If you want to edjamacate yourself on the mortgage crisis

[Jerk]

Peter Schiff explains it in laymen's terms.


Long, but worth it. If we don't understand it, how can avoid repeating it?


EgMclXX5msc

[SanJoaquinSooner]

I listened to the entire presentation. He's right on target with a lot of it... most of it. I disagree with a few points. And he infuses a bit of hyperbole here and there.

I have no idea if he is correct on the ultimate, undesirable consequences.


Thanks for sharing it.

[StoopTroup]

If it take an hour and a half to explain it...I'm thinking he'll have a hard time selling it to anyone let alone fixing it.

Sounds like he's getting ready to go on a book tour and make an infomercial.

I don't live in a bubble! It's a House! Bubbles don't have square rooms...what a dumbass!

:D

[StoopTroup]

Anyone who thought it was a good idea to buy something you couldn't afford to live in by getting a loan that would allow you to buy a house, live in it and only pay the finance charge every month with a huge balloon later on down the line and said buyer had no dough or a trust fund to later tap for said balloon payment to back it up in case you couldn't sell the house must be an idiot. Now if you hadn't financed 100% of the inflated houses value...they might have been able to sell that damn thing...but that's not what happened. The banks got stuck with these houses and the builders got rich.

Get rich quick schemes are a house of cards...always have been. If your couldn't see this **** coming...your a dumbass anyway IMO.

[StoopTroup]

I've been to some of these network marketing schemes just to try and talk a friend out of it.

This guy describes almost every guy I ever talked to at one of these things. I love when Clark Howard has folks on who are trying to get their Spouse to listen to them and they get on the air and explain it to Clark and he starts sounding off with a diesel truck warning.

Snake oil sales where at an all time high for the last ten years...lol

[StoopTroup]

Also...any of you who might think it wise to get an advance on a credit card and go play at the casino...you shouldn't.

YWIA

ST

[Jerk]

If it take an hour and a half to explain it...I'm thinking he'll have a hard time selling it to anyone let alone fixing it.



That's the problem. It takes more than a soundbite, newspaper article, or 2 minute news story to explain it to people.

BTW- did you notice that this video was made March 13 and Schiff predicted that the government would soon monetize its own debt? They started doing it on the 18th IIRC.

If they over-do-it, we will see the collapse of our currency. And every time we do it, we dellute the value of the bonds we've sold to China.

[royalfan5]

That's the problem. It takes more than a soundbite, newspaper article, or 2 minute news story to explain it to people.

BTW- did you notice that this video was made March 13 and Schiff predicted that the government would soon monetize its own debt? They started doing it on the 18th IIRC.

If they over-do-it, we will see the collapse of our currency. And every time we do it, we dellute the value of the bonds we've sold to China.
It is important to remember that everybody else is busy debasing the **** out of their currency too. It's not as if we are the only people reducing the value of our colorful pieces of paper.

[Vaevictis]

And every time we do it, we dellute the value of the bonds we've sold to China.

Is there a reason why this part is a problem? :)

[StoopTroup]

Any of you see CNN's Interview with Elliot Spitzer?

He's the Prostitute loving Ex-Gov of NY that prosecuted folks at AIG. Seems he was kind of onto them too. Funny how the prostitute thing was more important. The media put the pitbull to sleep instead of letting him off his leash IMO.

[Jerk]

Is there a reason why this part is a problem? :)

Yes. Eventually they are going to figure out that we're turning it into a big giant ponzi scheme and give us the finger.

[royalfan5]

Yes. Eventually they are going to figure out that we're turning it into a big giant ponzi scheme and give us the finger.

Of course they can't actually eat their consumer products for export, and are fairly reliant on the United States for import of some of their staple commodities. Could they do without US soybeans? Maybe, but not without a significant social cost.

[Jerk]

It is important to remember that everybody else is busy debasing the **** out of their currency too. It's not as if we are the only people reducing the value of our colorful pieces of paper.

Yes, and it is explained here that it could lead to deflation.

Who knows?


http://market-ticker.org/archives/879-Bernanke-Inserts-Gun-In-Mouth.html



The danger here is that this really is "the last bullet in the gun." If it fails, our currency and political system would appear to many who read this to go down the toilet in a hyperinflationary detonation.
Not so fast grasshopper.
See, if he fails, it won't be simply a United States phenomena. Quite to the contrary. That failure will in fact be global - Bernanke has guaranteed it by tying The Fed to every other major central bank in the world via his "unlimited swap lines." We may be a cheap $5 hooker in the bar, but of the hookers, we've got crabs and everyone else has AIDS!
The error in the hyperinflationist scenario is that without being able to couple price increases back into wages they are unsustainable - price increases instead collapse demand. If gasoline goes to $20/gallon you will buy less of it - a lot less - not because you want to, but because you simply don't have the money. This in turn destroys the gasoline retailer and oil company's operating cash flow, which in turn causes them to lay off more people. In a debt-laden economy the debt percentage (of GDP) continues to rise even as spending drops and a mad dash to try to redeem what debt can be repaid soaks up all available money.
The nightmare scenario that is staring us in the face, right here, right now isn't hyperinflation. It is in fact a collapse of monetary systems driving demand for dollars through the roof in a crescendo of attempted redemptions into collapsed ("no bid") asset prices - a demand that Ben will not be able to meet, as the collateral backing those dollars will have all been exchanged for toilet paper. Whether Bernanke holds all this trash on his balance sheet or manages to scam Treasury into exchanging it for T-bills, the result is the same - there is no collateral behind Bucky and as employment collapses no production to replace it with either.
The mad scramble will be on, and as it happens trade will be choked off by not a collapsing dollar but other currencies collapsing around the world.


Look, they've tried everything under the sun to avoid this. The sooner we take our medicine the sooner we can recover.

[Jerk]

Of course they can't actually eat their consumer products for export, and are fairly reliant on the United States for import of some of their staple commodities. Could they do without US soybeans? Maybe, but not without a significant social cost.

They can buy their own food without buying our bonds.

[Vaevictis]

They can buy their own food without buying our bonds.

Yeah, but if our economy collapses -- something which would be made more likely by their not buying our bonds -- we won't be buying their stuff.

They're not going to be able to make up for that huge drop in demand, and then they won't have the money to buy food.

At which point, they'll be too busy putting down revolts for us to have to worry about them.

[Jerk]

Well, it is a worst-case scenario. I'm not saying it will happen. But if it does, hold on to your ***.

http://www.cnbc.com/id/28075966

http://www.forbes.com/2008/12/18/treasury-bond-lehman-pf-ii-in_mt_1218chartroom_inl.html

http://uk.reuters.com/article/businessNews/idUKTRE51R1Q720090228?pageNumber=2&virtualBrandChannel=0

China

http://www.usnews.com/blogs/the-ticker/2009/03/13/signs-of-stress-warren-buffetts-downgrade-chinas-treasury-jitters.html

[RUSH LIMBAUGH is my clone!]

Maybe the investigations are looking away from the problem:
http://www.investors.com/editorial/editorialcontent.asp?status=article&id=310345288596744&secid=1502