tag:blogger.com,1999:blog-4921988708619968880.post8773038221287072680..comments2024-02-28T22:03:57.237-05:00Comments on The Automatic Earth: Debt Rattle, October 22 2008: ShellingIlargihttp://www.blogger.com/profile/09698428009501267664noreply@blogger.comBlogger66125tag:blogger.com,1999:blog-4921988708619968880.post-71606618362295171882008-10-23T14:46:00.000-04:002008-10-23T14:46:00.000-04:00Anon,If lenders/servicers can't prove ownership of...Anon,<BR/><BR/><I>If lenders/servicers can't prove ownership of the mortgage note how can they recall the loan? Challenging the lender in court to produce the original note has shown some success in court. Worth a try?</I><BR/><BR/>It's worth a try, but the odds aren't great.Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-54270266254961169392008-10-23T14:44:00.000-04:002008-10-23T14:44:00.000-04:00Greg,This sets off another vicious cycle. As price...Greg,<BR/><BR/><I>This sets off another vicious cycle. As prices fall, the interest rates Uncle Sam must pay rise. The higher interest rates rise, the more the US must pay... which makes bond traders mark down the country's credit rating. This sends bond prices even lower...<BR/><BR/>If the trend grows, we'll see a biblical collapse in the Treasury bond market.</I><BR/><BR/>I'm particularly Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-72527156820346161382008-10-23T14:39:00.000-04:002008-10-23T14:39:00.000-04:00Re: divergence of paper and physical gold pricesI ...Re: divergence of paper and physical gold prices<BR/><BR/>I think the prices are diverging because lots of little folks are trying to get their hands on something tangible while large institutional players are selling their gold positions to raise cash.<BR/><BR/>I am wondering about getting the physical gold at the market price by buying gold futures and then actually taking delivery. It looks team10timhttps://www.blogger.com/profile/12100467801841348435noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-43169285874088533002008-10-23T14:23:00.000-04:002008-10-23T14:23:00.000-04:00@ HangedmanThe Paul Burkett who co-authored the Ja...@ Hangedman<BR/>The Paul Burkett who co-authored the Japan Fiscal Crisis peice you cited lives in our town, and occasionally goes to our congregation with his wife.<BR/><BR/>-Brian M.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-69045715272150616922008-10-23T14:05:00.000-04:002008-10-23T14:05:00.000-04:00Stoneleigh,If lenders/servicers can't prove owners...Stoneleigh,<BR/><BR/>If lenders/servicers can't prove ownership of the mortgage note how can they recall the loan? Challenging the lender in court to produce the original note has shown some success in court. Worth a try?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-48114552573410484852008-10-23T13:46:00.000-04:002008-10-23T13:46:00.000-04:00...Treasury bonds are perfect for dumping. They ar......<BR/><BR/>Treasury bonds are perfect for dumping. They are liquid, so investors can sell them easily. And they have high prices. Unlike my friend's bank stocks, you can generate lots of purchasing power by selling them.<BR/><BR/>My concern is, if this credit crisis gets worse, it's going to trigger even bigger whales to liquidate their Treasury bond holdings... whales like the Chinese, the Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-65982119097009656762008-10-23T13:09:00.001-04:002008-10-23T13:09:00.001-04:00oops, the linkhttp://www.pbs.org/newshour/bb/busin...oops, the link<BR/>http://www.pbs.org/newshour/bb/business/july-dec08/psolman_10-21.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-2509658568219460312008-10-23T13:09:00.000-04:002008-10-23T13:09:00.000-04:00this is an interesting dialog between Economist Na...this is an interesting dialog between Economist Nassim Nicholas Taleb and his mentor, mathematician Benoit Mandelbrot, as they speak with Paul Solman about chain reactions and predicting the financial crisis.