tag:blogger.com,1999:blog-4921988708619968880.post2668624209448973067..comments2024-02-28T22:03:57.237-05:00Comments on The Automatic Earth: Debt Rattle, July 28 2008: Numb and NumbersIlargihttp://www.blogger.com/profile/09698428009501267664noreply@blogger.comBlogger34125tag:blogger.com,1999:blog-4921988708619968880.post-82499426505175210732008-07-30T16:06:00.000-04:002008-07-30T16:06:00.000-04:00Question - what about the homeowner [i.e. mortgage...Question - what about the homeowner [i.e. mortgage payer] who is currently doing fine. It's likely that their home has also declined in value. They may be able to continue to make their payments, but should they? If they have little equity in the home they should probably walk away. But what about the person who has quite a bit of equity, may not owe much more, but may already have paid more thanAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-74058848067315488552008-07-29T09:55:00.000-04:002008-07-29T09:55:00.000-04:00FF, I don't know where you pulled that quote abo...FF,<BR/> I don't know where you pulled that quote about Merrill from, but I love apparently unintentional 'deluding' in place of 'diluting'. Surely they are delusional about their stock prices and it's not just 20%...!!!EBrownhttps://www.blogger.com/profile/02894676347259218501noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-77441052072361506822008-07-29T09:27:00.000-04:002008-07-29T09:27:00.000-04:00Ilargi and Stoneleigh- I totally love your list of...Ilargi and Stoneleigh- I totally love your list of banks/corporations, their stock prices and percentages of movement; I forward them to a number of people. I know it would be more work; but I'd also like to see two more columns; percent change in the last month; and percent change in the last year. <BR/><BR/>I think that would be even more illuminating. Any hope?<BR/><BR/>And, you might enjoyGreenpahttps://www.blogger.com/profile/17224906349154302210noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-33943138411000655192008-07-29T08:07:00.000-04:002008-07-29T08:07:00.000-04:00TheThirdCoast,About cognitive dissonance…“They dis...TheThirdCoast,<BR/><BR/>About cognitive dissonance…<BR/>“They discovered that the American people were not very excited by the rather sterile concepts of capitalism or free enterprise but that they did exhibit a rather positive emotional response to the notion of "Americanism." From this new information, the corporations devised a formula that tied many fundamental values together: <BR/><BR/>freeAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-39560014184874759382008-07-29T07:46:00.000-04:002008-07-29T07:46:00.000-04:00webjazz,I think one of our biggest problems in the...webjazz,<BR/><BR/><I>I think one of our biggest problems in the U.S. is that we've been raised on cheap oil. That's what has made our lives so easy. And we've squandered all the benefits.</I><BR/><BR/>This points to a much bigger and more general, genetically determined issue than just oil use in the US.<BR/><BR/>The human species, like all other species, will squander all benefits or all Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-20403143262930543822008-07-29T07:24:00.000-04:002008-07-29T07:24:00.000-04:00Mike Shedlock had a thing on bankrate.com.Saturday...Mike Shedlock had a thing on bankrate.com.<BR/><BR/>Saturday, Bankrate had a Safe and Sound rating for First Heritage, which had Friday, the day before, been seized by the FDIC. Not for being safe and sound, which they had not been for a while.<BR/><BR/><A HREF="http://globaleconomicanalysis.blogspot.com/2008/07/dont-count-on-safe-sound-rating-of.html" REL="nofollow">Don't Count On The "Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-38212337392614675692008-07-29T04:36:00.000-04:002008-07-29T04:36:00.000-04:00Regarding the question on checking on your bank's ...Regarding the question on checking on your bank's health, check out the "Safe and Sound" feature on bankrate.com. Apparently, the street.com also rates banks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-63146211500916186372008-07-29T00:33:00.000-04:002008-07-29T00:33:00.000-04:00The question arises,why has j.q.public not reacted...The question arises,why has j.q.public not reacted.Why do they vot for the same rapists they voted for last time...<BR/><BR/> We have the very best propaganda machinery on the plant..24/7.The mainstream media is owned by those whom do not find it in their interest to tell the truth unless carefully shaded<BR/><BR/>Have a question for all who might know..<BR/><BR/> My mortgage is held by a Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-29773610986785767722008-07-29T00:27:00.000-04:002008-07-29T00:27:00.000-04:00Freddie,I would echo what Ilargi said about Canadi...Freddie,<BR/><BR/>I would echo what Ilargi said about Canadian prospects. This crisis is global, and nowhere will really be spared. Canada is following about a year behind the US, but our fall could be much quicker, as appears to be happening in the UK and Spain. Forty year mortgages have been driving the market, but are suddenly no longer available. Combined with the requirement for downpaymentsStoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-45121034836333361122008-07-28T23:28:00.000-04:002008-07-28T23:28:00.000-04:00William,As Ilargi says, insurance companies are no...William,<BR/><BR/>As Ilargi says, insurance companies are no more secure than banks, and that's not very secure at all. Their investments are not going to perform as expected and they will eventually not be able to make promised payouts.<BR/><BR/>We don't see hyperinflation as a risk here at TAE, at least not for a long time. We have to live through a deleveraging credit deflation first, and thatStoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-371535172293204502008-07-28T23:20:00.000-04:002008-07-28T23:20:00.000-04:00ilargi, Excuse me for being unclear. That loss wou...ilargi, <BR/><BR/>Excuse me for being unclear. That loss would be 90% and I hope to add another 20 or more years to my 55, the policy would be paid at my death. <BR/><BR/>I have understood from what I have read here that after about 10 years hyperinflation was expected in the USA. Possibly if as you say the insurance would would be as safe as in a bank it might be better to wait until that Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-40431919388242656392008-07-28T22:51:00.000-04:002008-07-28T22:51:00.000-04:00" And Merrill sold them for $6.7 billion to an aff..." And Merrill sold them for $6.7 billion to an affiliate of Lone Star Funds, the Dallas private equity firm.<BR/><BR/>Merrill provided 75 percent financing to Lone Star Funds, which means Merrill lent the private equity fund about $5 billion to complete the sale. The discounted sales will cause the majority of Merrill’s write-down in the third-quarter."<BR/><BR/><BR/>Looks like an Enronesque scamAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-45523212769068683422008-07-28T22:07:00.000-04:002008-07-28T22:07:00.000-04:00Yeah,"In a major fire sale of toxic assets by...Yeah,<BR/><BR/><I>"In a major fire sale of toxic assets by a struggling investment bank, Merrill Lynch & Co. (MER) said Monday it has agreed to unload $30.6 billion in securities to private equity firm Lone Star at <B>22 cents on the dollar</B>."</I><BR/><BR/>I'll get back to this tomorrow morning, obviously. Those 22 cents could look grossly overvalued soon. Just wait till they <B><I>Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-3397040112500787242008-07-28T21:49:00.000-04:002008-07-28T21:49:00.000-04:00William,There will be no hyperinflation, neither i...William,<BR/><BR/>There will be no hyperinflation, neither in the US nor in Canada. There will be deflation. Read David Rosenberg in the Debt Rattle today, <I>Treasuries seen favored if deflation prevails </I>.<BR/><BR/>As for the policy, it's not clear to me whether you lose 10% or 90%. And you left out the important detail of mentioning how long the insurance has left to run to full pay-out.<BRIlargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-34497955020133648032008-07-28T21:40:00.000-04:002008-07-28T21:40:00.000-04:00"Merril Lynch in cowardly fashion just announced a..."Merril Lynch in cowardly fashion just announced after hours that they have sold over 4 billion dollars worth of preferred stock to an investment company essentially deluding their stock by about 20%. This after WEEKS of denials that they are having liquidity problems.<BR/><BR/>I am putting this in Breaking News because this is serious shit and I don't want it to get missed. I have to question Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-88142472693512857122008-07-28T21:29:00.000-04:002008-07-28T21:29:00.000-04:00what is your take on the Amero theory?That it belo...<I>what is your take on the Amero theory?