tag:blogger.com,1999:blog-4921988708619968880.post7379844086795814126..comments2024-02-28T22:03:57.237-05:00Comments on The Automatic Earth: Debt Rattle, June 24 2008: The rise in gas prices is a jokeIlargihttp://www.blogger.com/profile/09698428009501267664noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-4921988708619968880.post-74791897106411633162008-06-25T11:23:00.000-04:002008-06-25T11:23:00.000-04:00It may seem smart to say that $200 billion is 6% o...It may seem smart to say that $200 billion is 6% of $3 trillion, and that that seems to correspond with some sort of interest rate.<BR/><BR/>Still, while we're playing with numbers, it's equally smart to say that it's high time people should start to realize that for every gallon of gasoline a US citizen pumps, and for which (s)he pays an extra $1, which can be seen as a "loss", someone close to Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-65604050582694212852008-06-25T08:39:00.000-04:002008-06-25T08:39:00.000-04:00The one whose name or tag must not be mentioned wr...The one whose name or tag must not be mentioned wrote:<BR/><BR/>"No, it's no joke. 200 billion is 6.6% of 3 trillion. 200 billion in cold hard cash every year could pay for the interest on the 3 trillion in paper losses/capital adjustments."<BR/><BR/>This country has not seen "cold, hard cash" in many. many decades. However, paying interest on the national debt does bring up the question of why Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-33751332863865861112008-06-24T22:35:00.000-04:002008-06-24T22:35:00.000-04:00you wrote:"200 million US drivers have paid some $...you wrote:<BR/><BR/>"200 million US drivers have paid some $200 billion extra for gas, while values for the 100 million US homes have fallen by $3 trillion. .... The rise in gas prices so far is a joke compared to what’s happening in finance."<BR/><BR/>No, it's no joke. 200 billion is 6.6% of 3 trillion. 200 billion in cold hard cash every year could pay for the interest on the 3 trillion in Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-90204957854902295262008-06-24T19:56:00.000-04:002008-06-24T19:56:00.000-04:00terrythanks for the poemI had to look at the under...terry<BR/><BR/>thanks for the poem<BR/><BR/>I had to look at the underwater situation; so many numbers fly by every day. Here’s something that looks familiar to me, much worse than you -and certainly I- would think.<BR/><BR/>In late February, Jonathan Nelson, CEO of Providence Equity Partners, a private equity giant, <A HREF="http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/02/26/Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-60373247755175317562008-06-24T19:13:00.000-04:002008-06-24T19:13:00.000-04:00ah, anon, that's a different, much more complex qu...ah, anon, that's a different, much more complex question. All roads seem to lead back to the taxpayer's back, to increasing the burden. Crazy making for the homeowner to pay the mortgage and then pay for it again through taxation if it gets picked up by a gov't bureau!scandiahttps://www.blogger.com/profile/07924260428840006237noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-46914284344042807172008-06-24T16:16:00.000-04:002008-06-24T16:16:00.000-04:00I've learned a lot from this site and I check it d...I've learned a lot from this site and I check it daily but I did want to make one observation. While the housing market might be tanking in parts of the country, it's not uniform. Here in Louisville, while home sales are certainly down, the selling prices have stayed strong. We of course never saw the huge and silly increases that many saw so I suppose that has to come into play. <BR/><BR/>AnKellyhttps://www.blogger.com/profile/03175693033024112251noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-24389508517973242962008-06-24T15:24:00.000-04:002008-06-24T15:24:00.000-04:00ilargi, enjoy this siteand your comments;re the di...ilargi, enjoy this siteand your comments;<BR/>re the disappearing wealth: i bought my condo for $105K 5 yrs ago; 2006 it was worth 300K, now worth 200K; have I lost 100K or made 100K? reality is neither as i have no intention of selling; but it might be correct to say i donʻt feel as wealthy as i did 2 yrs ago, but better off than 5 yrs ago. So the real ? is how many of the 100M homeowner people Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-44040605360843952412008-06-24T15:05:00.000-04:002008-06-24T15:05:00.000-04:00anon (a name/pseudonym is much handier)I don't kno...anon (a name/pseudonym is much handier)<BR/><BR/>I don't know al the ins and outs in the US, but I'd think mortgages held by banks and other lenders will, in case the firm is not sold, probably be handled by the FDIC the FHA, or perhaps even another government bureau. The most logical procedure would be to sell them, as one or more bundles, to the highest bidder. That could well be one of the Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-72687864841372237142008-06-24T14:32:00.001-04:002008-06-24T14:32:00.001-04:00Thanks again for this site. You have most certain...Thanks again for this site. You have most certainly helped me and my wife take our preparations forward a notch. Though we are still woefully unprepared for another big step down we are far more prepared than we otherwise would have been. <BR/><BR/>I'm putting a little something in the tip jar. I typically like to donate anonymously, but I think it is also important to remind people to supportEBrownhttps://www.blogger.com/profile/02894676347259218501noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-69604773620938333462008-06-24T14:32:00.000-04:002008-06-24T14:32:00.000-04:00Scandia,Thanks for the answer, I guess maybe I'll ...Scandia,<BR/><BR/>Thanks for the answer, I guess maybe I'll try to rephrase my question.<BR/><BR/>In normal times, banks fail. I am assuming that in normal times, even if someone doesn't want to buy out the bank, there are probably people who are willing to buy out the banks loan portfolio (most likely for a great deal less than it's worth). Then, the lender that purchased the mortgages informs Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-43207534896404717572008-06-24T13:46:00.000-04:002008-06-24T13:46:00.000-04:00anon, off the top of my head the bank would have c...anon, off the top of my head the bank would have creditors wanting to recoup, recoup on your mortgage for instance?scandiahttps://www.blogger.com/profile/07924260428840006237noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-56406260906225675782008-06-24T13:21:00.000-04:002008-06-24T13:21:00.000-04:00The debt bubble was going to keep going until they...The debt bubble was going to keep going until they ran out of people willing & able to take on more debt. That they were making so many loans to "sub-prime" borrowers is indicative that they were running out. If the bubble had gone on much longer, they would have been making loans to homeless people (who needs a house more?). Having said that, I think it is possible that rising oil prices moved Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-63070968532467543662008-06-24T13:09:00.000-04:002008-06-24T13:09:00.000-04:00I have what might be a silly question, but I'm ask...I have what might be a silly question, but I'm asking anyway. What happens to the mortgage liens when a bank fails and no one buys it out? I understand that if a bank is bought out, the liens become the property of the purchasing bank and the mortgage holders make their payments to the new bank. But, what if no one wants to pick up the mortgages of a failed bank? <BR/><BR/>BTW - thanks for the Anonymousnoreply@blogger.com