Inside the belly of the Beast

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investorzzo's picture
investorzzo
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Posts: 1182
Inside the belly of the Beast

The collapse of the dollar and the deflation: A bankers get a lecture from Mike Maloney 9-22

http://geraldcelentechannel.blogspot.com/

Doug's picture
Doug
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Posts: 3159
Re: Inside the belly of the Beast

Jon

Great video.  One quibble, he observed at one point that US people are saving, therefore depriving the system of liquidity (I think that was the point).  I heard within the last few days that that is a common misperception, and in fact most of the money that isn't being circulated is loans that are being defaulted on.  I believe it was well over 90%.  I don't know what consequences this misperception has on the overall economy, but it says to me that there won't be a magic moment when consumers suddenly feel comfortable enough that they will go out and spend that money they've been hoarding.  IOW, there isn't going to be a consumer led bounce back.

What do others think of that bit of logic?

Doug

robie robinson's picture
robie robinson
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Re: Inside the belly of the Beast

I'm with you Doug, don't believe for a moment there is much "liquidity" remaining in g the pocket of the average american consumer.

robie

Davos's picture
Davos
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Re: Inside the belly of the Beast

600 billion in deleveraging of which 20 billion was voluntary, the rest was by default.

SagerXX's picture
SagerXX
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Posts: 2237
Re: Inside the belly of the Beast

I'd heard this story too (defaulting, not deleveraging).  But that chart is scary!  Nice dig, man!

investorzzo's picture
investorzzo
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Re: Inside the belly of the Beast

Anyone speak Russian, just want to confirm what was said just before he was told to end his talk?

bluster2000's picture
bluster2000
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Re: Inside the belly of the Beast

Nothing of importance.  He was just being asked to wrap up the presentation due to time constraints.

Wendy S. Delmater's picture
Wendy S. Delmater
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Posts: 1988
Re: Inside the belly of the Beast

Incredibly scary. OTOH, it makes me very happy I did not buy a home while we were in an obvious (if you were looking) bubble, and that I married a man whose mortgage  was paid off. Our home is worth less and less, but you can't be "underwater" if your place is paid for.

Add to all of the above the fact that housing cannot rebound any time soon, since most of the folks who defaulted are doubling up with relatives and their credit ratings are shot. The inventory is about to go back out into the market. Huge supply; timy demand. That's not a formula for higher prices for homes.

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