normthefedup

The Coming Economic Collapse, Part 2

Graham, yuo're getting pummelled this morning and - for once - I do not think you deserve it. I KNOW you're figures are distorted and for the basis of proving your points, they need to be to some extent. BUT..your observations as to how we got here are right on the money, the consequences of our past are right on the money, and while I do not believe a collapse is coming, at least not right away, it's quite obvious that the bad habits of the past are going to crush us. I'm a senior citizen that needed to go back to work after losing half of my IRA in the current mess. I'm recovering but will never get it all back. That aside, the inflation that we're going to see as a result of ALL the governments in the world printing money and throwing it at this disaster we're living through not to mention the increase in interest rates as we run out of buyers for our treasuries, is going to make the Carter years look like a birthday party. Looking forward to part three.

We're Due for a Serious Pullback

EVERYTHING is different this time....let's just call the bazillion dollars that every government in the world is throwing at this mere pocket change and forget it ever happened....

God almighty, will you doom-sayers EVER give it a rest??? Let the markets do what they do best...adjust to conditions...and level out at the appropriate rate. Dow 14000 in 2010? Nah...2012...maybe....

As Goes GM, So Goes the Country

Author, you're a genius. E pluribus unum. Kudos. The fact that I don't like what's happening doesn't change the fact that it IS happening. We are witnessing the rapid downfall of America and that is tragic. In 50 years, we'll be the next United Kingdom. Just another second rate power. I am fortunate that I will not see it finally happen. Well said.

Be Prepared for S&P to Hit 350 by June 2010

I have really mixed emotions over this one. Based strictly on the title, I was loaded up to blast the author but, while I don't necessarily agree with his doomsday scenario, this is a small indication of what's happening in the credit market. And while Advanta goes away, it doesn't necessarily portend the doom of the entire credit industry any more than WAMU or Countrywide going away stopped or killed every other mortgage provider in the country. You just need to go somewhere else to get your credit card, or mortgage, or car loan, or whatever. I have been in finance and credit for my entire 40 year career. I've never seen anything like this and except for really senior citizens who saw the depression, none of us have. It's bad but we're not dead. I'm going to save this article until your projected doomsday one year away and either going to shove it up your nose or cry at your side. Hope it's the former. Let's see what happens. Good luck to us all.

Why AIG Needs to Go into Prepackaged Bankruptcy

Will your prepackaged bankruptcy give me and my fellow Americans back our $180 billion? No. We have, unfortunately, rolled the dice on this and now we've got to let the bet ride. You and your ilk need to STOP PLANTING THE SEEDS OF DISSENT AND DISCONTENT.

Break Up the Big Banks

So Avery, what you're saying is that it's NOT ok for the government to bail out the banks (and let's not forget that in most cases they took common stock from which if sold, the government will make an ENORMOUS profit) , it's NOT ok for them to pay back the loans, it's NOT ok to get out from under the government's thumb, but it IS ok for the government to still have enough control to break them up. On what premise? A decree from the Pharaoh? So let it be written, so let it be done?

It's Time Banks Broke Up and Moved On

...and here we go again....do you know Felix Salmon by any chance?

Financial Stocks Are Ready for Their Pullback

Interesting concept, author. However, in your perpetual moaning about the dilemma that banks, credit card agencies et al find themselves "trapped" in, you keep harping on the "US consumer." If they are, indeed, making money in other areas of the world, doesn't that profit drop into the same pot as the supposed horrendous losses in the US? Don't ALL companies at one time or another, experience losses at one division while making money at another and, overall, have a good corporate profit performance? You cannot emphasize US losses without looking at the overall picture. US oil consumption is down....OK....but China is picking up. Consequently, the price of oil broke $54 a barrel this morning. According to your philosophy, oil should be about $10 a barrel because the US demand is down. Look at the big picture and wake up.

Why the U.S. Prefers Quasi-Nationalization of Big Banks

Do you realize the incredible damage that full nationalization of major banks would have on the thousands of retirement funds in this country? Or the complete panic that would result in the stock market not to mention the run on banks that unknowing citizenry would almost certainly do? Articles like this one simply prolong the agony.

Credit Rating Reform No Substitute for Investor Vigilance

Ravi, outstanding article and it's about time that they've (Moody's et al) are taken to task. They ruined us. Granted, the investor is the ultimate decision-maker when it comes to investing one's own money. But bear in mind, that most investors, do not have the slightest idea how to read a balance sheet, or p&l statement, or how to analyze an entity's cash flow and the resultant ramifications. They see Fannie Mae rated AAA with "the implicit backing of the Federal Government" and AIG-like entities and companies whose names they recognize also with AAA ratings and they plunk down their money. And lose it. These guys (the ratings agencies) are RESPONSIBLE FOR THE LOSS OF TRILLIONS OF DOLLARS OF AMERICAS WEALTH AND SECURITY. We continue to chastise the Rick Wagoners and the John Thains of the world but do any of us know the names of the executives at Moody's, or S&P? Nah. And they've caused INFINITELY more damage than the aforementioned "villains." Now, they seem to have developed a conscience. Sure.....downgrade Citi and GE at a time when their "honesty" can cause even MORE carnage. As far as I'm concerned, their "rubber stamp" or I should say their PAID FOR rubber stamp on all the garbage investments that brought down the entire world should be evidence enough that these people should be charged with criminal negligence. Thank goodness that the days of mobs and drawn and quarter punishment are over. Or maybe not. Thanks, again. Great, great job.

Let's Hurt the American Financial Services Industry

Felix: why don't you vent your venom at the ratings agencies? S&P, Moody's, et al? These useless bastards sold us ALL down the river. Including the bloated banks that your contend caused this problem. I tend to think of myself as a "savvy investor" and I bought Fannie preferreds last March. All based on the "implied backing of the US government and that all-powerful AAA rating." These a**holes have in truth missed the carnage that THEY caused. AAA ratings BOUGHT with monies paid to the rating agencies who prostituted themselves to the entities that invented the garbage that has cost us all so dearly. You're beating the wrong VICTIM here. You have plenty of venom to spew, son. Spew SOME of it in the direction it should be spewed.

Banks Are Not Reaching Bottom - Meredith Whitney

Listen all...Meredith (she) recently left Morgan Stanley and started her own consulting "thing." The more noise she makes, the more money she makes. Ms. (that's female) Whitney, my humble opinion? You got lucky on the predictions and you're just riding the wave. Put it to bed because too many people take what you say as gospel. And too many doom and gloom specialists have a habit of shoving their opinions down to many ignornant people's throats to the extent that their "predicitons" become self-fulfilling prophesies. You and your ilk need to give it a rest and, as you all recommend, "let the market take care of itself." Translation: shut the hell up.

Pullback Time? There's No Better Predictor than Credit Spreads

Jesus....Jim - and please, this is not a criticism - this is scary stuff. Great article. I actually learned something. Thanks.

A Cool $200 Billion for Bank of America?

I think it's inappropriate for anyone to do THIS much speculating about an entity that is so integral to the financial markets in this country. Especially at a time when the market is so fragile. More facts, less conjecture from all parties will lead to less uncertainty and this mess will end that much quicker. Good piece author, but too big a guessing game for all of us at this time.

The AIG Death Star

Outstanding Mark, simply outstanding. Talk about your pennywise and pound foolish..................