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-64057529712152640232008-10-23T12:37:00.000-04:002008-10-23T12:37:00.000-04:00More Conjuring:Oct 21: "...A central clearing...More Conjuring:<BR/><BR/>Oct 21: "...A central clearinghouse for credit-default swap trading may open November after pressure from the U.S. Federal Reserve for a means to absorb losses should a market maker fail, according to Barclays Capital strategists. A CDS contract is traded over the counter between to parties without strict margin requirements--> $54 trillion CDS market introduces Danhttps://www.blogger.com/profile/02629934080871994373noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-22734537843793144942008-10-23T12:26:00.000-04:002008-10-23T12:26:00.000-04:00Stoneleigh,You indicated that there will be a rall...Stoneleigh,<BR/>You indicated that there will be a rally some time in Nov. which could possibly last a couple of months.<BR/>I am having trouble wrapping my head around this concept. The information that I am reading here and what I am hearing in the news is quite dismal and frightening. It is going to take a couple of weeks to get my mutual funds over to the bank, and so I'm not sure if I Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-70693571204478636542008-10-23T12:20:00.000-04:002008-10-23T12:20:00.000-04:00Thanks for yesterday's Denninger link, CrystalRadi...Thanks for yesterday's Denninger link, CrystalRadio.<BR/><BR/>"We may be literally days away from a second, far more serious credit and equity market dislocation, this time originating outside the United States."<BR/><BR/>Wonder where. I was thinking, possibly, the flight of western capital from Russian equities could trigger a large run on the banks in Russia, which would then spread contagion Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-69664843987902568612008-10-23T12:13:00.000-04:002008-10-23T12:13:00.000-04:00"Roubini Says 'Panic' May Force Market Shutdown"ht..."Roubini Says 'Panic' May Force Market Shutdown"<BR/><BR/>http://tinyurl.com/5ettlb<BR/><BR/>He says many hedge funds will go belly up and the resulting market panic will force the gov to close them, like russia did a few weeks ago.Unknownhttps://www.blogger.com/profile/16632600430004147895noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-44561780087855339142008-10-23T11:56:00.000-04:002008-10-23T11:56:00.000-04:00Thanks Stoneleigh. My house is paid for, but my tw...Thanks Stoneleigh. My house is paid for, but my two thirty-something kids have houses with low fixed-rate mortgage. Unfortunately, neither understands the deflation nightmare about to befall us.bluebirdhttps://www.blogger.com/profile/09600634086150466162noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-22382025229259277192008-10-23T11:44:00.000-04:002008-10-23T11:44:00.000-04:00"... Rumor has it that there is a widening spread ..."... Rumor has it that there is a widening spread between the price of 'paper' gold and physical gold, in effect a manipulation to get those who hold gold as an investment to sell out on 'dropping gold prices'..."<BR/><BR/>Everyone can easily verify by contacting those who actually use gold ... jewelry stores ... where are they getting it from and at what price.<BR/>Also, contact the banks and Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-35186297121949830262008-10-23T11:43:00.000-04:002008-10-23T11:43:00.000-04:00Bluebird,Does this mean, if I have a low fixed-rat...Bluebird,<BR/><BR/><I>Does this mean, if I have a low fixed-rate mortgage, that the government can increase the rate? Or rather that the value of the house declines so much that I am paying the same monthly payment with same low rate, on a basically worthless house?</I><BR/><BR/>I'm not convinced that fixed-rate mortgages will actually stay fixed-rate. Even if they do, the income needed to make Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-85912880912316959062008-10-23T11:08:00.000-04:002008-10-23T11:08:00.000-04:00@ CrystalRadioBRILLIANT!! LMAO!!!"Riddles in the D...@ CrystalRadio<BR/><BR/>BRILLIANT!! LMAO!!!