tag:blogger.com,1999:blog-4921988708619968880.post3176588595880523144..comments2024-02-28T22:03:57.237-05:00Comments on The Automatic Earth: Debt Rattle, February 5 2008Ilargihttp://www.blogger.com/profile/09698428009501267664noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-4921988708619968880.post-66108908759107197742008-02-06T10:57:00.000-05:002008-02-06T10:57:00.000-05:00Can someone explain what the TickerForum discussio...Can someone explain what the TickerForum discussion really means. If the Fed will take so many types of dubious assets as collateral, this seems like it would be inflationary - hyper-inflationary eventually. You know, like the pushing on the string might actually work if they can keep things together for long enough to dispel the panic. Does this lead to a dollar collapse? And then what?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-56657104618365985482008-02-05T21:47:00.000-05:002008-02-05T21:47:00.000-05:00I see that Bill Gross has posted his February comm...I see that Bill Gross has posted his February commentary. He's calling for another DEpression, a return to the 30's.<BR/>Thanks for your work ilargi and stonleigh.<BR/>KalpaAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-72834337313067581062008-02-05T19:31:00.000-05:002008-02-05T19:31:00.000-05:00Also remember Buffett bought Gen Re and thought he...Also remember Buffett bought Gen Re and thought he could unwind it's derivatives positions; at least four years later they were still trying.<BR/><BR/>--BigelowAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-8219528129291317012008-02-05T18:34:00.000-05:002008-02-05T18:34:00.000-05:00Stoneleigh and Ilargi,I assume you've seen Mish's ...Stoneleigh and Ilargi,<BR/><BR/>I assume you've seen Mish's latest?<BR/><BR/>http://globaleconomicanalysis.blogspot.com/2008/02/us-service-sector-in-recession-eurozone.html<BR/><BR/>If that's not contraction/deflation then I don't know what is. That's massive, and messy.Greyzonehttps://www.blogger.com/profile/03675706201111951125noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-63302047622975707062008-02-05T17:36:00.000-05:002008-02-05T17:36:00.000-05:00Why is it different?In the Reagan days we had Volc...Why is it different?<BR/><BR/>In the Reagan days we had Volcker who operated on sound principles and created a even playing field.<BR/><BR/>Investors and business, small and large, made good profits based on sound decisions and everyone got rich.<BR/><BR/>With Greenspan and Bernanke we have a private club that operates outside legal principle strictly to protect their own while plundering the VLADhttps://www.blogger.com/profile/07303463697333210934noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-20473709112466924972008-02-05T16:20:00.000-05:002008-02-05T16:20:00.000-05:00Bigelow,Sinclair is one of many who have expressed...Bigelow,<BR/><BR/>Sinclair is one of many who have expressed them selves on the derivatives issue. The Financial Times' Gillian Tett published some good easy-to access-stuff. For instance, why these instruments are so complicated. Turns out, that's on purpose, because they cannot be patented. Good detail.<BR/><BR/>Another detail that often gets overlooked: we need to focus mainly on the nominal Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-13481253199070437532008-02-05T15:43:00.000-05:002008-02-05T15:43:00.000-05:00I am also middle-aged. Why is it worse this time? ...I am also middle-aged. Why is it worse this time? <BR/><BR/>There is about half a Quadrillion dollars of unregulated marked-to-model derivatives underpinning the credit bubble we are all in. There have been credit contractions before, but credit growth has never ever been this big before. Decades of policies discouraging savings means there are few savings and even less cash money. <BR/><BR/>-Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-17450090908871618382008-02-05T14:49:00.000-05:002008-02-05T14:49:00.000-05:00I think the current downturn is viewed as more ser...I think the current downturn is viewed as more serious than those that you site because those recessions took place within an environment that was more sound to begin with. <BR/>What we are seeing today is a massive debt bubble bursting upon a financial environment that is not able to withstand it. <BR/>Were it not for the extreme steps that the central banks and governments have been taking Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-47239554021934413632008-02-05T14:16:00.000-05:002008-02-05T14:16:00.000-05:00i'm a mid-aged resident of california and remember...i'm a mid-aged resident of california and remember the recession during the first half of reagan's initial term and one more starting at the end of his second term and lasting most of bush sr's administration.<BR/><BR/>the first one was described as the worse since the depression and the next downturn was quite severe here in calif.<BR/><BR/>both came to an end and life continued on. <BR/><BR/>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-52958658411607604052008-02-05T14:02:00.000-05:002008-02-05T14:02:00.000-05:00Jim Sinclair(http://www.jsmineset.com/)has been wa...Jim Sinclair<BR/>(http://www.jsmineset.com/)<BR/>has been warning on derivatives a long while:<BR/>“A Review Of World Economies<BR/>Author: Jim Sinclair<BR/>Dear Friends,<BR/>Let us review the key principles as of late:<BR/>• Lower interest rates have no capacity to fix the derivative problem now or in the future.<BR/>• Fiscal stimulation as now suggested would provide $100 billion to the public,Anonymousnoreply@blogger.com