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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Metacomet who wrote (26095)	12/6/2007 12:45:08 PM
From: Maurice Winn	Respond to of 218449

Thanks for that post. It seems that as in the Great Depression, the government will take a financial crunch and turn it into at least a disaster and probably a catastrophe. When they see markets clearing and doing it in a big way, they feel the need to boss everyone around and transfer wealth from those who should have it to those who shouldn't and destroy a huge amount of wealth in the process. biz.yahoo.com <The delinquency rate for all mortgages climbed to 5.59 percent in the third quarter. That was up from 5.12 percent in the second quarter and was the highest since 1986,> I haven't got a mortgage and I dare say some Americans don't have them either. So at the very most, perhaps 4% or maybe only 2% of houses in the USA are delinquent. In a horde of humans, something like 2% of them are murderers [or would like to be]. That many commit suicide. More than that are hopeless from an economic point of view. The rest can work around 5% who are bung. The other 97% of people can buy the houses which are in default, and rent them to the people living in them. Heck, they wouldn't even need to take out mortgages to do so if they are cheap enough to buy. Rents could be low; a fraction of the current payments expected for "owning" the house. The trend is not in the right direction though. But markets do have to go through tidying up processes now and then as all sorts of people think they understand financial relativity theory enough to borrow a bunch of money and go shopping. Victorian Virtuous Values need to be learned by people time and again. Pinocchio was tempted to go to Pleasure Island where the naughty boys turned into donkeys. So far, it looks as though markets will clear and 5% of houses will change hands with some "owners" going back to renting, often their own houses. This is just financial relativity theory in action and we are orbiting close to an event horizon as a black hole has formed in the vicinity. We are near escape velocity but if Paulson, Bush, Clinton, Obama and co get their grubby little mitts on the engine controls, they'll slow us down sufficiently that we'll fall to the event horizon and it'll be game over Rover. Ron Paul is not mentioned as being in the lead which suggests that Americans are intent on voting themselves poor. Democracies around the world are prone to do that because the average person has the financial relativity theory intelligence of a frog and have no idea whatsoever what makes the world tick. They just want to vote to take something away from somebody else and give it to themselves. Or at the very least they want to boss other people around and force them to do or not do a laundry list of things they don't want done or insist must be done. We have nothing to fear but fear itself. If nobody panics, we might just get through this. But when governments issue soothing words, that's the time to seriously panic, flee and escape. Watch for politicians saying things are okay, stay calm, we are dealing with this issue, we have nothing to fear but fear itself, ... So far, it looks like the long-expected market clearing as the post Y2K biotelecosmictechdot.com bust interest rate slashing is cleared out. I'm really surprised it has taken 8 years and looks likely to be 10 for the process. I'd have guessed it would take only 2 or 3 years. But they did cut rates too late, then cut them too far for too long, which exacerbated the swings. Now they plan to introduce a third factor of politicians and electorates causing even more damage by disrupting contracts and raising the risk premium for lenders to be enticed to lend their money to dodgy borrowers. Mqurice