November 13, 2008


Anonymous said...

There isn't a better metaphor than the Titanic to compare to the U.S. Financial System! May God Have Mercy.

Anonymous said...

Economies that are based on continued growth always fail.

A tree will only grow so tall before it becomes too big and is toppled.

The oldest trees do not grow bigger and bigger, they reach a state of equilibrium where the only replace what is needed and the do just fine and continue to produce fruit, nuts, olives etc. for many years.

The global economic system does not accont for that. It only sees growth as the ultimate goal.

It is doomed to fail every time in any version of this.

Once you base an economic system on sustainability i.e. growth when needed only, can societies begin to be equitable, stable and prosperous.

The end may be near but the beginning of something else is that much closer.

It's not going to be that bad.

keith said...

Check out this video - pretty standard stuff these days.

Guy buys a house in CA for $600k. Now it's worth $300k. He can make the payments, but he decides to just stop paying.

Hell, why not. The government or the bank will bail him out if he stops paying.

These people were gambling, plain and simple. Gambling. Like buying stocks. Like going to the casino. Gambling.

Take the f*ckign home back and sell it to someone who'll put 20% down and make the payments.

I have no pity for this. Lose your job, sure. Got conned into a loan with hidden junk, maybe. Gambled and lost, nope.

Wind Farmer said...

Here's the Poseidon Capsizing:

In this version, things are a little more violent.

Anonymous said...

The USS George W. Bushco steaming blindly into the night with an ex-drunk in command with predictable results...

Just like reality.

Just like today, Right Now the US taking on water and sinking into the abyss.

Censure and imprison Bushco and Cheneyburton today, RIGHT NOW. Trial to follow a'la Gitmo.

Fuck Bush and Cheney. The MOST HATED MEN IN THE WORLD.

JaneZ said...

This continual call for capitulation, whether it be in housing, or stocks just hurts credibility. It is not coming back. Not in our lifetimes. Too bad that Goldman Sachs didn't keep Whitehead at the helm instead of Hanky Panky.

Whitehead sees slump worse than
NEW YORK (Reuters) - The economy faces a slump deeper than the Great Depression and a growing deficit threatens the credit of the United States itself, former Goldman Sachs chairman John Whitehead, said at the Reuters Global Finance Summit on Wednesday.

Whitehead, 86, said the prospect of worsening consumer credit woes combined with an overtaxed federal government make him fear that the current slump is far from over.

"I think it would be worse than the depression," Whitehead said. "We're talking about reducing the credit of the United States of America, which is the backbone of the economic system." Whitehead encountered plenty of crises during his 38 years at the investment banking firm and was a young boy during the 1930s....

You want capitulation? This is what capitulation will look like:

"Before I go to sleep at night, I wonder if tomorrow is the day Moody's and S&P will announce a downgrade of U.S. government bonds," he said. "Eventually U.S. government bonds would no longer be the triple-A credit that they've always been."

Please quit waiting for Schiff to be right so that you can jump back into the Next Great Bubble and start making lots of money again. I am pretty sure it is over.

Anonymous said...

"have no pity for this. Lose your job, sure." ------
Keith makes an excellent point with the above comment on job lost. The guy who "gambled" caused the guy to lose the job. The gambler tore down the system, bankrupting the company that employed the job loss guy. And many more "self-employed" and business owners had to lose their own jobs as well because of it. Sometimes we forget that the business owner who tanks also loses his/her own job as well. Now what we will see is the good, the bad, and the ugly all sharing the pain brought forth by greed.
H Spencer

Wind Farmer said...

From MISH:
General Growth Properties Inc., the No. 2 mall operator in the United States, has warned that an ongoing slump in retail sales, combined with the credit market lockdown, has pushed the company to the brink of bankruptcy.

Chicago-based General Growth Properties said in an SEC filing late Monday that it has $900 million of property secured debt and $58 million of corporate debt coming up for renewal by Dec. 1. It also faces another $3.07 billion in debt that matures in 2009.

Check out GGP's website to see if they own your Mall: