Comments on: Another Black Monday – Dow down 800

By: Ann

Ann — Tue, 07 Oct 2008 20:51:08 +0000

That number is probably going to keep growing as California slides into the Pacific.
Drowssap,
Yikes – I hope not! = – 0

By: Drowssap

Drowssap — Tue, 07 Oct 2008 20:42:38 +0000

Mortgage losses now calculated to hit 1.4 Trillion It should be noted that in April mortgage losses were estimate at 945 Billion. That number is probably going to keep growing as California slides into the Pacific. And of course this doesn't count car loans, credit cards, business bankruptcies, etc. etc. Losses are going to be in the trillions just in the USA. That $700 Billion is a small fraction of what the "bailoutters" need. It's also more than we can get our hands on without turning on the printing presses and creating massive inflation. If we do that old people will get hosed. At 10 to 1 leverage we could build a whole new banking system for $1 Trillion dollars ($10 Trillion dollars in loans).

By: Drowssap

Drowssap — Tue, 07 Oct 2008 20:20:36 +0000

Lynn David
From your link and it’s SPOT ON.

“If the system is so fragile that the collapse of the fifth-largest investment bank in America could bring the whole thing down, what’s going to happen in a few years when the No. 2 or No. 1 banks go bad…What’s Bernanke going to do, get in his helicopter and fly around the country repossessing cars and houses? This is insane.”
Jim Rogers, June 25, 2008, Moneynews.com

If the system is this fragile it’s a joke. It clearly isn’t serving the interests of the average American.

By: Drowssap

Drowssap — Tue, 07 Oct 2008 14:36:48 +0000

I suppose it's a little late for this but... 7 Reasons Why the Bailout Will Damage The Economy: Daniel Mitchell Lets just say that the best and brightest aren't exactly in charge right now.

By: Lynn David

Lynn David — Tue, 07 Oct 2008 07:28:47 +0000

I’ve always been a fan of gold. There was a time when you could tie increases in the inflation rate to it quite well. Then the Fed stepped in and things changed. Some think the Fed is manipulating gold, but cannot do so for too very much longer. It’s all a plan to create an NAU like the EAU with one currency called the Amero for Canada, Mexico and the USA. Lotsa low level buzz about it. Ron Paul even. Then there is a guy who is called DeepCaster. Sounds a little too conspiratorial to me, but then I’m even a fan of “24.”
See: http://news.goldseek.com/GoldSeek/1221843300.php

By: Lynn David

Lynn David — Tue, 07 Oct 2008 06:24:31 +0000

You’re welcome, Mary. This time around I was mostly in mutual funds, but I have been ill and in hospitals or nursing homes/rehab centers for over nine months. The result was that I had to liquidate most of my holdings earlier this year or late last year. As a result, I got better return on my investments even if that then went for my medical expenses. Medical billls swallowed my last corn crop sales all in one gulp too, even though that was two and a half times more than any crop I or my parents had sold from that farm before (due to the higher corn prices). I should have broken down and bought my [rather lousy] state-sponsored health insurance, more ‘normal’ insurers find me to be uninsurable due to a few prior conditions.

By: mary

mary — Tue, 07 Oct 2008 04:11:32 +0000

Yeah – that sums it up. Many will sink. Another man shot and killed his family, then suicided, in Los Angeles today. Reason: Financial difficulties.
Thanks Lynn for the tip.

By: Drowssap

Drowssap — Tue, 07 Oct 2008 03:00:18 +0000

Great comment I ran across

The Titanic is sinking. Captain Bush ordered first class passengers aboard the few $700B lifeboats. He and his crews have their own lifeboat. We are all left to drown.

That pretty much sums up the bailout.

By: Lynn David

Lynn David — Tue, 07 Oct 2008 00:12:44 +0000

I remember 1987, I liquidated my stock holdings before that and bought puts on the DOW index. Made a lot of money on them.

By: Drowssap

Drowssap — Mon, 06 Oct 2008 23:40:52 +0000

BTW, I should add that nobody on Wall Street thought the plan was going to work in the first place. It’s not like they figured it out this morning and decided to sell in a panic. Even at $700 Billion the bailout is 50X too small to solve the problem.
However $700 Billion is more than big enough to trigger runaway inflation and huge interest rate hikes. I feel sorry for anyone living on a fixed income.