Aaron Krowne: Some People Are Still Denying The Bubble
It is perplexing to me how a thoughtful analyst, at such a late stage, could still be deying what is now not only evident in the statistics, but screaming out to us in everyday life. This last part — bubble denial in the face of all the people who are ruined or hurting from this mess — is now approaching the insulting. Please, bubble deniers, especially professional economists, give it up. At least, don’t come crying to me when you get tarred and feathered.
http://wallstreetexaminer.com/blogs/krowne/?p=11
Mike Shedlock: Tales of the Unexpected
Understanding Demand - 3 Questions:
Who wants a house that does not have one?
Who wants a house that can afford one?
Who does not have a house and is willing to pay substantially more than rental prices for one?
Understanding Supply - 2 Questions
How many have a house they can not afford?
How many have a house they soon will not be able to afford?
http://globaleconomicanalysis.…/tales-of-unexpected.html
New home sales lowest since june 2000
http://immobilienblasen.blogsp…west-since-june-2000.html
Eric Janszen - Crisis looms for entire economy
Newsday: Crisis looms for entire economy
http://www.newsday.com/news/opinion/ny-opmor205137262mar20,0,2597234.story?coll=ny-viewpoints-headlines
iTulip: Crisis looms for entire economy
http://www.itulip.com/forums/showthread.php?t=1125http://www.itulip.com/forums/showthread.php?t=1125
Eric Janszen: Housing Down, Gold Up
http://www.itulip.com/forums/showthread.php?t=1134
Dr. Michael Hudson
iTulip Select Interview
http://www.itulip.com
1. Credit derivatives are the most likely cause of a future financial system crash.
2. No one can hedge the risks posed by asset deflation except by selling inflated assets.
3. October 1987 is the model for the next financial crash.
4. The larger the debt, the bigger the debt deflation. Expect a long, slow economic crash.
5. The U.S. will not repay its foreign debt.
6. Hyperinflation of the dollar, if it happens, will be a political and not an economic or monetary event.
7. Since the time of the South Sea bubble, financial bubbles have been created by governments in order for governments to dispose of public debt.
8. The U.S. government wants to exchange social security claims for stocks so that stocks can be inflated and then allowed to crash, to wipe out the entitlement liability.
9. Most corporate balance sheet growth over the past few years is fictitious capital, what used to be called 'watered costs'.
10. The U.S. corp. sector is "fragile" due to excessive use of debt and leverage for the past several years.
11. There will be a huge asset grab and re-imbursement.
12. Hardly any money is spent on assets, rather, 99.9% of monetary payments are spent in assets, so the health of the FIRE economy is more relevant from a monetary standpoint.
13. Initially there will be mass defaults on mortgages and losses of houses to people with ready cash.
14. Later banks will allow home owners to stay in their houses, payments owned will be added on to the mortgages, and debt will go up without any money changing hands.
15. US housing debt will mimic the 1970s Brazilian compound interest curve