The stimulus package check thing was the stupidist idea the government ever had to help the economy, obviously it didn't work and just further shows that Bush is terribly inept at anything he tries to do.

I couldn't agree more. It is all a bit depressing when laid out in front of you to see like that. Better be stocking up on the canned goods and fire wood, this ride is just beginning.


And as I posted in another thread I will say again - the mortgage scene is going to get a LOT worse in the months to come. Banks and lenders are already bracing themselves. We are just now realizing the effects of the sub prime meltdown and what it means for the economy.

Late 08 - through 2009 you will see millions of designer loans start to reset. Pay option ARMS and interest only loans that were done to give the lowest monthly payment available will begin to adjust for the first time.

People who have been struggling to pay only the interest each month will suddenly have to pay the piper in full. It is being predicted by a lot of people I know in the industry to be the worst potential crash in history.

Imagine 20 million mortgage payments doubling in an already stagnant market, you are going to see default numbers shoot through the roof. Banks will fold off of foreclosure losses and forced buy backs, and not just small time lenders but big time players.

Imagine if you were to combine this perfect storm with record high credit card defaults...now throw in record high gas and food prices...not to mention a polarizing election and an impending invasion of Iran.

It is almost time to panic, folks.

Originally posted by BlackOps719

It is almost time to panic, folks.

Panic solves nothing.

I can't remember where I read the article; I think it might have been the NYT, or they were just quoting the NYT.

They said that there are only two types of stories about the economy: Apocalyptic or worse!

Just keep your head and plan for the future. Other than that, not too much else you can do.

I am usually the first person to attack you doom and gloomers.....Not this time. You have all made logical and realistic assessments.
It sure sucks to be a 41yr old, 3L, owing over $100,000 in student loans and who has already gone chapter 7 back in 2004 and owns nothing and has no assets, but needs to pay child support for 3 kids.
............the sun will come outtttt tooooomorrrowwwww, bet your bottom dollar that tooooomorrrow there'll be sunnnnnnnnnnnnnnnnn......
((((where are the Grey's when you need them....take me away!))))

Originally posted by 420prajna
The stimulus package check thing was the stupidist idea the government ever had to help the economy, obviously it didn't work and just further shows that Bush is terribly inept at anything he tries to do.

No..

It shows that Government is sadly inept at everything it does.



What people need to realize is that those who can no longer pay mortgages and are leaving.. still have thousands upon thousands of debt on credit cards. At some point, they will stop paying on those. They say missing a credit card payment or defaulting on one is the worst thing you can do to your credit.

Already there is a rise in re-possession on car loans, luxury vehicles, vacation properties and so on .. things the Middle Class are otherwise interested in... Miss one Credit Card payment, and carry it with you for 2 years.

Credit Scores are the closest thing to the Mark of the Beast that any man can imagine.

Well, if anyone doesn't want their stimulus check, I'll send a U2U and you can send it to me. I'm sure that I can put it to work!

Hey Rockpuck we knew better, many in this boards that had followed the downfall of the American economy and the crunch on the American's pocket has seen this coming and no end to it.

The only ones making it peachy in the Markets are the speculators.

But then again we have people in government that are reaping and cashing out on the great American give away.

That is why you don't see anything been done, either that of our own government have their hands tie behind their back thanks to the influences of private agendas.

When we have a body of government that is ruled by private interest they do not have time to work for the people anymore.

But something is for sure, the big CEOs will not lose a penny of their outrageous salaries as long as they can dispose of the American workers.

[edit on 20-6-2008 by marg6043]

I disagree with you on a particular point. You said the value of our property is falling.

I invite you to take a closer look.

The dollar is suffering from infaltion, you can buy much less with one. Yes your home is worth less, and decreasing in dollar value. But it is still the same home.

When that same dollar which could buy a loaf of bread, can only buy one slice, how does that compare to your home, which is still a complete home, not somehow reduced to single bedroom or a toilet.

When you pay it off in deflated dollars, what loss do you see that it sells for less dollars than when you made your deal? And those newer valued dollars still buy an equivalent valued home.

Truly you could buy twice the home for half the originally valued money at some future date. But who will have the originally valued money to do so?
That was then money will not have the same value.

Take a hard look, and you will see that it is only the illusion of relative values which is shifting. Real things are the best of all possible investment in these times. A bottle of whiskey will remain a bottle of whiskey. A bond or euro may be become worthless or change value daily.

The values may change relative to scarcity, but that is a different matter entirely. That is the matter you should be concerned with.

[edit on 20-6-2008 by Cyberbian]

I'm glad someone brought attention to recent DOW drop below 12K. I'm not much of an economist but I know the basics. One thing I particularly find odd is how the economists are not being more optimistic to the economic decline, usually it's more of "oh it's a minor recession but it will get better soon" type thing or thats what I was taught in school. However they just seem to be sounding like doomsdayers the more it drops. My theory as to why we haven't seen the total impact of rising prices is because corporations still have that extra spending money from when prices were low it's just a matter of time before that pocketbook will get tighter and other prices will go through the roof. I've already seen it hit my work, we raised prices not so long ago. I haven't seen it hit large franchises like McDonald's yet, but when that dollar menu becomes the two dollar menu thats when I'll start panicking

Thanks for cheering me up Rock! I knew things were bad, but now I also know the reasons why.

Seriously, good post. I just hope people will take heed, and begin planning appropriately for the crash. There's still time..

Well it wont be good... I don't blame that action on the markets dropping, but technically since the withdraw the DOW has gone from 12,400 to 11,800. But again, I don't think that it is directly related to the dow dropping. Cash reserves taken from banks that cause the bank balance to drop into red numbers will be made up in over night loans, if needed, of course banks running out of capital to begin with is helping cause the problems we have.

The most ominous sign is that the west is certainly gearing towards war..