Monday, November 17, 2008

run

I've been as busy as a hen on an anthill - doing lots of reading, trying to figure out what the heck is going on in this world. I don't have much of a clue, but that is okay - nobody else does either. I could write about what I think is going on, but there is a shortage of tin foil, so I will spare you from that for now.

The $700 billion bail out package in the States is more like $2 trillion, and it is probably much more than that. Goldman Sachs is purportedly using $7 billion of the $10 billion that they received for Christmas bonuses for the big-wigs. WTF? Same band, same song. RE continues to unwind, but things are sticky on the way down, or are they? Now, the "Obama Factor" is going to save Vancouver RE! The credit card companies keep cranking up my credit limit, and offering me 2.99% rates for six months - to go on a winter vacation, or buy Christmas presents, or consolidate other debt (that I do not have). Credit Crunch my eye. Condo projects are biting the dust in Vancouver, Toronto, Calgary...and there are big holes in the ground where the buildings were supposed to go up. So reminiscent of the early 1990s. Garth Turner is writing about squirrel meat and canned beans, shot guns and ammo (he is sounding jaded). I was squawking about a Depression 5 years ago, and people though I was nuts, but now it is in the main stream of consciousness. Have a gander at this video - from Fox News, no less. You have to love such an interview taking place in a bar.


It is all getting terribly repetitive. Deck chairs and icebergs and sinking ships. Gaack!

Most poignant quote of the day - Forget about gold – the ONLY precious metal is lead.

10 comments:

Strategic Voter said...

So what do you think of the $75 billion our government has allocated for buying up mortgages? As you note, there is no shortage of credit, which belies the official explanation of recapitalizing banks. I think that the policy-makers know banks will have no incentive to keep prices high when they foreclose on a lot of CMHC-insured homes at once, so they want to own those mortgages to prevent a fire sale. As I read it, a bank just needs to sell a CMHC-insured foreclosure for whatever the market will bear, and then they get reimbursed for their losses.

Anonymous said...

Gimme a break! I am NOT saying that what he is saying won't come true because it very well could...I am saying that it would all be the same with EITHER government in charge...

Despite what these neo-conservatives are spouting, lack of government regulation is why the U.S. is in the current state it is...pure Free market only works for the very rich and that is being proven...

Government bailouts at this stage make me furious...it basically says "Go ahead Mr. CEO...run your corporation any way you please because we have the average stiff out there to bail you out if you F*ck up." I know..we're damned if we do and damned if we don't...they should be firing all these CEOs before laying off the masses...

pbell

kabloona said...

Well, looks like at least one of the Canuck banks took a serious hit from exposure to Lehman Bros CDOs:

http://tinyurl.com/6bo7fc

Scotiabank sees $890-million hit

"The biggest hit is $560-million for “valuation adjustments,” the bank said, including writedowns on securities in the banks' inventory and declines in the value of collateralized debt obligations, which are bundles of bonds."

solipsist said...

So what do you think of the $75 billion

Not the socialism that I subscribe to.

they should be firing all these CEOs before laying off the masses...

But that would just frig up The Plan!

one of the Canuck banks took a serious hit

They are all going to. CIBC, Royal Bank will likely fail. They will all likely fail. That is part of The Plan.

patriotz said...

...pure Free market only works for the very rich and that is being proven...

The US does not have a pure free market, it has socialism for the rich.

Under a pure free market the rich would still be making money but at least it would be from producing real goods and services instead of the casino games and government-funded industrial complexes (military, prison, medical, education) the US economy is now based on.

Art Vandelay said...

This is scary, but I agree with patriotz.

But I'd go further: it's government that's the problem.

Nobody forces anybody to use a bank. There are alternatives.

But nobody gives me a choice whether I want government. I'm not talking the Dog & Pony Show, aka elections.

I'm not talking government itself. Which will put me in jail if I don't pay my taxes. Taxes that are then redistributed to bankers who took inordinate risks. To automakers who make cr@ppy products. To homeowners who made bad decisions.

Government. THAT's the problem.

Anonymous said...

Patriot. Yes, I agree...the US isn't a true free market, but some down there would like you to believe it is....

and we all know huge corporate bailouts smack of socialism..

I agree Solip...it isn't the socialism I subscribe to either...:-(

Anonymous said...

Art...so you're saying that stringent government regulations are "not" the answer to thwart the greed of reckless lenders?

pbell..

ps, the last post was mine too.

solipsist said...

Yikes! TSX is down 8-ish percent so far today. 3846 on January 18th?

I wish that I had the guts and knowledge to short the crap out of this.

Downtown Vancouver Realtor said...

LOL!!

I love Fox News!! Its better than the comedy channel! Infotainment at its best.

The scary thing is that in US media studies, a huge number of Americans actually believe what is said on this channel.

Scary...