Yes the dawn rises, the already sataurated housing market which hasn't responded to all the gimmicks and stimulus nor record low rates. There is the "SHADOW INVENTORY" the banks hold off the market like the Russians keeping diamonds in underground vaults to suppress supply and keep prices high....as Debeers raises their advertising budget....show her you LOVE HER.
And the demographics of baby boomers now just coming onto the scene, and many want to DOWNSIZE, just around the time prices have crashed and that NEW inventory will be met with a generational buyers market.....deflation of housing may be here for awhile...and our problems which are not being dealt with by those in power.....will not go away.
But the bankers are connected, you are not. There are so many to thank for FOISTING THEIR debts and BAD BETS on the PUBLIC.....I don't have enough space....I DO know not one single person has been brought to justice.....do you ever wonder why the major banks and finacials didn't have their top guys replaced?....an honest man put in place would uncover TOO MUCH...and they don't want you to know....too much
D
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Take government backing away from Fannie and Freddie and lets see what happens. In fact the government knows what will happen and is desperately trying to backstop all inefficient entities to prevent a complete collapse of asset prices.
Funny thing is a fews years ago the government was for "affordable housing" . Both the republican president Bush and Democratic senators were key to push affordable housing. Well if they really want "affordable housing" just step out of the way! We have have affordable housing in months!
[url=http://www.youtube.com/watch?v=iW5qKYfqALE#normal]Barney Frank in 2005: What Housing Bubble?[/url]
Take a listen to what Barney Frank said in 2005. He is Chairman of House Financing COmmittee now! Which is why I hate both parties because they both game the system for their own profit. If Obama had a backbone Barney Frank should be in jail for ruining millions of lives. Obama is just as stupid or maybe just as big a con artist as George Bush. He kept Bernanke as Fed chairman instead of sending him to prison to keep the ponzi system going. He made the New york Fed chief his treasury secretary! As chief of New york fed it was his job to keep an eye on wall street. Can we have more blatant fraud? When he talks to the public he talks as if wall street is the enemy. But internally Obama has gone to extreme lengths to ensure all the ponzi schemes keep humming. He keeps the miltary industrial complex alive by continuing to wage wars we cannot afford.
[url=http://www.youtube.com/watch?v=kNqQx7sjoS8#normal]Home Ownership and President Bush[/url]
Take a listen to the Joker called Bush about affordable housing. After he messed up everything Americans gave him a second term! Americans deserve to be in depression for their stupidity.
We have already had more than two decades of inflation. Its time to pay the piper. Now we are headed for deflation. Those who argue otherwise do not understand how our monetary system works.
Money is borne as debt. If the Fed lends the banks a trillion dollars the only way we can have inflation is when there are enough fools in the population who are willing to borrow 10 trillion dollars worth of debt. Look around you in the US and ask who is now willing to go into more debt like people used to do in 2002-2007. When people decline debt then what we have is a falling money supply. That is the engine of deflation. People go bankrupt. People dont pay their mortgages. They pay down debt. This causes the money supply to shrink at an alarming pace. There is nothing the Fed can do to fix the problem. They can theoretically byppass the banks and drop money out of helicopers in the sky and create a Weimar Republic situation. Somehow I dont see that happening. The Fed is "pushing on a string". They cannot create inflation even if they desperately want to. Its impossible in the current monetary syatem.
The only entity left that is willing to go into debt is of course the Federal government. And trust me they are working hard at it. 1.3 trillion dollars of debt a year and more is simply not enough. Sure they can borrow 10 trillion a year and create inflation. However before that happens the bond markets will stop them. Either way I see years of deflation ahead.
Take government backing away from Fannie and Freddie and lets see what happens. In fact the government knows what will happen and is desperately trying to backstop all inefficient entities to prevent a complete collapse of asset prices.
Funny thing is a fews years ago the government was for "affordable housing" . Both the republican president Bush and Democratic senators were key to push affordable housing. Well if they really want "affordable housing" just step out of the way! We have have affordable housing in months!
http://www.youtube.com/watch?v=iW5qKYfqALE#normal]Barney Frank in 2005: What Housing Bubble?
