Not much to be delighted about today. The beavers by the way are hunkering down in their dens for the winter so it's pussies till next spring.
The zombie apocalypse is slowly taking shape about the time of a worldwide meltdown. One being a fun fantasy while the other being a real event. From what I'm reading be prepared for a replay of 2008 only this time it will be in spades. Here's what I've gathered only this is just the tip of the iceberg as the expression goes. The first stimulus package money has run it's course. That is why Obama is pushing so hard for a second. The banks have still not cleared all the foreclosures off their books from the first round. True many of the sub primes have been dealt with but there is the next level, the Alt-A loans, that are about to hit their peak this month and next. Those are the mortgages that adjust every few years. And the requirements to refinance at present are so high it's unlikely that a homeowner could do that especially considering the value of their homes has gone down over the last three years. Banks to their credit (I don't usually say anything nice about them) have actually lowered mortgage rates to below 4%. That is I believe not enough to stave off another round of foreclosures. Local governments have had to raise property taxes to make up for the slumping markets and loss of revenues. This is not to mention the increases in food prices and gas (although gas has been coming down lately it's still higher than it was a year ago). To add insult to injury a new round of lay offs has been proposed and reported by several financial and tech firms.
Wall Street is another factor in the meltdown scenario. They were given trillions in loans and guarantees and what did they do? Did they reinvest in America to get things going again? They did not. They took the money and leveraged it to an even higher level than before. But this time when the house of cards falls there won't be anyone there to pick up the pieces because all of that money is intertwined with the financial institutions of Europe. The talking heads on the financial networks are touting the very same things they did the last time this happened. Everything is just ginger peach, nothing to worry about, nothing to see here. All the while the smart money is running for cover in liquid assets. Greece is at present the biggest 800 lb. gorilla in the room. If they get bailed out then it will look like a reward for failure. If they don't get bailed out and default then there could be a domino effect that would spread to the rest of Europe and beyond. To somehow think that we are isolated from them is foolish thinking. And I see the Euro has dropped in value today as the credit ratings of Greece and Spain have been lowered. Not a good sign of things to come.
Bank fails later if I think about it
3 comments:
Oh, wall street isn't just hoarding the money and investing it overseas. They're pumping millions into Republican campaign coffers. As of June 30, Mass. Sen. Scott Brown had $11 million, most of it from the financial industry. And, where do you suppose Karl Rove has gotten $284 million from?
The banksters' idea of investing in America is buying the kind of government that will roll back reforms, let them build their next ripoff bubble and add to their profits in a thousand ways.
I'd love to say you're right but with the amount of leveraging going on this time we'll see the same results only worse than last time. And they don't control the message now we the 99% do.
Stimulus package sounds like a porn flick, which makes sense 'cause we're all getting fucked.
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