Government Insider tells me Economic Collapse is Imminent.

reply to post by Skerrako


I guess it will be one wild ride lol!

Originally posted by Skerrako
reply to post by Ace High

 

No no you have it all wrong.....you were born in the perfect generation.

Actually I was born with a club foot, extra vertebra, extra ribs, and developed neuro-degeneration at 17. Daddy was 3rd Marines in Vietnam and sprayed with Agent Orange. My sister was born with worse deformations.

"Pefect Generation"?? ha ha ha ha !!

Do you know why everyone has degeneration of their spines right now? America was polluted by the prior generation...who not only robbed us but destroyed our very DNA

Cool story OP. I believe you believe the person who told you this story, and I mostly believe the story myself. The 4 million not paying and not being foreclosed on seems a little high, but it's at the upper range of the estimates I've heard. The FACT that banks have been able to hide their losses since the FASB was pretty much browbeat by CONgres into not implementing Mark to Market accounting is pretty well known by those who have followed things since '08. NOTHING of consequence has been accomplish by Dodd-Frank and IMHO 3 of the Big 4 TBTF would be insolvent if they had to mark their losses (JPM might be solvent but the others not a chance).

I'm pretty certain that we are in another economic inflection point similar to '08 and the 2000 collapse of the NASDAQ. I also notice that very few members who posted a lot then are still around. I remember the permabulls and true believers that posted then (at that time they seemed mostly Republican leaning and mostly Dem leaning now). We were talking about banks being insolvent even before Bear fell. I do not believe we will make it to Nov 2008 before something dramatic happens.The systemic risk that was the financial industry has been successfully transferred to sovereigns (and by extension the taxpayer) by the institution of TBTF and the accompanying bailouts. The world that will be ten years from now is not the world we live in now. I believe we are close to if not past the final chance to bring some sanity and control back into the financial institutions/governments of the world. What's going on in Europe, is more important than the Debt Debacle in the US at the moment keep your attention there of the PIIGS only Spain has not been the major focus of a news cycle yet. However, don't discount a Black Swan from somewhere else setting of the next set of dominoes to fall.

It's gonna be fun to watch the next few months. After three years of watching an alphabet soup of programs (TARP, TALF, QE 1, QE 2, and soon QE 3) attempt to buy time until the economy recovers, I have no doubts that Bernake, Geithner, Trichet, and others might pull something out of their ass that temporarily spikes markets. That's why I don't trade anymore, but nothing that has been tried yet has been able to put a dent in the employment situation or stabilize home values in the intermediate and longer term. The time period between major market crashes is getting shorter and shorter 87-2000 13 years, 2000-2008 8years. The time bought by interventions is growing shorter and the cost is getting higher. If they succeed with the next bailout/iintervention ( by whatever name) it will not by the same amount of time and if it happens this year or next the odds of it holding up through the term of whoever wins the next US election are slim.

It will be a shocker too all those nay sayers, when they realise that the bubble that has been created around the economy, the fiat currency, the interest that is ever increasing all comes to an end. Pretending that the fraud,and lies of the ones sitting at the top one percent have created, are not possible because some person from ATS believes they are much too intelligent to ever fall for something like that. Those that have a long way to fall seem to be the ones who do not think(want) anything will happen. False pride,ignorance, and arrogance will be the downfall of the western world, they have been running on it for far too long.

reply to post by DN38416


Not sure who you're referring to, but I for one know it will all collapse eventually.

Not only the abstract global systems, but the natural global systems as well.

I just think it's convenient that the owner of a business that would thrive on chaos, happens to mention something of nearly public knowledge, yet that which could cause a little more hysteria, and drive up sales a bit...

I do think the global financial system will eventually collapse, and if not in a few years, later this one.

We'll see.

Originally posted by Kitilani

Originally posted by camaro68ss
Ding ding ding, there are millions of familys not paying there house payments and banks are not collecting because they will have to clam a lose. ding ding ding. use your head

I am using my head and this sentence above makes no sense to me at all in any way shape or form. Then again, I know collecting a payment puts me at less of a loss then not collecting one does. What did I miss?

