Housing Bottom - Oh Really? 60 comments
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The U.S. propaganda machine was positively giddy last month when the latest “existing home sales” data showed a “jump” to an annualized rate of 5.2 million units. However, with sales in previous months this year much lower, total sales are unlikely to exceed 5 million units for this year, even if the July pace is sustained until year-end.
Despite this modest bounce in sales, the “experts” were (once again) saying the U.S. housing market had “bottomed”. This mindless euphoria was epitomized in a Bloomberg article with a quote from Ellen Zentner, a senior economist for the Bank of Tokyo, who stated, “We can count on housing no longer being a drag on the U.S. economy.”
Oh really?
Just a few days earlier, it was announced that foreclosures had set another all-time record in July, at over 360,000 units (an annualized pace of over 4.3 million units). An additional 80,000 homes were “repossessed” in July (i.e. the owner chose to “walk away”), which works out to nearly 1 million more units when projected over a year.
August's numbers have just been released, and though there was a small improvement the numbers still represent a continuing catastrophe in this sector. Total foreclosures were still above 350,000, and project to an annual total of 4.2 million units. However, that total could easily be surpassed – given that the numbers are still trending higher and we know there are millions more foreclosures looming on the horizon.
As I have reminded people frequently, the U.S. mortgage market is about to begin a two-year spike in mortgage-resets with its infamous ARMs (adjustable rate mortgages) - which already have the highest default/delinquency rates among all U.S. mortgages (see “U.S. mortgage-crisis to get much worse in 2010-11”). There is a very good reason for the appalling rates of delinquencies and defaults on these mortgages.
According to a CNN article, 60% of all “option-ARM” mortgage-holders have only been making minimum payments on these mortgages. This number soars to over 80%, with respect to the option-ARMs issued in 2006 and 2007. As a result, the average increase in monthly mortgage payments when these mortgages reset is over $1060/month. Since most of the people who are making minimum payments cannot possibly afford to pay out an extra $1000/month, most of these mortgages will default the moment they reset.
The Obama “mortgage rescue” plan was supposed to solve these problems because U.S. banks would voluntarily choose to modify all these mortgages to an affordable level. The reality is that this program has been a dismal failure, due to the banks themselves sabotaging the process by “losing” paperwork, denying assistance to eligible mortgage-holders, and even when willing to “modify”, the change in terms which they offer is still often unaffordable – and far above the limits of what this program was supposed to offer borrowers.
The reason for this non-compliance by most U.S. banks is that on a practical basis, they will profit more over the long term by foreclosing rather than forgiving. The idea that these stingy, uncooperative banks will suddenly start making massive modifications for all these resetting mortgages is (to be charitable) nothing but wishful thinking.
Thus, the “good news” which the talking-heads in the media have been braying about over the last few weeks is that if U.S. home sales can be sustained at this slightly elevated rate (a big “if” in an economy with falling wages and rapidly rising unemployment), and if the rate of foreclosures doesn't worsen significantly from current levels (an even bigger “if”), then total sales in the U.S. this year might slightly exceed the total number of foreclosures and repossessions.
To suggest that a housing market which is barely able to digest only the total number of foreclosures and repossessions has “bottomed” is obviously utter lunacy. However, there is no need to take my word for this, instead we only need to look at the behavior of U.S. banks.
As I have also frequently observed, U.S. banks are deliberately holding millions of already-foreclosed/repossessed properties off the market (see “Delinquent U.S. mortgages break record AGAIN”). Despite the fact that total U.S. sales are barely sufficient to cover the number of foreclosures and repossessions, the sales of these units have never exceeded 50% of total sales – meaning that every month since this collapse started U.S. banks have been building up their own “shadow inventory” of homes (conveniently ignored by the U.S. media).
This trend has become much more extreme, with numbers from the last two months indicating that U.S. banks are now on track to sell less than 1/3 of their total foreclosures/repossessions this year – which works out to more than an additional two million units being added to their unsold inventory this year, alone.
Part of the reason why U.S. banks are keeping these homes off the market is so that they don't have to write-down these properties to their real value (which must be done the moment the house is sold). By keeping them off the market, they can maintain their fantasy-valuations on these properties which sit on their “stress-tested” balance sheets.
However, the second, equally-obvious reason why U.S. banks are holding these properties off the market is to try to simulate a “bottom” in this market. It is elementary economics that when you increase the supply of something, you reduce the price; and when you decrease the supply of something you increase the price.
Listing all these properties on the market as the banks take possession would mean millions more unsold units simply sitting on the market – which would mean the same double-digit price-declines which have been reported month after month for the last two years. Conversely, by artificially reducing the supply (by at least 50%), these market-manipulators appear to have caused prices to momentarily stabilize. Obviously, that “stabilization” ends (at the latest) when these banks start dumping their shadow inventory onto the market.
Even if the banks don't attempt to sell these properties, either the continuing collapse in the U.S. job market or the upcoming spike in mortgage-resets (and the millions more foreclosures and repossessions which must result) will quickly result in U.S. house prices again plummeting downward.
With over 20 million empty homes in the U.S., and U.S. apartment vacancies recently hitting a 20-year high (see “Apartment vacancies NEW nightmare in U.S. housing collapse”), there is no possibility of this market reaching any sort of equilibrium – which is what the propagandists supposedly mean when they claim that this market has “bottomed”. In fact, with supply continuing to grossly exceed demand, there is no possibility of any equilibrium in this market for several years.
In roughly another ten days we will see the next report on “existing home sales” in the U.S. Regardless of what the actual number is, we can be certain that the propaganda-machine will put its usual positive spin on it. For those seeking to resist this brainwashing, simply subtract 5 million from that total sales number. I guarantee you that will be in no danger of being fooled into believing this market has “bottomed”.
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Care to point out my "half truths"?
And yes I've been to interior cities and villages and things are getting pretty dicey everywhere. Have you been to China lately? Have you been to any gritty factory and dusty towns?
Dong Guan the world's factory between Shenzhen and Guongzhou lacked the hustle & bustle and vibrancy in the towns and tons of migrant and laid off factory workers waiting for buses holding tight to their bags. It's getting so bad that I hear workers are giving bribes to their supervisors and for some female worker their body. And sadly lots of suicides. Lots of petty crimes even in Shenzhen and I dared not leave my hotel room by myself at night. Some fancy Cantonese restaurants and even KTVs are closing due to lack of customers.
On Sep 11 12:43 PM Jeff Nielson wrote:
> Doubleshort,
>
> A classic example of half-truths. You claim to have been to China
> 30 times, but have you ever visited its INTERIOR cities (which have
> few, Western visitors)? The Chinese government, itself, acknowledges
> that its coastal, export-oriented "first-tier cities" are only experiencing
> 1% GDP growth.
>
> And don't start yammering about "falling exports to the U.S." Prior
> to the collapse, total Chinese exports to the U.S. AND Europe comprised
> less than HALF of all China's exports.
>
> China has a one-party dictatorship? The U.S. has a two-party dictatorship.
> What's your point?
>
> As for U.S. GDP versus China's GDP, those who have taken my previous
> advice and enlightened themselves through viewing Chris Martenson's
> superb "Crash Course" could tell you that $2 trillion per year of
> annual U.S. GDP is nothing but statistical padding - non-economic
> activity, where no transactions are taking place.
>
> The rest of the GDP is built upon borrowed money. Period. $57 TRILLION
> in accumulated debt - and growing exponentially. The U.S. is now
> slowly being cut off of credit from foreign governments. This leaves
> two possibilities, either an EXTREMELY painful (but necessary) debt-meltdown
> (which would then set the stage for a REAL recovery), or, hyperinflation
> and THEN a painful debt-meltdown. All indications are the U.S. government
> is going with "Plan B".
>
> As for your data from China, again, nothing but half-truths. As I
> pointed out in a comment earlier this week, wage data WITHOUT cost-of-living
> data tells us NOTHING about relative levels of wealth.
>
> As I also pointed out, if China borrowed $57 trillion, they could
> pump-up those incomes awfully fast - through inflation, as was done
> in the U.S. Since the Federal Reserve was created a century ago,
> the USD has lost 97% of its value, meaning that the NOMINAL level
> of U.S. wages has little meaning.
If the management of the companies here routinely take 20% of a companies profits legally as salaries (such as in GE's case IMO), then how big a probles is corruption in China? at 10-15% they are still ahead by at least 5%.
The stats are cooked and they rewrite the laws to benefit themselves? For shame, where could they have possibly have gotten the idea to do things like that? Maybe they have off-book assets or mortgages that arent written down at market value too.
Doubleshort, you can read EVERY article I've ever written about China, and you will NEVER find even one "recommendation" to buy Chinese stocks.
I'm not a market-pumping, stock-jockey - my background is in economics. As others have observed in their own comments, virtually every wrong you (and others here) accuse China of being guilty of is at least as bad in the U.S. (I hate hypocrisy).
However (as was also pointed out), there is one GIGANTIC difference between China and the U.S. The U.S. has MASSIVE, structural deficits and the entire economy is literally drowning in debt.
China is a surplus-economy, with relatively no debt, and huge pools of savings. And as I pointed out in my article, the China-bashers contradict THEMSELVES.
They simultaneously claim that China's citizens are not spending enough, while ALSO claiming there are "bubbles" everywhere.
You people need to make up your minds on which propaganda-slant you plan on using - and stick with it, rather than arguing against yourselves with contradictory arguments.
seekingalpha.com/insta...
On Sep 11 04:01 PM NickelMan wrote:
> This is just an ignorant statement from the author of this article.
>
>
> "virtually every wrong you (and others here) accuse China of being
> guilty of is at least as bad in the U.S. (I hate hypocrisy)."
>
> The US gov may try to slant and spin info to appease the masses but
> it usually stays in the upper echelon of those in control and we
> are afforded the right to question and challenge what is fed to us.
>
> Plus we are also afforded the right to Vote and try get people in
> there that may some day do a better job.
> China is blatant, bold and just out right lies, manipulates and fabricates
> and it stretches all the way from the top leaders down the chain
> to the lowliest of mangers in the lowliest of places. Then to top
> it all off the PRC would not and does not afford their citizens the
> right to challenge and questions what is fed to them! Then we all
> know about the voting that is enabled for the average Chinese citizens
> so I don't even need to dive into that.
>
> Plus you may not specifically recommend buying stocks in China, but
> you it hold as the "Holy Grail" of economies, place to do business
> and prosper, so one can also infer "Invest" from your sentiment.
> So save your denial!
>
> Nick
Gunpowder, treason and plot.
I see no reason why gunpowder, treason
Should ever be forgot"... Guy Fawkes Poem
The parable of a further collapse of housing mirrors that of the “house” of our country. Fawkes’ warning of the reordering “by other means” of the coming Storm writ large - one possible and preventable future. Do we have it, in each of us, those who “know” what is happening, to collectively prevent this dark future; by holding accountable, those who caused this collapse, from not repeating it again? I fear the next (preventable, if we act now) collapse will be the last straw for any sort of orderly response.
An aside here is important: I assess the quality of Seeking Alpha Articles by: author content & facts and, by the measure and erudition of the comments it produces - or, does not. "Erudition is the depth, polish and breadth that is applied to education from further readings and understanding ... The Latin educare means to "lead out" from ignorance; hence to think critically and logically. An erudite person has both deep and broad familiarity with a subject." Wikipedia
Mr. Nielson's well-argued article has produced both. Readers and writers of Seeking Alpha come for many reasons but, one of the most important is to become more erudite, to be lead out of ignorance. Why? Many of us in finance and investing have moved from suspecting to, knowing, that we are being lied to and manipulated by Government, politicians, the banks, the markets and the MSMedia who have nearly abandoned the '"actual" truth of where we stand as a country.
That this site, and many like-minded others, exists in such profound depth and numbers represents a colossal failure of governance. And we all know it. The MSM are beginning to fear financial blog sites - but not enough. Why? They count on manipulating the masses of the ignorant – the “sheeple.” There are still far too many people ignorant of what has happened and how it happened for true consequences to occur.
And so, a furious financial blog culture of mostly erudite people has exploded on the internet that combines multiple areas of expertise so that we work to reveal the true nature of what reality is from where the lies have left off. We are all in the process of becoming more erudite to save what we have left from this preventable debacle by means of investing or hedging so we do not lose more (and hopefully profit) in a deflationary AND inflationary environment.
However, from all that I read at this site, I would argue we are here for an even deeper reason - searching for any hint of accountability on the part of EVERYONE who caused this immolation of our financial system. The anger is palpable and justified. Currently, we are allowing our country to continue to be subsumed by an increasing debt load that soon will reach 100% of GDP. This WILL be followed by massive dollar deflation, soaring commodity prices and a total debasement of our currency through QE via unquenchable liquidity creation no matter what The Fed says. At that point, many of our best hedging strategies will evaporate and all that will be left are most likely commodities and forex plays. The years 2008-09 will be but a presage of what is to come, the next time will be a truly devastating flood of bankruptcies and market declines. See: 1929-1939.
Some articles have called for accountability. The vital thing missing, in all of these articles and comments, are direct actions we can make to force accountability upon these three groups: those who caused, profited from and failed to prevent this disaster so another even more devastating one does not occur in the future. But wait. Worse still, unabated by the first catastrophe, those three same groups are now creating just that next disaster and we all are standing by blogging, commenting and correctly predicting the next crash just like by-standers at a multiple crash scene. But I don't want to be just right about housing, CRE, option-ARM's, banking, deficits, debt and dollar devaluation etc.
If these three groups are not stopped, we all know what is going to happen. We just don't know how bad it will be and when it will happen. How is it that these groups are still operating with no accountability to us and bailing out nearly every irresponsible person, interest group and company in America at an unconscionable cost to taxpayers? How?!
Easy, they do not fear us. And until they do, nothing will change. No one has been held accountable and so what is there to fear? They know they have all gotten away with "it" - so far. So they are now in the process of inflating another set of bubbles, it's all on the American taxpayer anyway, “they” are all too-big-to-fail - moral hazard has been blasted away. Market Capitalism? Don't insult us with that garbage anymore. They have privatize the gains and socialized the risks, equals no downside.
So really, what is real fear to “them”? Fear is 5 million people marching on Washington and every other city and demanding accountability in such fury politicians actually become really afraid. Fear is “banksters” afraid to walk in and out of their buildings. Fear is forcing accountability with such overwhelming numbers that no one dares back off reforms and punishments. This type of Fear is offering an orderly accountability before social conditions become very, very disorderly. Fear is forcing a two term limit on every politician from county, to city, to state, to Congress in order to decouple the graft and corruption between special interests and politicians. Politics ought to be so difficult that no one would want to stay more than 4 years. Politics should not be an avocation anyone should aspire to nor be allowed to stay in power for 9 - 50 years.
But as it stands now, the financial oligarchy and the corrupt, crony politicians own the show and have now finally melded together to become a true kleptocracy, completely divorced from the consequences to the rest of the country. Def: "Kleptocracies are some other form of autocratic and nepotist government, or lapsed democracies that have transformed into oligarchies. A kleptocratic ruler typically treats his country's treasury as though it were his (their) own personal bank account." Need I say more - Citi, BoA, AIG, FNM. FRM, JPM, GS, WFC, GM, etc?
I love this country very, very deeply and if we do not organize and protest in a manner that creates fear, responsibility, and punishment of those who must be held accountable, then we will get the government that we so richly deserve because we, like Nero, only "fiddled" (blogged) while Rome burned. Anyone who does not believe this country is burning is sorely mislead because that is the job of disinformation courtesy of the bankers, the MSM and the Government. And I contend that "fiddling" while Rome burns will get us nowhere because conspiracy "theories" are all too quickly becoming confirmed as facts. (See back door/closed door/insider actions by: Fed, Treasury, TALF, TGLP, Front running, huddling, hi frequency trading, “stick saves,” GS, SEC, FDIC, FHA, market manipulations and manufactured recovery etc.)
I feel like we are watching a combination of the movie “Brazil” and “V for Vendetta” – both eerie for life now imitating art. And maybe that is crux of the problem. Most of us are just “watching” and “fiddling.” And so I ask, exactly what separates “us” who know what is going on, who read, write and comment on the financial blogs from the “sheeple” we deride? That we are hedged or, in cash or commodities? What happens when the whole system seizes up and collapses? Then what are we? Have we all so quickly forgotten the last year? Remember the panic of last September?
Perhaps we should also – “Remember, Remember the 5th of November.”
MY COMMENT: That number is foreclosure filings not foreclosures, you need three filings to get one foreclosure, some cure some don't, that 350,000 comprises a mix of 1st, 2nd and 3rd Stage filings.
See
seekingalpha.com/artic...
A 3rd category: "short sales" is separate from both of those categories. The only time you see these totals lumped together is in terms of "distressed sales" or "distressed properties".
What I heard from another commentator, but have not been able to confirm (so I haven't used it in any commentary) is that each foreclosure ultimately results in TWO "sales" being registered for a property.
First there is the "deemed disposition" when the bank takes ownership of the property through the foreclosure process, followed by a second sale being registered in the statistics when the banks sells the foreclosed property. If this is true, it would mean that U.S. housing sales statistics are even more warped than I have previously alleged.
If any reader can confirm this one way or the other, I would be obliged.
On Sep 11 03:22 PM djackson wrote:
> I'm not 100% certain, but close. The 80k 'repossession' number you
> say is separate is actually included in the 360k.
I understand there is a distinction between properties which ENTER the foreclosure process, and the "foreclosed properties" which occur at the end of the process.
