Dragon Master

The Mortgage Crisis: Time for Real Solutions

Some points to Hyman:
<<The govt. should help these people out,>> gov had nothing but collect my money for its giving and now it itself is bankrupt. You basically ask me as taxpayers to give these people free handouts, not gov. If this is your compassion, I can spend all of saving right away if you can wire your cash (IFF you have) via gov into my account.

<<People were just following the American dream>> dream or greed. There are different. American dream is working hard, saving and building future. These guys spend more than they have - greed and lazy.

<<A government's role is to help out its citizens, so now is the time for them to help these people out.>> Why you ask us? IFF you can give them money, go ahead. Keep in mind that gov does not have money. That is our money.

Please, China, Sell Your Treasury Notes!

<<It would be great if they started dumping those Treasuries and buying the bonds of Fannie (FNM) and Freddie (FRE) instead, at least for the time being.>>

China will sell US Treasuries but will buy gold, silver, PM and commodities around the world. They will not touch worthless GSE.

Look at yourself in the mirror and think a second for God sake. 800-1500 years ago when China started trading biz, there are no civilization even on this land.

Central Banks, in Panic Mode, Announce Large Auction

<<new capital>> USA was already bankrupt. Where the "new capital" comes from?

Fed just prints another 200b paper fill the holes by diluting its citizen wealth or around the world.

For a bankrupt gov, the only way to walk out this mess is to inflate numbers by printing more paper. When the house price valued by paper money (not intrinsic value) is being inflated enough not down, then Fed will stop. This is the whole story happening now.

Is Currency Intervention Possible - Or Worth It?

There is common illusion in USA, among most including USA policy makers and FED, that is deflated USD will help export and lower trade deficit. But reality goes other way around.

There are 3 manufaturing countries, also as largest export countries, German, China and Japan.

Since 1980s JPY appreciated from 260 to 80 to 110 per dollar but its trading plus with USD grew every year.

Since EURO appreciated from 0.82 to 1.5 per dollar, German export esp to USA gets increased every year.

Chinese RMB has appreciated from 8.25 to 7.1 for a year+ but trading plus with USA goes up, not decrease.

USA will have bigger trading deficit when USD down since it has lost manufacturing power on one way ticket while import price goes up in term of USD.

UBS: U.S. Bailout for Homeowners Will Arrive by October

If the loss is 1T, it is mainly in hedge funds, leveraged institutions/banking. Why bail them out?

If bailout is the final solution, we need to see these greedy washing out the market first. They created this mess with pockets full and taxpayers shall not pay for them. If they don't die out, they will do again.

5 Reasons Why the U.S. Dollar Will Weaken Further

Most people in USA look at the USD limited in USA. Don't forget:
1) Outside USA, most major eco doing well and not necessary counting on USA consumers as solely export sources. Everyone easily to lean how to spend money when they have.
2) There is more 4 trillion USD held by foreighers. Once USD down the hell, they are dump or they will dump every uptrend. Why not.
3) Nobody will give real assets/resources to USA in exchange of paper. US/Fed prints paper money at 15% rate every year and no reasons stop.
4) USA lost manufacturing with no return. By 2038-2050, USA will have 50% population of black and Hispanics. That can not complete against Japan, German and China. Or you are live in the dream world.