May 9, 2009

Remember in 2005 when we were talking about leverage - and how infinite leverage on mortgages was going to take down the world financial system?

10 comments:

next stop $10 a barrel 100% said...

Buh but yesterday you said it was Bushes fault

BuyerWillEPB said...

Ummm, yeah.

Anyway, yes I can be bribed to stop commenting against the Federal Reserve...

hahaha! sorry it's hard for me to say that, "Federal Reserve" without laughing.

Anyway, yes I can be "persuaded" to stop saying things against the (Fed) government if all my debts and my mortgage suddenly disappear into the TARPosphere.

Andrew from Russia said...

Does anyone recall the original GS paper on BRICs dating from 2001?

http://www2.goldmansachs.com/ideas/brics/book/99-dreaming.pdf

I think leverage has done a great job here. It appears that all that stupid "growth" which was said to extend up to 2050 was squeezed into the 2001-2008 timeframe thanks to massively leveraged speculation - disguised as "foreign investment". Leverage is all about doing more with less, right? To be sure, we didn't beat the G7 GDP figures, but at least we got inoculated against the neoliberal growth babble up to and well beyond 2050.

Anonymous said...

I don't see why more debt won't get us out of the problem of too much debt.

For that, I would need to be highly educated and financially sophisticated.

Anonymous said...

SWANNDIVE FORECLOSED!!!!!!!!!

Paul E. Math said...

Yes, Greg Swan has learned the downside of leverage the hard way.

I actually went to bloodhoundblog and read his pathetic blubbery pseudo-brave apology.

The hilarious part is the comments on his post - seems like everyone who goes to bloodhoundblog has been through foreclosure at least once.

Swan's blog attracts just the gaggle of financial 'ignoranuses' that you would expect, highly representative of the real estate industry as a whole.

Anonymous said...

"The American people have a right to know exactly what the White House plans to do with these terrorists,"Couldn't agree more, Senator.

I just want to hear you say it: What WAS your plan for them WHEN YOU OPENED IT?

Anonymous said...

Thank You Yen Carry Trade which create the Global Excess Liquidity that allow the infinite leverage to happen.

Will the Yen Strengthen

http://www.bloomberg.com
/apps/news?pid=email_en&
sid=aKwLrlGkfDLg

“The worst is over,” Takao Komine, 62, an economist and professor at Hosei University in Tokyo, said in an interview yesterday. “We’ll probably see the beginning of recovery at the end of this year.”

Went2puke said...

Keith, besides the great foresight you had with HP back in 2005, the newest, most obvious scam is ongoing right now, as we speak. It goes like this:

1- A few days before the vital economic indices are due to come out, Wall Street unfurls scores of its whores (pundits) to predict that the figures will be dire.

2- The Dow loses a few points in anticipation

3- The figures come out from various agencies--and they are really bad!

4- The spin doctors of Wall Street come out in throngs and they all say in unison: "the past month's figures were much better than expected!"

5- The Dow, Nasdaq, SP and all similar markets in the world shoot up!

6- The banks and the fat cats reap more money. The sheeple who still believe the spin doctors end up losing their savings!

And the cycle goes on!

Enjoy the ride while it lasts!

Anonymous said...

Kind of hard to make a profit when you don't have that 30% advantage from manipulating the Yen.

Now you know what happens when the Yen strengthen.

http://www.nytimes.com/2009/05
/09/business/global/09toyota.html

The Toyota Motor Company booked its first annual net loss in six decades Friday and warned that it would plunge even deeper into the red this year, a stunning reversal for an automaker whose breakneck expansion and record profits seemed unstoppable just 12 months ago.