"c-l-a-i-m" "claim a loss".... no seafood involved here.
missing?:
Theway I understand it : the whole "mark to market debacle".

I.E.a bank loans out a full $300,000.00mortgage it puts $300,000 on its books like its paid for and loans against that "asset". ( its plainly obvious the housing market is taking a massive dump.)people are walking away. that $300,000 has little chance of ever being paid back. The banks have been allowed to let their books lag still showing the full value of the loan as an "asset". IMHO that should be criminal fraud. But hey they have the money(power). Now they are going to have to declare the loan is "in default" that asset doesn't existanymore. with added confusion on the "sold"( securitized) mortgages its unclear who holds the deeds for alotof these properties.
Forcing them to truthfully account for(write down) their losses.
Means "the shell game is up"!

If they are forced by bank regulators to report their real assets they become officially "bankrupt". depositors money and all.That's the way I understand it. Though I am fairly "ill informed" on "financial issues".

reply to post by Pervius

Originally posted by Pervius

Originally posted by Skerrako
reply to post by Ace High

 

No no you have it all wrong.....you were born in the perfect generation.

Actually I was born with a club foot, extra vertebra, extra ribs, and developed neuro-degeneration at 17. Daddy was 3rd Marines in Vietnam and sprayed with Agent Orange. My sister was born with worse deformations.

"Pefect Generation"?? ha ha ha ha !!

Do you know why everyone has degeneration of their spines right now? America was polluted by the prior generation...who not only robbed us but destroyed our very DNA

Well it's a good thing that when I say perfect I don't mean physical.

Eventually the truth of how our world works will be known by everybody, and then we (as a society) will change for the better.

I pretty sure you are an awesome person, and we're clearly interested in the same subject matter despite any differences we have. Six degrees of separation type stuff. I'm a 22 year old christian black male. Does that make any difference to you?

Originally posted by Stovokor
Yup...I get all my inside info from loonies at the local gun shop too...

edit on 13-7-2011 by Stovokor because: (no reason given)

You don't need to trust what this guy says...

He's right.

There are million of people who have not been paying their mortgages for at least a year.... because the banks would lose too much money if they were to foreclose on them...

So he's right on that.

The only thing he might not be right about is if the FDIC/Obama told the banks to foreclose on those houses... which it might be true... but will the banks listen? Or were they promised another bailout?

reply to post by camaro68ss


Not true for one reason .......

Mark To Market.

Congress in 2009 changed the Mark To Market law that required the depreciation of assets/liabilities to be balanced on the banks SEC reportings. Back in 2007-2009 we constantly, every quarter heard the term "Write Down" this is when the bank "writes down" the value of a home because it foreclosed or defaulted.

Now banks only have to list as assets the homes original value.. no longer depreciation or defaults.

However you are right in that every single major bank is technically bankrupt because of this crisis. If Mark To Market were reversed banks would be writing down well over 1+ trillion in liabilities.

Could someone please explain to me why it's not possible to simply do this:

The government cuts a check that can only go to paying off the house.....the bank gets paid...the person owning the house will still be able to pay taxes and stay in the house (should)....and the losses are gone.

Why can't this be done? Why wasn't this done the first time? Would this have a devastating effect on the economy?

It's nothing but numbers on a computer screen. You could take the transactions and wipe the slate clean with a few keystrokes.

Why? This is a serious question. If there is a crazy outcome for this happening...what is it?

It appears to me that most of the people I know that are "squatting" are the families that could barely squeak by on the financing and got FHA (Government backed) loans.

I think it is the US Government, taxpayers, who will again take it in the shorts. These banks will simply charge off the loans an look to the FED for settlement. Collapse likely and this may be a catalyst but it will take a global effort to completely collapse the US. I'm talking downward pressure for years not a quarter. It's the global market that fuels the DOW and vise versa it is certainly a symbiancy.

When the USD is no longer the world reserve currency I'd say collapse is eminent.

My 2€

reply to post by AuntB

Originally posted by AuntB
reply to post by camaro68ss

 

Your friend is very correct. There are many houses out there but the banks are holding them back due to worries of flooding the market. We had been looking at buying HUD houses, fixing them and renting because rentals are hot right now because no one can buy. The true standing of the country is very scary to me.

