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bucheon bum
Joined: 16 Jan 2003
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 Posted: Wed Mar 04, 2009 10:48 am Post subject: Tom Friedman on the economy |
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He is about as bleak as mises is:
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| And many other banks � the ones that took on the most leverage like Citigroup and Bank of America � are in trouble because of all the loans on their books that can�t now be repaid, such as auto loans, commercial real estate loans, credit card loans, corporate loans. Most of the big banks have not marked down these loans yet because if they did, they would be insolvent. The subprime toxic securities will take billions to bail out; the loans could take trillions. |
Personally I think anyone who thinks the economy is going to turn around a year from now is being widely optimistic. I still think we haven't hit bottom yet. It is 1929 right now. We still have to experience the early 30s.
Full article: Obama's ball and chain |
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mises
Joined: 05 Nov 2007
Location: retired
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| Posted: Wed Mar 04, 2009 11:09 am Post subject: Re: Tom Friedman on the economy |
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| The subprime toxic securities will take billions to bail out; the loans could take trillions. |
This is my worry too.
At some point, the banks (in some form) have to go under. For the average guy, which we all are, this means you need to move your assets away (let the liabilities stay, in hopes of a jubilee..) from the big banks (think of it like backing up away from a car on fire.. you know it is gonna blow). In Canada, I suggest Alberta Treasury Branches, who insure 100% of all deposits. In the US, your local community credit union (not for profit) should suffice. The big commercial banks will fall, and FDIC does not have sufficient capital to pay you back. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Thu Mar 05, 2009 8:36 am Post subject: Re: Tom Friedman on the economy |
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| mises wrote: |
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| The subprime toxic securities will take billions to bail out; the loans could take trillions. |
The big commercial banks will fall, and FDIC does not have sufficient capital to pay you back. |
The Ponzi economists have always pointed to the FDIC as one of the great achievements of FDR and one of the reasons why socialism is good, the Federal Reserve keeps us our money safe, and we never need worry about another depression.
Ever so slowly, the lies of the Ponzi ecomonists are being exposed for all to see.
Now.
We are in the Second Great Depression.
The Federal Reserve has destroyed the value of the dollar and every currency backed by the dollar.
The Federal Reserve has dragged us into another depression.
The Federal Reserve has destroyed the banking system.
The FDIC is teetering on the verge of bankruptcy, and the big banks have only just begun to fall.
The Bush/Obama plan is making things worse and will cause even more financial institutions to fail.
If Bush and Obama had done nothing at all, the crash would have been faster and deeper and we would now be in recovery. Fewer financial institutions would have been brought down than what we are going to see.
The Bush'Bama Ponzi Plan is spreading and magnifying the virulence of the disease. |
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Ya-ta Boy
Joined: 16 Jan 2003
Location: Established in 1994
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| Posted: Thu Mar 05, 2009 11:51 am Post subject: |
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Here's an interview with Liaquat Ahamed (where DO these economic geeks come up with their names?), author of 'Lords of Finance'. He isn't just doing happy talk, but it isn't as bleak as other things we've seen posted. There's quite a bit about Summers and Geithner.
I especially liked this: "What really astounded me was that Hoover economics�that �do nothing, balance the budget"�still has a following. It's mind-boggling that people say what we really need to do is balance the budget or let this whole system revive itself, if the government doesn't get in the way." (Sorry, ontheway!)
And this: The bear market in the Great Depression lasted 30-something months. Profits of US corporations went from $9 billion (9 percent of GDP) to 0. I don�t think we�re going to have the same fall. Profits will probably fall by half and I would be surprised if the bear market lasted more than two or three years. We started in Oct �07, so we�re 16, 17 months into it. It�s got further to go, but the low is probably going to be this year, not next year.
http://www.thedailybeast.com/blogs-and-stories/2009-03-05/the-end-is-near/full/ |
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bucheon bum
Joined: 16 Jan 2003
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| Posted: Thu Mar 05, 2009 12:17 pm Post subject: |
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| He's not addressing the bank or credit issue though. THAT is what I'm worried about, not companies like GE, Intel, et al. The bottom of the debt/credit crisis hasn't been reached yet. I'm no expert but the signs are clearly there. Just look at citigroup and BOA's stock prices as evidence. |
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Pluto
Joined: 19 Dec 2006
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| Posted: Thu Mar 05, 2009 12:42 pm Post subject: |
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DJIA dropped more than 300 points in final hour of trading.
Link |
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