<BR/><BR/>"Riddles in the Dark"<BR/><BR/>:)Danhttps://www.blogger.com/profile/02629934080871994373noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-66261442220778192632008-10-23T10:56:00.000-04:002008-10-23T10:56:00.000-04:00Greenspan was on CNN saying that very thing that t...Greenspan was on CNN saying that very thing that the Fed and treasury need to "tie sovereign debt to the commercial credit markets to the greatest extent possible "<BR/><BR/>The only thing lacking in th speech were the words "<A HREF="http://www.google.ca/imgres?imgurl=http://foreverloyal.files.wordpress.com/2008/01/gollum.jpg&imgrefurl=http://foreverloyal.wordpress.com/2008/01/02/pathetic/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-86329412665375444112008-10-23T10:49:00.000-04:002008-10-23T10:49:00.000-04:00Stoneleigh says "There is no safe level of debt, a...Stoneleigh says "There is no safe level of debt, and if you owe that debt on an asset that will be illiquid (ie especially real estate), by the time you find you can't cover the debt anymore, it will be far too late to sell the asset."<BR/><BR/>Does this mean, if I have a low fixed-rate mortgage, that the government can increase the rate? Or rather that the value of the house declines so much bluebirdhttps://www.blogger.com/profile/09600634086150466162noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-5645953756824302302008-10-23T10:35:00.000-04:002008-10-23T10:35:00.000-04:00Pardon, the prices I quoted are in USDPardon, the prices I quoted are in USDAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-12816721896911246342008-10-23T10:34:00.000-04:002008-10-23T10:34:00.000-04:00Can someone comment on the price of gold right now...Can someone comment on the price of gold right now? Spot gold is at ~710, and has been dropping for several days now. Rumor has it that there is a widening spread between the price of 'paper' gold and physical gold, in effect a manipulation to get those who hold gold as an investment to sell out on 'dropping gold prices'.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-2094353310205427262008-10-23T10:33:00.000-04:002008-10-23T10:33:00.000-04:00Dan says "keep to themselves for a few years". Yes...Dan says "keep to themselves for a few years". Yes, that is so, but this bubble is so big, globally, that eventually, the bubble will burst them too.bluebirdhttps://www.blogger.com/profile/09600634086150466162noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-80519283003542215122008-10-23T10:17:00.000-04:002008-10-23T10:17:00.000-04:00Denninger (in his Cat 5 warning piece):Ben and Han...Denninger (in his Cat 5 warning piece):<BR/><BR/><I>Ben and Hank produced a dislocation in this section of the marketplace by favoring other debt instruments with federal guarantees, thereby forcing money out of these instruments. <BR/><BR/>This in turn created major problems for money market funds who buy this paper as a routine matter of course in that when they needed to redeem deposits they Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-5105022058808106982008-10-23T10:04:00.000-04:002008-10-23T10:04:00.000-04:00@ BB and DJThe concept of a President telling the ...@ BB and DJ<BR/><BR/>The concept of a President telling the truth makes me chuckle. Political leaders are about as capable of being honest as Waiters in a restaurant are about telling patrons how "clean" the kitchen is.Danhttps://www.blogger.com/profile/02629934080871994373noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-86619691505309853792008-10-23T10:01:00.000-04:002008-10-23T10:01:00.000-04:00@ Bluebird:RE: "Hank and Ben 'losing'"NO! No no no...@ Bluebird:<BR/><BR/>RE: "Hank and Ben 'losing'"<BR/><BR/>NO! No no no. The ones who will "win" are the ones who can survive the mayhem without having to interact with it. The rich peeps, like Spanky P., can use cash to essentially block out reality and keep to themselves for a few years. big homes, gated 'communities', on-site dining, etc. Sequestered living, but still high-on-the-hog.Danhttps://www.blogger.com/profile/02629934080871994373noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-68948206032009177592008-10-23T09:57:00.000-04:002008-10-23T09:57:00.000-04:00Anonymous@ 9:45 - With our national debt at over $...Anonymous@ 9:45 - With our national debt at over $10T, I am not sure we will be able to have a social security, medicare, or other entitlement programs. I feel they will be sacrificed to pare down the debt.bluebirdhttps://www.blogger.com/profile/09600634086150466162noreply@blogger.com