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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Mike Johnston who wrote (88164)	10/30/2007 8:20:38 AM
From: westpacific	Respond to of 110194

Mike, that post is so well said. And get ready - we will have 'Marxist' Hillary coming to power soon......you think the Republicans have messed things up. You have seen nothing yet! West

To: Mike Johnston who wrote (88164)	10/30/2007 10:12:11 AM
From: Crimson Ghost	Read Replies (1) \| Respond to of 110194

Mike This "socialism" you complain had and still has the all out support of the financial industry and helped create a bevy of new billionaires. A curious kind of "socialism" that mainly benefits the rich and powerful while screwing average folks.

To: Mike Johnston who wrote (88164)	10/30/2007 11:58:09 AM
From: Proud Deplorable	Read Replies (2) \| Respond to of 110194

"And what is the definition of socialism ? - Government intervention in the economy." Good thing there is government to stop Capitalists. So where do YOU draw the line? Can't have your cake and eat it too. In my opinion the government should have done what they did in Shanghai last Fall....bring in a speculators tax. Or like Australia did, forbid the sale of existing residential real estate to offshore investors. The way I see it is capitalism is precisely what created the bubble...GREED AND EXPLOITATION of those who are less educated. The fact is Wall Street, not the government preyed upon the poor and needy but the stupid young people also got burned as well.....The American Way "Police have rescued 14 children from a New Delhi sweatshop at the centre of a scandal involving US clothing giant Gap." "Many of the children are conned from their parents by unscrupulous people-trafficking operations," Mr Ribhu said." "The children are aged eight to 15 and at least three of them have told me already that they were working for no pay at all." A Capitalist version of a bag lady....the GAP between the rich and poor is widening in the USA....socialism would be the cure not the disease.

To: Mike Johnston who wrote (88164)	10/30/2007 1:12:12 PM
From: benwood	Respond to of 110194

"Many poor signed up for those loans out of pure desperation, afraid of further government-sponsored hyperinflation" Mike, The poor by definition are likely to live paycheck to paycheck and also have very little anything which will erode away. Seriously, they have little to fear, inflation or not, unless it causes their jobs to vanish. Should hyperflation "stick" then they will get annual or semiannual raises, just as in the mid 70s through late 80s. I posit that there was not a single solitary person as you described (desperate because they recognized the nascent signs of hyperinflation, which most learned people now -- 1 to 3 years later -- still do not recognize). If there was any desperation, it was that they were missing yet another train to riches leaving the station. A last chance to get wealthy the easy way. In other words, based on greed, the usual suspect in manias and money for nothing schemes. For most, there wasn't desperation, just the realization it was a no-lose proposition in which if they could not handle the increased payments, they'd either sell for a big profit or just live free a while and then get evicted. Either way, they'd come out ahead of where they had been paying rent every month, and they'd live in a better home a minimum of three years. If we do get into a sustained period of hyperinflation, expect unions to become stronger again and expect automatic COLAs to become a common contract item. As Volker knew, when COLAs become common, then high inflation is systemic and must more difficult to eradicate. The ones to lose the most in hyperinflation are the middle class, for they have more wealth but less "ownership" and so they will be behind the curve all the way. The upper class will do fine because they own the bulk of the inflating assets. The poor will do fine because their paycheck to paycheck continues to grow (but with a lag -- they won't get off scott free but comparatively they will).

To: Mike Johnston who wrote (88164)	10/31/2007 4:52:47 PM
From: roguedolphin	Read Replies (1) \| Respond to of 110194

Bravo Mike for telling it like it is!!!!! Rogue

To: Mike Johnston who wrote (88164)	10/31/2007 7:29:56 PM
From: Cogito Ergo Sum	Read Replies (1) \| Respond to of 110194

I used a CMHC loan (Canadian GSE) to buy my first home in Toronto 21 years ago. I'm in my second home now which I didn't need that help with and have been mortgage free about two years .. took 11 years to pay it off.. Can you blame the government for the most powerful forces on the face of the earth ? Human greed and stupidity ? By taking away these GSEs you are again asking the government to protect people from themselves and hardworking folks that just need a hand will suffer. I only mention this in case you infer that these agencies should not exist.. instead of being properly policed.. blackie