BK GUY

Five Reasons the Market Could Crash This Fall

Say you buy home insurance from Insuracorp; your house burns down; you go to collect on your policy only to find Insuracorp is broke. Does your claim against the insolvent insurer make you whole? Obviously not.


On Aug 04 12:10 PM contracontrarian wrote:

> "If Wall Street did put $50 trillion at risk… and 10% of that money
> goes bad (quite a low estimate given defaults on regulated securities)
> that means $5 trillion in losses: an amount equal to HALF of the
> total US stock market."
>
> Any one particular Wall Street firm can lose everything they have
> or even more,but other Wall Street firms would earn the same amount
> at the same time,as they are on both sides of those derivative positions.
> Alltogether "Wall Street" can not lose money on their derivatives...

Trust - Not Confidence - Is the Issue for Geithner

Trust, honor, responsibility, integrity, confidence. These are all disappearing, and our government is largely to blame.

If Integrity is doing the right thing when NO ONE is watching, it is readily apparent that Geithner has none. So why are we still discussing him for the second or third most important job in America right now?

Predictions for the Coming 'Flation'

There will be inflation down the road. But will it be here in America? Or will it be abroad? Or here and abroad? This remains to be seen. Suppose all that money sitting in the banks is loaned out and invested, not in America, but in China, India, Brazil, etc. My point, in other words, is that while we can predict the creation of another bubble, we cannot predict where or how it will manifest.