters

They can't, when the do, they get sued and lose a bundle, when the homeowner sues them.

I wonder if they are foreclosing properties that some criminal said they owned and commited banking fraud. They way this scam works is that criminal goes to the county clerk and ask for the copy of the deed, and then modifies it to state his identity. He then goes to the bank asking for a mortgage\home equity loan. The bank fails to check to see if the deed provided is a fake, and issues the loan. The Criminal takes the money and disappear. Six months later the Bank comes to foreclose on the property thinking they own the property, failing again to check the deed.

Still these incidents are few considering there are 5 to 10 million in bad mortgages. As a tax payer, and a saver, why do deadbeats get to continue to live in their homes not paying a dime while I still have to paid my bills. Why does the purchasing power of my savings and paycheck take a hit while these people don't?

As much as the banks are to blame so are millions of aledged homeowners how helpful fuel the bubble by purchasing homes that they never had any intention of paying back.

The bottom line - and there is always one - is we need to can the banks and our current money system. When I was a builder I came across some homes that just needed to be leveled. Our entire monetary system is one. Totally see what you are saying, just think that permitting postcards for titles isn't the answer. This thing is burnt. Toss it out and start new. Eff the fat bankers.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments