timjowers

Fed Facing a 'Money Trap'

The best article I've read on the FED in a while. Ponzi scheme. $30B to a bank but not one dime to mortgage holders. Hmph!

Also, if the US government defaults then who will be first in line to take the government lands? Treasury holders? I think 12% of the land in the USA is claimed by the US government so each dollar does have a real hard asset behind it I think.

1989 Credit Crunch Redux

Nice article. How does offshoring/loss of manufacturing base play into the mix? Were CPI and other government numbers being falsified in the 1980's? The reason I ask is I think now the USA has a culture of dishonesty and this has led to common excesses. E.g. the city we live in (Cary, NC) just bankrolled $20M (or maybe as much as $30M) into an enclosed swimming pool. Anyone with any sense knows it would cost less than $1M to build if they used their own money in this area. Clearly $19M to $29M was embezzled somehow. My point is dishonesty is rampant and the numbers being used throughout business and gubermint have no resemblance to the laws of supply, demand, productivity, and capacity. The snap could be much larger/different than in the past.

No Point in Bottom-Fishing the Homebuilders

Excellent article. The barrier for entry into homebuilding is low. A homebuilder conglomerate has very limited intrinsic value. Not like Intel or AMD for instance. An estimated 1M new homes are needed per year for our current population growth. 2M are presently on the market and the builders are still overbuilding. Oops.

Fed Rates: Bernanke Nails It

LOL. 14% versus the Euro is already hyperinflation. Average housing prices 3.5 to 16 times salary also show hyperinflation. The overnight rate is a decoy: the rate of inflation is actually far higher than reported. This is also why M3 is no longer tracked. Money is being printed from the national treasury at a break-neck pace. The Fed's rates about the market should be taken as a warning. It's called double-speak. The powers-that-be in Real Estate are being handed their heads in Florida and other areas might soon follow. The only solution for the Fed/US Government is to delay the inevitable collapse of the dollar by false gestures like the overnight lending rate.