Has Meltdown II Already Started?

Discussion in 'Economy' started by william the wie, Dec 5, 2010.

  1. william the wie
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    william the wie Gold Member

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    Housing prices are down, unemployment is up, QE II set sail immediately after the election and the overseas economic news is not good either. So here are my questions:

    Will this time be faster and harder? By 2005 widespread mortgage fraud had been uncovered, in 2006 housing prices cracked, in 2007 specialty Bear Sterns hedge funds failed and in the fall of 2008 full scale meltdown hit. This time the people who pulled the trigger the fastest, most and hardest in 2004-8 are the ones with the most money. So the rush to the exits will most likely be bigger and faster this time.

    Will congress cut off the Fed and the treasury at the knees this time because of their failure last time? It does seem likely since Obama kept most of the same team in place.

    How bad is this next time likely to be?
     
  2. Baruch Menachem
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    Baruch Menachem '

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    What is the new problem? Is China going to use some other currency? Or OPEC?
     
  3. loosecannon
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    loosecannon Senior Member

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    We are beginning this cycle closer to the floor. So we don't have as far to fall.

    The next 17 "dips" will be less shocking than the first, but they will span decades.

    are you kidding? The congress won't do shit until we burn the Capitol.
     
  4. william the wie
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    william the wie Gold Member

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    Maybe but meltdown refers to not enough people lending to maintain markets in financial assets: stocks, bonds, mortgages, rentals, money markets and so on.
     
  5. uscitizen
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    uscitizen Senior Member

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    MeltdownII?
    this is just a continuation of our fall. The fall is not an even curve and will even have a few upward bumps from time to time in a few areas but the fall will continue.
     
  6. uscitizen
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    uscitizen Senior Member

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    LOL yeah that is what we need more borrowing :D

    Another few jugs of the hair of the dog that bit us.

    A country of debtaholics.
     
    Last edited: Dec 5, 2010
  7. Baruch Menachem
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    Baruch Menachem '

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    Referred to in the investing trade as "Dead Cat bounces."
     
  8. uscitizen
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    uscitizen Senior Member

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    Dead cats do not bounce.
     
  9. william the wie
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    william the wie Gold Member

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    You may know that, I may know that and despite using different terms I'm pretty sure US Citizen knows that but does team Obama know that?
     
  10. uscitizen
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    uscitizen Senior Member

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    I expect they do. they as all politicians spin things just as positive for themselves as they can. But I am not sure they have a clue on what to do to actually have long terms improvements in our situation.
    The same experts advising Obama are the same ones that did not see this coming or predicted a 6 month adjustment.

    imho the old rules of economics in America are no longer fully valid due to permanent loss of jobs, a world economy, and conversion to a consumer spending economy. But not limited to thse items.
     

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