US Economy is in terrible shape

[Jaga]

the crisis now may be the worst in century.

several banks are bankrupted. Why? 7 mln from 14 mln lose their houses and their mortgages they took during the recent years.
Dollar is weak, money are spend on Iraq. We are over peak oil.

Do you really believe that aging McCain and Sarah Palin from Alaska, who do not even admit that Alaska received more earmarks than any other state under Palin - are the right team to lead America in this crisis???

[Jaga]

Greenspan told Bloomberg News he was "not in favor of financing tax cuts with borrowed money" when asked if the United States could afford big tax cuts such as those proposed by Republican John McCain.

[kaima]

They are avoiding a public bail out on this crisis, but in cases where the taxpayer has to take the risk while the private bankers make all of the profit, they should set the terms of a public bail out at the top 50, 100 or 500 officers of the bank paying in all of their previous three (or 5) years salary, bonuses and golden parachutes before public money is invested.

Just a thought.

[karl]

It would so appear, now dream world bubble in the financial world is collapsing into reality. The banking people in bed with the speculators in bed with the departments of realistate brokers are now facing the remains of a world they created. And, it is the people that will pay the price.

The price will be: More difficult terms of loans. Tightened controls of lending/credit card percentage of interest/tighter control of assets used as collateral.

The banking industry in the realestate market, were living in a created world built by them selves. Accomplished with the tools of deceit. Those tools were very simple and very much welcomed by the seller of property of both commercial and private. And with this, the buyer was pacified by the banking and lending institutions with easy credit; in some cases, tacit lies being over qualification of questionable buyers to the credit officers.

The next step in this scam, was: over appraisal of property beyond the market values. This in turn created:

Much more money to the seller of property, pleasing them more.

Much more commission amounts to the agent carrying the sale {Realestate agent and office take}

Much more in interest to the banking office for higher interest payments to cover the increased loan value of individual property sale.

Presently?

The former properties of question are returning to actual value.

Result?

The purchaser now finds that: They owe more on the mortgage, then the actual value of the property.

Further result?

The holder of the mortgage finds: With each default of mortgage, the bank is left holding a worthless portion of the loan they formerly offered on the inflated valued property.

Resulting: Screams and crys of foul by the mortgage industry for Federal help to bail them out. They wish to receive compensation for their losses they invented in the 1st place to the consumer. Now, then market banks are caught with their pants down in a cold wind blowing up their back sides.

What is occurring at present?

With the American Feds to lower whole sale interest rates, and infuse money into the market place to prop-up the dramatic losses encounter in the American stock exchange. The result is short time assistance. For this new money, is worth less then old money. The short fall is not much less then a prelude to eventual collapse as the laws of equalization of value/convertible assets sets in. In other words, actual value is not comparable to borrowed money of that interest is owed.

The international effect of this American financial experiment?

www.spiegel.de/international/business/0,1518,druck-578447,00.html

www.spiegel.de/international/business/0,1518,druck-578418,00.html

Karl

[nathanael]

OPEC has been quiet these days. They are lying low because they know that this global financial crisis is partially due to their reluctance to pump more oil. The world economies have suffered immensely as a result: "There's a complete lack of faith in the markets," Jim O'Neill, chief economist at Goldman Sachs, told Bloomberg News this morning. "There's a lot of cash-hoarding and people losing trust in banks, so the central banks are acting to relieve that. This might not be the last time they have to act." It's clearly is not over until it is over! By the way, the dollar is falling again ... in spite of low oil prices.

[Jaga]

I do not want OPEN to pump more than they already do. We went through so called peak oil. There will be not anymore oil available anymore. The reserves are shrinking.

Below is a very interesting commentary and explanation of what is going on by Ron Paul, a presidential candidate. He is an expert on economy and also a libertarian:

www.infowars.com/?p=4619