Having been viewing these monthly reports from MANY different news sources, over many months, I have NEVER seen these reports referred to as properties "entering the foreclosure process".
The statistic is ALWAYS reported as "foreclosed properties" (past tense) or simply "foreclosures". The ONLY time I see/read distinctions being made between the different stages of the process is when people such as yourself are presenting multiple sets of numbers to illustrate distinctions.
Do you have any authority or corroboration for your assertion that the most commonly reported number refers to properties ENTERING rather than exiting the process?
As a matter of logic, the number of properties ENTERING the process is a much less useful statistic - since as you say, a minority of these properties ultimately avoid foreclosure. Thus, the natural assumption is that if only ONE number is reported (as is typically) the case, that it is the FINAL number which is reported.
On Sep 11 05:57 PM Andrew Butter wrote:
> RE: August's numbers have just been released, and though there was
> a small improvement the numbers still represent a continuing catastrophe
> in this sector. Total foreclosures were still above 350,000, and
> project to an annual total of 4.2 million units.
>
> MY COMMENT: That number is foreclosure filings not foreclosures,
> you need three filings to get one foreclosure, some cure some don't,
> that 350,000 comprises a mix of 1st, 2nd and 3rd Stage filings.<br/>
>
> See
>
> seekingalpha.com/artic...
Here is the link to the most-detailed article I could find on U.S. foreclosures for August (as an interesting note NEITHER this Reuters piece, nor the CNN article I referenced even MENTION the exact total): www.reuters.com/articl....
The first sentence reads:
"U.S. mortgage foreclosure filings in August hovered near July's record high despite broad efforts to keep borrowers in their homes..."
If Reuters were only reporting first-time filings, then people would NOT be losing their homes. In that case, Reuters openly line would be factually flawed - since there would be no connection between the number which Reuters was reporting on, and the second half of that sentence about "efforts to keep borrowers in their homes..."
If I am in error in interpreting these statistics, then so is (at least) Reuters' news bureau - if not all the rest of these multi-billion dollar businesses.
On Sep 11 05:34 PM Desertfox44 wrote:
> "Remember, remember the fifth of November
> Gunpowder, treason and plot.
> I see no reason why gunpowder, treason
> Should ever be forgot"... Guy Fawkes Poem
>
> The parable of a further collapse of housing mirrors that of the
> “house” of our country. Fawkes’ warning of the reordering “by other
> means” of the coming Storm writ large - one possible and preventable
> future. Do we have it, in each of us, those who “know” what is happening,
> to collectively prevent this dark future; by holding accountable,
> those who caused this collapse, from not repeating it again? I fear
> the next (preventable, if we act now) collapse will be the last straw
> for any sort of orderly response.
>
> An aside here is important: I assess the quality of Seeking Alpha
> Articles by: author content & facts and, by the measure and erudition
> of the comments it produces - or, does not. "Erudition is the depth,
> polish and breadth that is applied to education from further readings
> and understanding ... The Latin educare means to "lead out" from
> ignorance; hence to think critically and logically. An erudite person
> has both deep and broad familiarity with a subject." Wikipedia <br/>
>
> Mr. Nielson's well-argued article has produced both. Readers and
> writers of Seeking Alpha come for many reasons but, one of the most
> important is to become more erudite, to be lead out of ignorance.
> Why? Many of us in finance and investing have moved from suspecting
> to, knowing, that we are being lied to and manipulated by Government,
> politicians, the banks, the markets and the MSMedia who have nearly
> abandoned the '"actual" truth of where we stand as a country. <br/>
>
> That this site, and many like-minded others, exists in such profound
> depth and numbers represents a colossal failure of governance. And
> we all know it. The MSM are beginning to fear financial blog sites
> - but not enough. Why? They count on manipulating the masses of the
> ignorant – the “sheeple.” There are still far too many people ignorant
> of what has happened and how it happened for true consequences to
> occur.
>
> And so, a furious financial blog culture of mostly erudite people
> has exploded on the internet that combines multiple areas of expertise
> so that we work to reveal the true nature of what reality is from
> where the lies have left off. We are all in the process of becoming
> more erudite to save what we have left from this preventable debacle
> by means of investing or hedging so we do not lose more (and hopefully
> profit) in a deflationary AND inflationary environment.
>
> However, from all that I read at this site, I would argue we are
> here for an even deeper reason - searching for any hint of accountability
> on the part of EVERYONE who caused this immolation of our financial
> system. The anger is palpable and justified. Currently, we are allowing
> our country to continue to be subsumed by an increasing debt load
> that soon will reach 100% of GDP. This WILL be followed by massive
> dollar deflation, soaring commodity prices and a total debasement
> of our currency through QE via unquenchable liquidity creation no
> matter what The Fed says. At that point, many of our best hedging
> strategies will evaporate and all that will be left are most likely
> commodities and forex plays. The years 2008-09 will be but a presage
> of what is to come, the next time will be a truly devastating flood
> of bankruptcies and market declines. See: 1929-1939.
>
> Some articles have called for accountability. The vital thing missing,
> in all of these articles and comments, are direct actions we can
> make to force accountability upon these three groups: those who caused,
> profited from and failed to prevent this disaster so another even
> more devastating one does not occur in the future. But wait. Worse
> still, unabated by the first catastrophe, those three same groups
> are now creating just that next disaster and we all are standing
> by blogging, commenting and correctly predicting the next crash just
> like by-standers at a multiple crash scene. But I don't want to be
> just right about housing, CRE, option-ARM's, banking, deficits, debt
> and dollar devaluation etc.
>
> If these three groups are not stopped, we all know what is going
> to happen. We just don't know how bad it will be and when it will
> happen. How is it that these groups are still operating with no accountability
> to us and bailing out nearly every irresponsible person, interest
> group and company in America at an unconscionable cost to taxpayers?
> How?!
>
> Easy, they do not fear us. And until they do, nothing will change.
> No one has been held accountable and so what is there to fear? They
> know they have all gotten away with "it" - so far. So they are now
> in the process of inflating another set of bubbles, it's all on the
> American taxpayer anyway, “they” are all too-big-to-fail - moral
> hazard has been blasted away. Market Capitalism? Don't insult us
> with that garbage anymore. They have privatize the gains and socialized
> the risks, equals no downside.
>
> So really, what is real fear to “them”? Fear is 5 million people
> marching on Washington and every other city and demanding accountability
> in such fury politicians actually become really afraid. Fear is “banksters”
> afraid to walk in and out of their buildings. Fear is forcing accountability
> with such overwhelming numbers that no one dares back off reforms
> and punishments. This type of Fear is offering an orderly accountability
> before social conditions become very, very disorderly. Fear is forcing
> a two term limit on every politician from county, to city, to state,
> to Congress in order to decouple the graft and corruption between
> special interests and politicians. Politics ought to be so difficult
> that no one would want to stay more than 4 years. Politics should
> not be an avocation anyone should aspire to nor be allowed to stay
> in power for 9 - 50 years.
>
> But as it stands now, the financial oligarchy and the corrupt, crony
> politicians own the show and have now finally melded together to
> become a true kleptocracy, completely divorced from the consequences
> to the rest of the country. Def: "Kleptocracies are some other form
> of autocratic and nepotist government, or lapsed democracies that
> have transformed into oligarchies. A kleptocratic ruler typically
> treats his country's treasury as though it were his (their) own personal
> bank account." Need I say more - Citi, BoA, AIG, FNM. FRM, JPM, GS,
> WFC, GM, etc?
>
> I love this country very, very deeply and if we do not organize and
> protest in a manner that creates fear, responsibility, and punishment
> of those who must be held accountable, then we will get the government
> that we so richly deserve because we, like Nero, only "fiddled" (blogged)
> while Rome burned. Anyone who does not believe this country is burning
> is sorely mislead because that is the job of disinformation courtesy
> of the bankers, the MSM and the Government. And I contend that "fiddling"
> while Rome burns will get us nowhere because conspiracy "theories"
> are all too quickly becoming confirmed as facts. (See back door/closed
> door/insider actions by: Fed, Treasury, TALF, TGLP, Front running,
> huddling, hi frequency trading, “stick saves,” GS, SEC, FDIC, FHA,
> market manipulations and manufactured recovery etc.)
>
> I feel like we are watching a combination of the movie “Brazil” and
> “V for Vendetta” – both eerie for life now imitating art. And maybe
> that is crux of the problem. Most of us are just “watching” and “fiddling.”
> And so I ask, exactly what separates “us” who know what is going
> on, who read, write and comment on the financial blogs from the “sheeple”
> we deride? That we are hedged or, in cash or commodities? What happens
> when the whole system seizes up and collapses? Then what are we?
> Have we all so quickly forgotten the last year? Remember the panic
> of last September?
>
> Perhaps we should also – “Remember, Remember the 5th of November.”
On Sep 13 02:16 AM mlonz wrote:
> There are places in Texas where prices are still below 1980 levels.