• beyondtheveil said on Mar 28, 2009....

  They're probably going to sweep the bad assets under the carpet and pretend they aren't there, build another economy out of air like the last one, make bankers even more rich, get the American people to spend and bloat credit cards all over like they did.
  
  In the meantime, the bankers and politicians will buy an island, build mansions, and after the next collapse move there and spend a lot of time on yachts with martinis and blonds.
  
  But that's just a guess.
  

• D6fer said on Mar 28, 2009....

  How do you think China is going to handle all of this? They stand to lose more than anyone else right?

• curmudgeon said on Mar 28, 2009....

  A huge question mark is exactly how toxic the assets are. The problem is that because these mortgages were pooled together, divvied up and sold off without really telling anyone what the real risk of any of the individual mortgages were, my guess is people are assuming the worst.
  
  Why this plummeted so much of the world's economy is kind of ridiculous - it's all about risk to earnings ratios and how these toxic assets are valued on the balance sheet rather than what's really going wrong and what's not.
  
  Here's what's so stupid about this whole fiasco: If the idea was to get people into affordable homes, all the government had to do was purchase abandoned and foreclosed homes at far below market prices and then hold a yearly lottery for low-income people who qualified- American citizens with low-paying jobs, whatever. The winners would get a home free and clear, which they could turn around and sell if they wanted, thus creating automatic wealth for themselves.
  
  I'm sure this is problematic on many levels, but the biggest problem is that no one on top makes any money at all. The bankers would rather sell homes at ballooning interest to people who can't afford them so that the banks can rake in cash before the crash.
  
  With the tech boom and bust and now the housing boom and bust, one must wonder whether the global market has become one huge ponzi scheme. Now the next boom and bust will be "greening" the economy.
  
  It will go this way: After investing billions upon billions of dollars on a smart grid, solar paneling, wind farming and so on, energy will either be so expensive it kills the economy or it becomes so cheap that it doesn't turn in a profit, thus creating a disincentive to maintain and expand infrastructure. Probably it will be the former, because even as the price of oil goes up again, the eco-wackos will fight solar and wind farms at every twist and turn.
  
  The only thing we can hope for is for someone sensible to come up with something of real value that people can invest in for the long term. But with Obama and his blockheaded puppet Geithner in DC for three years and many months, chances are China will dump our currency and team up with Russia and India to come up with some other means of securing their investments.
  

• D6fer said on Mar 28, 2009....

  It's like they are ripping us off right before our eyes and telling us that they are not.....I just don't get it.....none of it makes sense.

• curmudgeon said on Apr 03, 2009....

  What's more - yesterday articles began appearing that the recession may have bottomed out. The Dow went up over 8000. This is all before the bulk of these "economic stimulus" programs have taken effect. What will happen when, just as we're recovering, taxes get raised, more spending goes through the roof, and the value of the dollar plummets?

• D6fer said on Apr 03, 2009....

  riots?

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