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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (147872)	9/18/2008 11:27:17 PM
From: XoFruitCake	Respond to of 306849

"The moral hazard meter will absolutely break" I think it depend on what kind of price "RTC" extract from the offenders. If it is hash enough, I am all for it (since there is really no better solution. The only balance sheet around that is bigger than all the banks combine is Fed. So if Fed doesn't come to rescue, there is no way we can get out of this mess.. And we all have to crash and burn and see what is left). If the penalty is not bad enough then I agree with you. We will see the same problem again in 10 years instead of 50 years later.

To: patron_anejo_por_favor who wrote (147872)	9/19/2008 12:37:35 AM
From: estatemakr	Read Replies (3) \| Respond to of 306849

re "an upblast lasting weeks, followed by a crash with no short covering to cushion the blow"........that seems to be the general consensus, so therefore, my guess is is will NOT play out that way. Duration of the "upblast" compressed into a matter of a couple of days or so......then everyone tries to beat one another to the exits. Backfire of major proportions in the works by the govt imo

To: patron_anejo_por_favor who wrote (147872)	9/19/2008 1:11:35 AM
From: James Hutton	Read Replies (1) \| Respond to of 306849

"3) This won't be construed as "dollar-positive" for very long. Moving risk to the taxpayer because the entire financial system could no longer handle it is hardly representative of a healthy economy or currency" I've given up trying to figure out how the dollar moves up every time the Fed and Paulson promise more dollars to bail out some sh*thead who doesn't deserve it. Dollar up/gold down tonight. FWIW, I talked to some folks tonight who aren't particularly interested in markets other than their retirement accounts they see every three months. One guy said he heard the AIG news and got really pissed, even though he didn't quite understand it. Another guy had the same reaction about FNM/FRE. And on and on. So, although most people sort of understand the government is "bailing out Wall Street", it is clear that most people have no clue that the Federal Reserve and the Bush Administration have killed whatever was left of the free markets in this country and have given away billions in taxpayer money to a select few wealthy individuals, and it appears the process will now go on for years. Boone Pickens may be wrong when he says buying oil from the A-rabs is the greatest transfer of wealth in the history of the world. It's also pretty funny when you mention short selling, most reactions are, "that's illegal isn't it?" Until now, I laughed and explained the difference between naked and non-naked short selling, at which point most people's eyes just glaze over. Anyway, the last couple weeks have been utterly surreal. Kind of like something Keynes, Putin, and FDR would have dreamed up together if they had shared some bad acid.

To: patron_anejo_por_favor who wrote (147872)	9/19/2008 9:05:06 AM
From: DebtBomb	Read Replies (1) \| Respond to of 306849

Real estate crash II is next....the sleepwalking public just doesn't know it yet. It's 1930. Just my opinion.

To: patron_anejo_por_favor who wrote (147872)	9/19/2008 9:26:08 AM
From: damainman	Read Replies (1) \| Respond to of 306849

"4) The moral hazard meter will absolutely break. This completes the most massive transfer of government funds from taxpayers to plutocrats in the history of mankind. Way to go, Merka!" Yep, stipulation should be no executive bonuses and forfeiture of all older stock options in exchange for a deal with RTCII.