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

To: valueminded who wrote (71489)	11/21/2007 12:22:17 PM
From: ggersh	Read Replies (1) \| Respond to of 116555

IMHO......The trust of the Financial System for one has been broken. We sold the world all this bad paper. If our fearless leaders had been believable in telling this that the problem was "Contained" we might not be in the shape we are in. Also we took all this paper and kept leveraging it to the hilt. So when the bottom of the inverted triangle breaks, it becomes harder for the rest of the Triangle of Debt to be supported. How this is a good explantion. This is how I see it....

To: valueminded who wrote (71489)	11/21/2007 12:26:40 PM
From: mishedlo	Respond to of 116555

You are missing the fact that there are $500 Trillion +- and that is with a T bet on everything under the sun but a huge portion of that is credit default swaps on stuff related to housing, homebuilders and financials. That can collapse the entire freaking system. Even without that leverage, you would be wrong as it would restrict bank lending for years to come. Mish

To: valueminded who wrote (71489)	11/21/2007 12:38:58 PM
From: elmatador	Respond to of 116555

Let's hear VM. Whenever someone talks about SCALE we've got to listen! VM compares real economy, with the financial loses. The loses are in the financial realm. The real economy is right there. Message 24074237 The value of all real estate (I think housing) it is 23 trillion. It's that 23 trillion that will be all downgraded. I am just thinking louder here... But if they are to be downgraded, are not they return to where they were circa 2002/3? It is a relative loss, not an absolute loss.