[Roam]

Quote:

Originally Posted by Wodgy /img/forum/go_quote.gif ARMs and Alt-A mortgage resets are based on short-term LIBORs. These rates are continuing to fall and so resets aren't going to be the problem they would have been even six months ago.

3 year charts
Weekly table on yahoo
All mortgage rates have been rising since the end of January, with today's rate cut by the Fed, long-term fixed rate mortgages have eased a bit for now. However, all ARMs are continuing to move upward.

 

[Agent Kang]

Quote:

Originally Posted by Lazarus Short /img/forum/go_quote.gif So the Fed cut the prime rate, and may well cut it some more very soon. More of the cheap, easy money that got us where we are. I suspect that the current head of the Fed, who I understand is a world-class expert on the Great Depression, knows that it was precipitated by [in part] tight money. I expect he will continue to keep the money floodgates open, thinking the unspeakable can't happen on his watch. Greenspan [who I knew of from his Randian days] will enjoy his retirement. The other guy may well end up lynched. What it means to us is the vicious inflation we all expected in the late 1970's, but didn't get. Now we will. Smart money will get out of the dollar, and into tangibles, esp. precious metals. Really smart money will get into food. This is no joke. Those of you on this thread who are still bantering financial terminology especially need to wake up - you're still living in the post-WWII dream world. Laz

Huh? We did experience vicious inflation in the 1970's. We didn't merely expect it to happen: it did happen. The oil embargo of 1973? The poor macroeconomic fundamentals? The inflation rate peaking in the low 20's and averaging out to be 14% for the entire decade? These were all alive and well in the 1970s. I may be living in the post-WWII dream world, but thank god I can atleast sleep at night ignoring the fear-mongering CNN or whatever "end-of-the-world-as-we-know-it" news that's flashing on our tv screens.

 

[Lazarus Short]

Quote:

Originally Posted by Agent Kang /img/forum/go_quote.gif Huh? We did experience vicious inflation in the 1970's. We didn't merely expect it to happen: it did happen. The oil embargo of 1973? The poor macroeconomic fundamentals? The inflation rate peaking in the low 20's and averaging out to be 14% for the entire decade? These were all alive and well in the 1970s. I may be living in the post-WWII dream world, but thank god I can atleast sleep at night ignoring the fear-mongering CNN or whatever "end-of-the-world-as-we-know-it" news that's flashing on our tv screens.

You haven't seen vicious yet. Review the history of the German hyper inflation, or current events in Zimbabwe, which I take considerable interest in: inflation rate 100,000% or worse.

Laz

 

[SuperNothing]

Quote:

Originally Posted by Lazarus Short /img/forum/go_quote.gif current events in Zimbabwe, which I take considerable interest in: inflation rate 100,000% or worse.

Last time I checked the Federal government wasn't confiscating land and then re-appropriating it. Unless you actually believe Mr. Mugabe's claims that it is the sabotaging of the Zimbabwean economy by American and European governments that has led to the current situation of hyperinflation.

 

[zincman]

You reap what you sew

 

[slwiser]

Good article from today's Telegraph.

Fed's rescue halted a derivatives Chernobyl - Telegraph

Excerpt:

"We may never know for sure whether the Federal Reserve's rescue of Bear Stearns averted a seizure of the $516 trillion derivatives system, the ultimate Chernobyl for global finance."

"Fed chairman Ben Bernanke has moved with breathtaking speed to contain the crisis. Last Sunday night, he resorted to the "nuclear option", invoking a Depression-era clause - Article 13 (3) of the Federal Reserve Act - to be used in "unusual and exigent circumstances".....

Note: refer to my post #31 in this thread....

 

[Arainach]

What drives me the most nuts about this entire scenario is that it reinforces horrible behavior. No matter what, we're going to have a large amount of inflation if not an all-out crash.

Who benefits the most? People with huge amounts of debt who lived beyond their means and have a lot of physical toys.

Who suffers the most? Those of us who saved money, those with actual retirement accounts, and everyone else with a lick of common sense.

 

[slwiser]

Quote:

Originally Posted by Arainach /img/forum/go_quote.gif What drives me the most nuts about this entire scenario is that it reinforces horrible behavior. No matter what, we're going to have a large amount of inflation if not an all-out crash. Who benefits the most? People with huge amounts of debt who lived beyond their means and have a lot of physical toys. Who suffers the most? Those of us who saved money, those with actual retirement accounts, and everyone else with a lick of common sense.

You have it right I think. Remember a phrase from what Marx's who said, "From each according to their ability; to each according to their need." From each according to his ability, to each according to his need - Wikipedia, the free encyclopedia

 

[Jaw007]

JP Morgan Chase has made a lot of bad loans,with high interest.

 

[Lazarus Short]

Quote:

Originally Posted by SuperNothing /img/forum/go_quote.gif Last time I checked the Federal government wasn't confiscating land and then re-appropriating it. Unless you actually believe Mr. Mugabe's claims that it is the sabotaging of the Zimbabwean economy by American and European governments that has led to the current situation of hyperinflation.

No, I believe Mugabe is a New World Order place man whose orders are to take that country down. When a man comes to ruin it is personal misfortune. When an entire nation comes to ruin, someone planned it that way.

Quote:

Originally Posted by zincman /img/forum/go_quote.gif You reap what you sew

Or sow.

 

[saint.panda]

This couldn't have gone on forever