</I><BR/><BR/>That it belongs with the WTC, and the superhighway and all other things that have been so deformed in the blogopshere that a normal discussion is impossible.<BR/><BR/>As much as blogs, and websites in general, contribute enormously to the effort to fill in the holes in truth finding fabricated by the multi-billion dollar media on the payroll Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-77852147347913554732008-07-28T21:17:00.000-04:002008-07-28T21:17:00.000-04:00Hi,I have a question about hyperinflation that con...Hi,<BR/><BR/>I have a question about hyperinflation that concerns life insurance , I hope someone can give an answer that will help my decision making.<BR/><BR/>We live in Canada and have a paid up full life insurance policy for our child and do not know if we should accept a one tenth cash surrender now rather allow the policy to remain until eventual full payout. This because of what has Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-72593967940911716862008-07-28T21:04:00.000-04:002008-07-28T21:04:00.000-04:00I think one of our biggest problems in the U.S. is...I think one of our biggest problems in the U.S. is that we've been raised on cheap oil. That's what has made our lives so easy. And we've squandered all the benefits.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-60788780158006963002008-07-28T20:51:00.000-04:002008-07-28T20:51:00.000-04:00Ilargi, speaking of 51st state, what is your take ...Ilargi, <BR/><BR/>speaking of 51st state, what is your take on the Amero theory?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-75786133855391011282008-07-28T20:30:00.000-04:002008-07-28T20:30:00.000-04:00FredFree,Mille Grazie for the donation, we truly a...FredFree,<BR/><BR/>Mille Grazie for the donation, we truly appreciate that a lot.<BR/><BR/>As for Canada; it will go down with the US. Perhaps with a slight timelag, but I'm not even sure of that; Canada may catch up with US developments very fast.<BR/><BR/>The announcement by Mark Carney that the Bank of Canada will start buying paper without value from the banks, the sinking housing market (seeIlargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-82875933895145336772008-07-28T20:19:00.000-04:002008-07-28T20:19:00.000-04:00thethirdcoast said:"I'm just tired of the endless ...thethirdcoast said:<BR/><BR/>"I'm just tired of the endless stream of empty prattle about how good and great and perfect this country is.<BR/><BR/>I'm also very tired of how most people unquestioningly buy into it.<BR/><BR/>I guess I'm some kind of elitist."<BR/><BR/>Hmmm, I don't know why you're calling yourself an elitist. That term doesn't seem to me to fit what you've said here. <BR/><BR/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-11554776454661701302008-07-28T19:24:00.000-04:002008-07-28T19:24:00.000-04:00Yeah, essentially.I'm just tired of the endless st...Yeah, essentially.<BR/><BR/>I'm just tired of the endless stream of empty prattle about how good and great and perfect this country is. <BR/><BR/>I'm also very tired of how most people unquestioningly buy into it.<BR/><BR/>I guess I'm some kind of elitist.thethirdcoasthttps://www.blogger.com/profile/02828310354952426682noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-45565276789451529132008-07-28T19:19:00.000-04:002008-07-28T19:19:00.000-04:00lnk fxd thnx lindalnk fxd thnx lindaIlargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-22923883530015760402008-07-28T19:14:00.000-04:002008-07-28T19:14:00.000-04:00thethirdcoast said:"As someone who tries to be inf...thethirdcoast said:<BR/><BR/>"As someone who tries to be informed and take reality as it comes I simply can't seem to maintain the cognitive dissonance required to resolve the extreme disparity between those two poles."<BR/><BR/>Which reality? That we seem to be fast becoming exactly those things most of us say we hate?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-89630486582950632092008-07-28T18:35:00.000-04:002008-07-28T18:35:00.000-04:00Cygnus-Your point #6 really touches on something t...Cygnus-<BR/><BR/>Your point #6 really touches on something that has really bothered me of late.<BR/><BR/>This something is the extreme hypocrisy between the words and deeds of the US. <BR/><BR/>As someone who tries to be informed and take reality as it comes I simply can't seem to maintain the cognitive dissonance required to resolve the extreme disparity between those two poles.<BR/><BR/>Anyone thethirdcoasthttps://www.blogger.com/profile/02828310354952426682noreply@blogger.com