I know people who can afford to buy, but aren't. They have chosen to rent simply because they want to be free to move if they have to. This is a scary time to think about owning a home. If you must move because of a job or your financial circumstances suddenly change, a person could very well be chained to a home which has lost its value or which is un-sellable in this current market.

Unless you can afford to pay off your home in full, home ownership does not provide the security that it once was touted to hold. It does not belong to the "home owner".

reply to post by Ace High


Government insider? More like a banker, no? Either way, his story you told us goes along with a story on Infowars.com about middle class families soon being homeless living either in their cars or in tents, and since there will be so many families homeless tent cities will begin to spring up. In the article a family was interviewed who have two small children and they are living out of their car for 3 weeks or so. They never thought in a million years they'd be where they are now. They also go on to mention all the obvious laws against tents communities, basically being homeless. If you're a homeless American you can go F! yourself, so Uncle Sam says...

reply to post by idunno12


I make enough to afford a house and choose to rent at this time. My reasons are quite simple:

I believe that homes are over inflated in my area (Los Angeles).
I live alone and do not have the need to consume a large amount of space.
To me, the tax write off on the interest does not outperform the additional fees and expenses of home ownership.(insurance, property tax, additional utilities,...)
I feel the equity and principle that I would be building in a house will not outperfom my current investment model in the stock/bond/commodities market.
I feel that housing is going to fall and fall hard. I don't see how interest rates can get lower and so they must rise.
I agree that we have yet to feel the true weight of the foreclosures. This will be a major event in our economy, one that I do not think Quantitative Easing (3) will fix.
I feel, at this time, comfortable with the exposure to real estate that I get out of REITs.

I am not an investment banker or business manager but I currently feel happy with my personal financial situation.

Hey, I love clams as much as the next guy, but this is a serious subject matter.

Never mix business and clams. Never.

I'm not sure if said gun owner is telling the truth or not...i'm not in a position to say either way. however, what he says is completely plausible. it's not a matter of IF the dollar collapses, but WHEN the dollar collapses. there is no way the govt can operate at deficit of some TRILLION dollars and be successful.

the govt spends, spends, spends. it throws money at the military machine that sticks its nose where it doesnt need to. it bails out the banks, the airlines, the auto industry. these are industries that should be allowed to go bankrupt, because obviously their current system of running a business isn't working.

now, instead of cutting spending the Fed Res just prints more money! the more paper money there is going around, the less value it has. this country can't pay on its loans that it has with other countries. before you know it, the govt is going to need a bailout and who's going to bail them out?? a foreign investor/country? if that happens...welcome to your new ruling country. is the govt going to file bankruptcy? if that happens, the dollar will be worth less than toilet paper.

this is why certain people are pushing for a one world bank/currency. its my belief that it will happen sooner than later. everyone will be issued a credit card with credits and that will be your monetary unit...credits. there will no longer be paper/coin money, it will all be electronic transactions.

a one world bank is just one step closer to a one world govt. scary stuff.

the only financial collapse you should be worried about is yours, because you can be sure the only bank account the wealthiest people on earth care about is their own.

reply to post by David9176


Because it would destroy the US economy. Banks need debtors. The US needs banks. For every penny the banks loose on debtors, the USA looses on Financiers of it's debt. Without banks making a ton of cash on the peons the US economy will not exist. Think .... 2008 perpetually.

Originally posted by David9176
Could someone please explain to me why it's not possible to simply do this:

The government cuts a check that can only go to paying off the house.....the bank gets paid...the person owning the house will still be able to pay taxes and stay in the house (should)....and the losses are gone.

Why can't this be done? Why wasn't this done the first time? Would this have a devastating effect on the economy?

It's nothing but numbers on a computer screen. You could take the transactions and wipe the slate clean with a few keystrokes.

Why? This is a serious question. If there is a crazy outcome for this happening...what is it?

The problem with the government writing checks and giving the money out for free will feather increase our debt and it would not be fair to those who made the right choice and did not over extend themselves. But who says we live in a fair world anymore

reply to post by camaro68ss


did we ever live in a fair world?