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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: zonder who wrote (31640)	6/7/2005 11:35:29 AM
From: mishedlo	Respond to of 116555

Bill Bonner ..... ..... We tried to explain the "neg am" mortgage to a friend from Latin America yesterday. "How could that possibly work," he asked. "How would the lender make any money offering loans below the going rate of interest? Why would anyone do such a crazy thing?" We wondered too. But then we realized – it was just another little stitch in the vast web of mutual deceit that is America’s empire of debt. The buyer has no intention of ever paying off his loan out of his own pocket. The lender has no expectation of ever getting paid. The buyer thinks he will resell a year... two years... five years... later, at a profit, of course. Then, he’ll move on to the next mortgage. The lender could care less; he’s already sold the credit to Fannie Mae. A man with a negative amortization mortgage owes more and more money as time goes by. If his income does not rise, his house better; otherwise, he will be in a jam. Still, the house buyer expects to make money without working for it. The lender expects to make money without taking any risk. And nobody expects any significant disruption or surprise. And yet, the longer house prices rise faster than GDP, inflation, and incomes, the closer we must come to the end of the trend. Already, at $450,000, the carrying cost of a 6% mortgage is $27,000 per year. Hmmm... the median household income is only $43,000 per year. It is clear that the buyers are not really buyers, but speculators. And that the moment prices fail to rise they must fall. Because the marginal buyer depends on rising prices just to stay even – paying his mortgage, taxes and upkeep. .... .... lewrockwell.com

To: zonder who wrote (31640)	6/7/2005 11:43:57 AM
From: mishedlo	Read Replies (2) \| Respond to of 116555

G8 considers tax incentives to oil companies to boost refining capacity news.ft.com The Group of Eight leading economies is considering tax breaks and planning concessions for large oil companies that would stimulate construction of new petrol refineries and avoid severe supply bottlenecks.

To: zonder who wrote (31640)	6/7/2005 12:00:06 PM
From: CalculatedRisk	Read Replies (3) \| Respond to of 116555

Last night, Cramer "guaranteed" $350 on GOOG by the end of June.

To: zonder who wrote (31640)	6/7/2005 12:02:18 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

What is a "budget rebate"? ECOFIN Netherlands´ Zalm says UK budget rebate ´unacceptable´ Tuesday, June 7, 2005 2:30:17 PM afxpress.com Netherlands' Zalm says UK budget rebate 'unacceptable' LUXEMBOURG (AFX) - Dutch finance minister Gerrit Zalm said it is "unacceptable" that the UK alone should enjoy a rebate on its EU budget contribution Zalm said if EU member states fail to reach a deal on the bloc's future funding by their June deadline, the UK, which takes on the rotating EU presidency on July, may be forced to show more flexibility on its rebate "It is impossible to have a system that only benefits one country," he said. "To us, it is unacceptable that only the UK should get the rebate." Earlier, UK chancellor of the exchequer Gordon Brown reiterated his government's determination to retain the rebate negotiated two decades ago by then prime minister Margaret Thatcher ====================================== ECOFIN UK´s Brown wants to see euro zone economy grow faster, defends rebate Tuesday, June 7, 2005 1:44:40 PM afxpress.com \|\| \|\|\|\|\| \|\|\|\|\| 2005-06-07 14:44:40 ECOFIN UK's Brown wants to see euro zone economy grow faster, defends rebate LUXEMBOURG (AFX) - UK chancellor of the exchequer Gordon Brown said he wants to see the euro zone economy grow faster "There is no doubt that all of us benefit from the euro area growing faster than it is at the moment," he told reporters on the margins of a meeting of EU finance ministers Brown also reiterated that the UK will defend its EU budget rebate, negotiated by then prime minister Margaret Thatcher two decades ago "There will be no change in our position," he said