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

To: elmatador who wrote (41264)	10/13/2008 1:42:49 PM
From: Secret_Agent_Man	Read Replies (1) \| Respond to of 218090

then we will all go down in flames

To: elmatador who wrote (41264)	10/13/2008 2:46:09 PM
From: dvdw©	Respond to of 218090

demand management is on the verge of failure........all systems constructed to that metric are toast, by way of thier intrinsic self interest......being always guided by the fact of thier own largesse. no do good rhetoric can change or interrupt, that which is already in motion. the above applies to all nationalities so engaged......the euro took another blow today, as the various rescue plans essentially ceded to the lack of trust they have in thier brothers to do good for anything euro. contradictions are broken by actions taken, sans the rhetoric and denial. ro/rs=cf

To: elmatador who wrote (41264)	10/13/2008 3:42:42 PM
From: Elroy Jetson	4 Recommendations Respond to of 218090

Like shattering a glass, the deleveraging process cannot be reversed. And as we've observed, the removal of excess debt reduces the price of virtually all assets. I'll use one friend as an example of what has occurred - and will continue to do so. This friend has borrowed $400,000 to buy a $450,000 home which is now worth $320,000. He also owned $480,000 worth of stock which is now worth $260,000. So my friend has lost $270,000 plus the $80,000 which he owes the bank, beyond the loan amount he can sell his home for. Since my friend has lost $350,000 - his government has decided to provide various banks with $80,000 in capital in order to compensate. I suppose the theory is my friend can now borrow on a new scheme to try to get back to where he was. The problem with this theory is his earned income is the same, and his investment income is now lower. So how does he leverage-up? Someone like myself could leverage-up with loans, but I do not yet find asset prices attractive. So I assume the deleveraging process continues.