tag:blogger.com,1999:blog-4921988708619968880.post2276904664987440860..comments2024-02-28T22:03:57.237-05:00Comments on The Automatic Earth: 1 down, 10.000 to goIlargihttp://www.blogger.com/profile/09698428009501267664noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-4921988708619968880.post-25269169570491799892008-02-29T07:40:00.000-05:002008-02-29T07:40:00.000-05:00You've convinced yourself on your thesis, but I th...You've convinced yourself on your thesis, but I think you're quite wrong that the treasury doesn't produce, and the fed inject newly "printed" money. When the fed accepts as collateral worthless notes with no expectation of repayment, when short term "credit" is offered at below the rate of inflation, free money is distributed to the public for "stimulus", the economy contracts while the major sjnhttps://www.blogger.com/profile/12755222430954182753noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-33379140108453568002008-02-29T05:43:00.000-05:002008-02-29T05:43:00.000-05:00interesting :)interesting :)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-83568158390202665102008-02-28T18:08:00.000-05:002008-02-28T18:08:00.000-05:00Shibbly,The fed doesn't print currency, it midwife...Shibbly,<BR/><BR/>The fed doesn't print currency, it midwifes credit creation by lowering the cost of money in order to make borrowing and lending an attractive proposition. Unfortunately, that 'solution' (which is akin to trying to cure a hangover by having a few more drinks) requires willing borrowers and lenders. As we have seen from the various credit markets drying up, willing lenders are inStoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-29588312472689357442008-02-28T14:43:00.000-05:002008-02-28T14:43:00.000-05:00Illargi,You stated that the fed would notinject th...Illargi,<BR/>You stated that the fed would not<BR/>inject the wheelbarrows of cash/credit needed. Why is this not in their best interest?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-72523308472242662792008-02-28T12:44:00.000-05:002008-02-28T12:44:00.000-05:00shibblyUS residential real estate is down some $2 ...shibbly<BR/><BR/>US residential real estate is down some $2 trillion, derivatives are down a multiple of that. World markets are estimated to have lost over $10 trillion. US Banks have lost and written down $200 billion, which takes at the very least an additional $2 trillion of credit space away. Total Wall Street losses are estimated to top $1 trillion in the next few years. That is $10 Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-79584647897991613432008-02-28T12:39:00.000-05:002008-02-28T12:39:00.000-05:00Thank you for posting this. I have a friend who o...Thank you for posting this. I have a friend who owns a house in Vallejo, CA. They were just assessed another $2000 in property taxes. (on top of what they already just paid) The police sent out a mass mailing asking for $100 donations so they can afford to buy a new cruiser. It's pathetic. According to the Vallejo friend, down the street, $750,000 (last year)townhome just sold for $300,000.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-30685610876185643302008-02-28T11:45:00.000-05:002008-02-28T11:45:00.000-05:00Stoneleigh, Illargi,How do I convince family that ...Stoneleigh, Illargi,<BR/><BR/>How do I convince family that we are actually moving to deflation now? When I mention that credit and financial assets are vanishing faster than the money supply is increasing, the response is that helicopter Ben will provide the iquidity/credit/cash as needed. The housing market will correct downwards since it is overpriced, but the fed will inject as needed to Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-72496335072548850422008-02-28T10:29:00.000-05:002008-02-28T10:29:00.000-05:00This sort of thing is why I disagree with Warren B...This sort of thing is why I disagree with Warren Buffet that munibond insurance is a good business to be in right now. It may have been a good business, and so have a good existing track record, but the housing bust, and consequent loss of tax revenue, will hit municipalities very hard. Labour unions are not likely to want to play ball, however unaffordable their benefits become.<BR/><BR/>In Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-57457229174830630632008-02-28T09:39:00.000-05:002008-02-28T09:39:00.000-05:00California City Moves Closer to Bankruptcy Filing ...<I>California City Moves Closer to Bankruptcy Filing </I><BR/><BR/>No insurance!?Anonymousnoreply@blogger.com