Take a listen to what Barney Frank said in 2005. He is Chairman of House Financing COmmittee now! Which is why I hate both parties because they both game the system for their own profit. If Obama had a backbone Barney Frank should be in jail for ruining millions of lives. Obama is just as stupid or maybe just as big a con artist as George Bush. He kept Bernanke as Fed chairman instead of sending him to prison to keep the ponzi system going. He made the New york Fed chief his treasury secretary! As chief of New york fed it was his job to keep an eye on wall street. Can we have more blatant fraud? When he talks to the public he talks as if wall street is the enemy. But internally Obama has gone to extreme lengths to ensure all the ponzi schemes keep humming. He keeps the miltary industrial complex alive by continuing to wage wars we cannot afford.
http://www.youtube.com/watch?v=kNqQx7sjoS8#normal]Home Ownership and President Bush
Take a listen to the Joker called Bush about affordable housing. After he messed up everything Americans gave him a second term! Americans deserve to be in depression for their stupidity. Who do you want to see put in jail? President Bush? Barney Frank? Greedy Joe down the street who got a loan to buy a house with no income and lied on the income statement? Fannie Mae? Freddie Mac? The bankers? Is this any different than whats going on in Canada now? Is this any different than whats going on in Australia now?
http://www.greaterfool.ca/
http://www.debtdeflation.com/blogs/2010/06/17/grantham-on-the-australian-housing-market/
D you want the Canadian central bank in jail? The RBA maybe? Who are you kidding? Havent we always played these games in every century and in every country? All you need to know is whose backside is saved when every one of these bubbles burst. Yes the bankers! The truth will set you free my friend so you dont need to get frustrated!
We have already had more than two decades of inflation. Its time to pay the piper. Now we are headed for deflation. Those who argue otherwise do not understand how our monetary system works.
Money is borne as debt. If the Fed lends the banks a trillion dollars the only way we can have inflation is when there are enough fools in the population who are willing to borrow 10 trillion dollars worth of debt. Look around you in the US and ask who is now willing to go into more debt like people used to do in 2002-2007. When people decline debt then what we have is a falling money supply. That is the engine of deflation. People go bankrupt. People dont pay their mortgages. They pay down debt. This causes the money supply to shrink at an alarming pace. There is nothing the Fed can do to fix the problem. They can theoretically byppass the banks and drop money out of helicopers in the sky and create a Weimar Republic situation. Somehow I dont see that happening. The Fed is "pushing on a string". They cannot create inflation even if they desperately want to. Its impossible in the current monetary syatem.
The only entity left that is willing to go into debt is of course the Federal government. And trust me they are working hard at it. 1.3 trillion dollars of debt a year and more is simply not enough. Sure they can borrow 10 trillion a year and create inflation. However before that happens the bond markets will stop them. Either way I see years of deflation ahead.
Yes, I have highlighted Bernanke's ineptitude in a youtube video (what he said when he said it)
in 2006 "I don't see a huge problem in mortgages and housing, there has never been yr/yr loss of housing values....." never say never....."never saw this coming" and don't forget Paulson though many see him as hero....Geithner....Summers....etc etc....Obama's "CHANGE" was another litany of campaign slogans...as only one face changed.
The 2ndry mkt for mortgages is broken....there is only the FED/GOV.
No way for me to tell, but if you read the weekly DOug Noland essays I post, especially this week....he is right on what is actually happening...one of the few.
Frank? ELmer Fudd in drag....disgusting.....you can delay the day of reckoning,but they're just piling on now...$80 oil, WHeat doubling last few months....dislocations have a way of biting them and us in the ass....the next crisis my friend we will find a PIT BULL on that ass.
You are obviously more aware than most....and I'll keep trying to wake up as many as I can.
Sometimes I go away from rants, personal opinions and focus on charts and TA.....100% rants and excessive pessimistic reading...can make one go crazy, even I have level of what I can stand.
ALL is not lost...MUCH is lost....only the highly skilled few going forward will escape a huge downward revision in living standards.
I have twice tried to warn investors of the bear markets....what it can do to a LTBH philosophy....and in the financial planning universe, how many aren't on board that?
http://www.howestreet.com/articles_as_pdf/2010Aug05145928454918-Canadian-Housing-Bubble(2).pdf
Good article on Canadian bubble.
http://www.greaterfool.ca/
http://www.debtdeflation.com/blogs/2010/06/17/grantham-on-the-australian-housing-market/
Garth Turner and Steve Keen have been warning of bubbles in Canada and Australia respectively. Central bankers playing the same game in cahoots with the politicians. Guess who is going to pay when those bubbles burst? Bankers?
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