Financial drop in S&P: Will look like August 2004

by **NoWorries** » Thu 10 Jul 2008, 14:20:00

http://www.bloomberg.com/apps/news?pid= ... refer=home

Whew! That's a relief. I was afraid things were going to look like 1929. :cry:

by **SoylentGreen** » Fri 11 Jul 2008, 09:02:55

I have been a freddie Mac/subprime auditor for the last 4 years. trust me, its gonna look more like 10/1929. Freddie and Fannie are all but insolvent. Indy is out of business.the problem....foriegn investment.Nobody wants to invest in the US anymore and I dont blame them.

by **Fiddlerdave** » Sat 12 Jul 2008, 05:49:55

$this->bbcode_second_pass_quote('NoWorries', 'h')ttp://www.bloomberg.com/apps/news?pid=20601213&sid=au9lYw3WnbS8&refer=home

Whew! That's a relief. I was afraid things were going to look like 1929. :cry:

by **CarlosFerreira** » Sat 12 Jul 2008, 06:23:36

$this->bbcode_second_pass_quote('SoylentGreen', 'I') have been a freddie Mac/subprime auditor for the last 4 years. trust me, its gonna look more like 10/1929. Freddie and Fannie are all but insolvent. Indy is out of business.the problem....foriegn investment.Nobody wants to invest in the US anymore and I dont blame them.

by **SoylentGreen** » Sat 12 Jul 2008, 11:16:25

IndyMac is also a bank. This is the 1st time I am aware of since the 1930's depositors are going to loose $ in deposits.
FDIC gaurantees $100,000. In this case ,if you have more than that which about 10,000 customers do, they will only get 1/2 of theyre money beyond $100,000 and must file a claim with the FDIC.
Maybe they will get it,maybe they wont. More bank failures are imminent. If you have more than $100K in one bank, you need to spread it around?
Without more mega foriegn investment,I dont see how we are going to unplug this comode?
Moronically liberal Stated Income loans since 2002 made by Fannie Freddie and big investment houses Bear Sterns and Lehman among others have gone bad in such quantities, no foriegn investor will touch the US with a 3 metre pole.(10 foot)
Fannie Mae and Freddie Mac started the retardedly liberal lending underwriting standards and there is still no talk of crucifying the people in charge.
They should be treated like the executives of WorldCom,HealthSouth,Enron and Tyco.Prosecute them, lock them up, find and seize thier assets.At least that would be a sign of trying to solve the problem from the roots and maybe we can go forward from there.
The folks on the top floor of Fannie and Freddie are as guilty and have caused the country more damage than anybody since the great depression.

by **BigTex** » Sat 12 Jul 2008, 13:03:02

Since the S&P has no aerodynamic qualities (of which I am aware), it will do what any ballistic object does when it runs out of fuel or momentum--it will fall...

And it will continue falling until more propellant is provided.

The question is: what will the propellant be?

Historically, the propellant has ALWAYS been cheap energy (short term bursts can be provided through cheap credit as well). Since there is no reason to believe that cheap energy is anywhere on the future horizon (and we have already done the cheap credit thing), there is no propellant that I can see anywhere in the future.

Does anyone else see propellant for more upward movement?

by **DantesPeak** » Sat 12 Jul 2008, 14:09:59

$this->bbcode_second_pass_quote('BigTex', '
')
Does anyone else see propellant for more upward movement?

by **SoylentGreen** » Sun 13 Jul 2008, 13:11:10

90 US banks have been put on "FDIC watch list". I havent been able to find a list of these institutions. To be put on the FDIC watch list, loan portfolio delinquencies over 90 days has to be major and the reserves to deal with them, doubtful.

by **DantesPeak** » Sun 13 Jul 2008, 13:21:25

$this->bbcode_second_pass_quote('SoylentGreen', '9')0 US banks have been put on "FDIC watch list". I havent been able to find a list of these institutions. To be put on the FDIC watch list, loan portfolio delinquencies over 90 days has to be major and the reserves to deal with them, doubtful.

by **SoylentGreen** » Sun 13 Jul 2008, 13:27:57

Im not aware of anywhere close to that may banks on the watch list in FDIC's history ?

by **BigTex** » Sun 13 Jul 2008, 16:54:59

$this->bbcode_second_pass_quote('DantesPeak', 'T')he stocks of many financial related companies may well eventually go to zero. But the stocks of unleveraged companies and especially natural resource firms may do well as the next wave of Fed induced inflation spreads.

The potential problem later with natural resource, oil service, etc., issues is that since mostly only companies making money pay tax, there will be a great effort to raise the tax on that group due to their 'windfall' profits.

by **DantesPeak** » Sun 13 Jul 2008, 17:09:39

$this->bbcode_second_pass_quote('BigTex', '')$this->bbcode_second_pass_quote('DantesPeak', 'T')he stocks of many financial related companies may well eventually go to zero. But the stocks of unleveraged companies and especially natural resource firms may do well as the next wave of Fed induced inflation spreads.

The potential problem later with natural resource, oil service, etc., issues is that since mostly only companies making money pay tax, there will be a great effort to raise the tax on that group due to their 'windfall' profits.

by **BigTex** » Sun 13 Jul 2008, 17:17:22

$this->bbcode_second_pass_quote('DantesPeak', 'H')owever because the US Treasury bond market serves as a financial hedge to the even larger mortgage market, the actual yield of bonds at 4% reflects more the lack of investment alternatives and mortgage hedging than inflation.

by **SoylentGreen** » Sun 13 Jul 2008, 18:08:14

On the Natural resources side..... I still think Nat Gas, Canadian Oil Sands and N. American Coal have more upside because there is so much of it and the fact that America and most industrialized nations will depend on those fossil fuel sources more as conventional Oil gets harder to get out of the ground.

another side note...the just failed IndyMac Bank wasnt even on the FDIC watch list....??????

by **SoylentGreen** » Mon 14 Jul 2008, 20:12:35

Now the news is saying 150 US banks could fail.So how much more feces has to hit the fan to cause a depression?

by **SoylentGreen** » Tue 15 Jul 2008, 22:14:38

Im hearing Wachovia and US Bancorp are all but toast, Wash. Mutual in deep doodoo too

by **SoylentGreen** » Thu 17 Jul 2008, 07:59:54

Five Top Stories on Yahoo Business??????8am 7/17/08
> JP Morgan Profits down 53% in 2nd Qtr. due to bad loans
> Coca Cola profit drops 23% in 2nd Qtr
> Continental Airlines has loss in 2nd Qtr due to fuel costs.
> How Bad is it? Some say worse since great depression.
> Stocks Head Higher on Upbeat earnings results.

WTF?

SEC also prohibited naked short selling on 19 stocks. Lehman,Bear Sterns,Fannie Mae ,Freedie Mac, and 15 other financial companies who are responsible for the martgage crisis. Last time SEC did this....1931.

Financial drop in S&P: Will look like August 2004

Financial drop in S&P: Will look like August 2004

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