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| Originally Posted by brian eiland A good friend and myself have been forecasting this 'perfect storm brewing' for better than a year now. We just continued to not understand why it didn't happen earlier...probably because of all of the money being thrown at our US economy by the HUGE warspending. But wait a minute, where is that borrowed money coming from???...out of thin air like the rest of Bush's spending spree.
And the stock market guys gave themselves another bunch of HUGE bonuses again this year....what a great bunch of farsighted fellows up there in New York. Maybe a few of those crooks will jump.... |
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| Originally Posted by Loren Schweizer There is a tiny possibility that the U.S. will experience a nasty little 2008 recession, early '70s vintage.
Europe feels it, too.
China's Shanghai Index, recently on a real tear, takes a deep dive.
Same for India's over-bought Sensex.
Result: sub-$75 USD oil.
Remember the Asian monetary crisis less than ten years ago?
Fearless prediction: gas in the two-buck range in the U.S. as a Christmas present this year, with folks laughing at all the Prius drivers.
Put this in your time capsule. Whoever gets closest (I bet $2.09) wins a prize. |
"Nasty little recession", I would only hope so, but as I wrote back in posting #75
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The Perfect Storm (economically)
So does that mean we should treat it as just another little unconsequential blip, and nothing too serious, as does the majority of this Washington crowd that continues to drink the same kool-aid??
We have the gathering of the 'perfect storm' with big energy price increases, housing market failure, lost of manufacturing, and the coming lost of a great portion of creative IT. We need to get some different kool-aid to drink.
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Today I wrote some friends and disbelivers;
Recession or Depression
Can these words even be used, particular the ‘D’ word??
I've received a few emails lately that speak about the scary prospect that the Democrats coming into power will mean a rise in taxes….heaven forbid the Republicans warn!!
Maybe somebody here in Washington DC took a gulp of reality, rather than continuing to drink this same old kool-aide that Bush & Co have been passing around for the past 7 years.
How long can we continue this reckless spending without raising some taxes to help pay for it?
If America really wants to continue this foolishness in Iraq, we are going to have to step up to the big table and pay for it.
Lets see, just in the last 3-4 weeks alone, Bush & co have committed;
1) a $150 Billion dollar economic stimulus package, *
2) a $170-200 Billion dollar mortgage bank bailout, **
3) an undisclosed bailout for Bear-Stearns (rumored at $80 Billion plus)***
That’s $410 billion plus dollars. Where is this money coming from…out of thin air?? No, likely out of our future, and our kid’s future. And added to these sums are the soon to be voted on the latest Iraq ‘supplemental’ of $105 Billion, and the looming Medicare crises, etc,etc.
Now add in the latest news that Bear-Stearns is suddenly facing a ‘liquidity crises’ that only last week we were formally told was no problem This is one of the largest global investment banks and securities trading and brokerage firms in the world (seventh largest securities firms in total capital). It had to come to the Fed government for an immediate loan rumored to be in excess of $80 Billion to avoid bankruptcy. THIS IS BEGINNING TO SOUND LIKE ENTRY INTO A DEPRESSION rather than just recession. And now the Chinese bank that was going to invest a few Billion into Bear Stearns is reconsidering!!
I’m sure Bush & friends are going to find lots of reasons for our economic problems, and certainly none of those are a result of their policies. Lets see, if he can delay this long enough he may be able to escape down to Texas and sit there and blame the whole mess on the Democrats. But let me remind you who has been in control of ALL of the branches of government for the past 7 years….the Republican party, that grand old party.
And how about this question of oil prices. I’m sure that will be to blame as well. Lets see, why are oil prices so high?? Certainly there is the element of global competition for energy supplies, but I think if you really did your homework you would find that the primary reason they are so high right now is THE UNCERTAINITY of supply. Our foolish invasion of Iraq is why oil prices are where they are now. And who lied to lead us into this mess. Bush, and Cheney, and company.
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***A Bear Stears Market
By James Grant
Sunday, March 16, 2008; B07
…excerpt….What makes these proceedings so frightening is that not only is credit in crisis but so, too, is money. There are well-founded doubts about the promises to pay money and about the nature and integrity of the dollar itself. So it was on Friday that the Frederal Reserve committed to lend undisclosed billions to bail out Bear Stearns, a top Wall Street purveyor of mortgage-backed securities and a leading lender to hedge funds. Where will the Fed find these dollars? Where it always, ultimately, does. It will have to print them, despite abundant evidence from the currency and gold markets that the world has just about all the dollar bills it cares to hold.
http://www.washingtonpost.com/wp-dyn...403318_pf.html