Warm_Paw

If a Bubble Bubble Bursts Off the Balance Sheet, Will Anyone Be There to Hear It?

I applaud the writers at Seeking Alpha for actually informing the public of the real issues confronting America. I'm surprised you have not been censored or your web site infected.
I doubt the powers that be wish to discuss the truth until the American public has taken these toxic assets off the banks books.
The FASB accounting rules are allowing the suspension of mark to market accounting until March 2010.
Jan 2010 is the next tidal wave of Option A loans and I doubt the Fed has another 700 Billion to deal with this wave.
Whoever thinks the recession is over may be correct in that the world may need to consume at a marginally higher rate, but the money and employment isn't there. The world will starve at a higher rate. The dollar falling apart may bring employment to America but only if textile mills and manufacturing return to the USA.
The bottom line - America, with unionized wages could afford big ticket items. Then manufacturing was offshored to China, India and Mexico for workers earning $2 a day. America lived on it's line of credit and home equity loan (second mortgage).
We import everything cheaper than we can produce it.
Now that we're broke - $2 a day workers are getting layoff notices.
All the big money Wall St. crooks reinvested the wealth amassed in shady back room deals and the resulting destruction has wiped out their profit. Now we're unemployed and can't live off the profits of the shady investing practices.
Bundling MBS's that weren't AAA grade and stamping them AAA has caused huge systemic chaos to the financial system.
I've heard the bundling and writing CDS's for these MBS's was legal.
There's a law which would deal with what has occurred.
Everyone involved should be charged with treason...

CDS Curves Moving to Pre-Crisis 'Normal'

Hey
I'll be so happy to get back into Credit Default Swaps.
I know how safe I am now that the Fed is the ultimate insurer.
I can't lose.
I could speculate in pure garbage and the taxpayer will expense my stupidity.
Problem is, I'm not sure if the insurance companies are going to be around long enough for the govt to continue bailing out.
If that wasn't an issue - hey CDS' are a great investment!!!