Second Financial Economic Crash Coming - Huge & Soon

[Mark Kerr]

We're fuvked.

[Soul Crusher]

We're fuvked.

I am a small business owner and feel the same way as this article.  Things are going to get far worse before it gets better any time soon. 

Businesses and individuals are so loaded up with debt there is nowhere left to go.

I see housing having to go down at least another 30-40 percent things turn around, if not more.

[Bindare_Dundat]

Bernanke and Paulson and 99% of the politicians: "No one could see this coming." 

Americans had their chance with Ron Paul but instead they laughed at him and some morons on this board still laugh at him and call him crazy. Unbelievable. It's too bad the ones laughing are the ones that are sucking everyone else down by voting/voted  for douchbags like McCain or slick talkers like Obama or politicians that share their philosophy.

A year ago.

Paul comments after McCain and Romney suggested we are better off economically today.

[Soul Crusher]

People made the huge gambles in Real Estate on the basis that the prices would never go down. 

However, those gambles have no gone bad.

Additionally, R/E was no different than the Maddoff ponzi scheme.  The flippers, R/E agents, mortgage brokers, and speculators all figured that there was another fool to keep paying higher and higher prices for the same homes.

However, peoples incomes did not go up at the same ration and the only way to finance these purchases was through crazy mortgage instruments that were sent on to other banks only backed up by inflated and bogus appraisals. 

The chickens of a few decades of outright gambling are coming home to roost.   

[Hedgehog]

Americans had their chance with Ron Paul but instead they laughed at him and some morons on this board still laugh at him and call him crazy.

Someone who says the best thing to do is to just let everything collapse, let the market regulate itself is clearly not all there.

The "Market" has been de-regulated over the years and finally we arrive at this.

Ron Paul's cure: De-regulate some more.


He also believe that if we let everything just take care of itself, it will be over in a year.

How is that gonna work out for blue collar workers, for people with mortgages on their homes, et al?

If tens of millions of people start losing their jobs, there's a new Depression.


Also look at how Hoover decided it was best to let the market regulate itself and use a minimalist financial politics.

Then compare that to Ron Paul's ideas.

And also compare both of them to Franklin D Roosevelt and the "New Deal".


Not to mention, Ron Paul's a bible thumper (like Obama and McCain).


I've said it before: The big problem is that the budget during the booming years of the economy weren't run with a surplus and/or with political reforms that would chill down the overheated economy like eg tax raises and lowered economical subsidies.

The fed rate were way too low as well. A higher fed rate would've encouraged people to save money instead of spending it and loaning.

Low fed rate - low rates at the bank, both for saving and loaning. Few incitements to save.

High fed rate - results that the banks and loaning institutes raises their rates, both for saving and loaning. Suddenly it's not as good business to loan money.

[Soul Crusher]

You are 10000% incorrect.  The market was very regulated and the Federal Reserve, through manipulation of the interest rates helped this mess along.

The problem is not lack of regulation, it is lack of regulators doing their jobs.

Same as guns, we have over 20,000 gun laws, the issue is not laws but enfocrment.

To my knowledge, submitting a fraudulent mortgage application to a bank is a crime.  Has one mortgage broker gone to jail yet??

The SEC was warned in 1999 about Madoff and then again in 2005.  They did nothing. 

The laws and regulations are there, the issue is lack of enforcement.     

[Bindare_Dundat]

Someone who says the best thing to do is to just let everything collapse, let the market regulate itself is clearly not all there.

The "Market" has been de-regulated over the years and finally we arrive at this.

Ron Paul's cure: De-regulate some more.


He also believe that if we let everything just take care of itself, it will be over in a year.

How is that gonna work out for blue collar workers, for people with mortgages on their homes, et al?

If tens of millions of people start losing their jobs, there's a new Depression.


Also look at how Hoover decided it was best to let the market regulate itself and use a minimalist financial politics.

Then compare that to Ron Paul's ideas.

And also compare both of them to Franklin D Roosevelt and the "New Deal".


Not to mention, Ron Paul's a bible thumper (like Obama and McCain).


I've said it before: The big problem is that the budget during the booming years of the economy weren't run with a surplus and/or with political reforms that would chill down the overheated economy like eg tax raises and lowered economical subsidies.

The fed rate were way too low as well. A higher fed rate would've encouraged people to save money instead of spending it and loaning.

Low fed rate - low rates at the bank, both for saving and loaning. Few incitements to save.

High fed rate - results that the banks and loaning institutes raises their rates, both for saving and loaning. Suddenly it's not as good business to loan money.

Do you even watch the videos I post? Did you read any of his books? Just curious.

[Bindare_Dundat]

Unemployment claims highest since '82

Number of Americans filing for state unemployment benefits rises to a 26-year high of 586,000, according to Labor Department.

[Nordic Superman]

Do you even watch the videos I post? Did you read any of his books? Just curious.

You expect people to read a book to formulate responses to your posts on Getbig?

[Bindare_Dundat]

You expect people to read a book to formulate responses to your posts on Getbig?

No expectations for him to read the books but it seems to me he formulates his opinion through the media and not from the man himself. I'd like to know where Ron said the best solution for the economy is to do nothing. I must have missed it.

[Nordic Superman]

No expectations for him to read the books but it seems to me he formulates his opinion through the media and not from the man himself. I'd like to know where Ron said the best solution for the economy is to do nothing. I must have missed it.

Fair enough.

[Soul Crusher]

Fair enough.

The politicians and socialists are no different than alcoholics thinking the cure is just one more drink.

It is a pavlovian situation where these bums make the problems worse and then claim to have the cure only by doing more of the same, over and over and over again.

Ron Paul, and especially his advisor, Peter Schiff, have been 1000% accurate on financial matters.

[Nordic Superman]

The politicians and socialists are no different than alcoholics thinking the cure is just one more drink.

It is a pavlovian situation where these bums make the problems worse and then claim to have the cure only by doing more of the same, over and over and over again.

Ron Paul, and especially his advisor, Peter Schiff, have been 1000% accurate on financial matters.

Don't get me wrong, I'm a fan of certain aspects of Ron Paul and what he proposes.

[Dos Equis]

People made the huge gambles in Real Estate on the basis that the prices would never go down. 

However, those gambles have no gone bad.

Additionally, R/E was no different than the Maddoff ponzi scheme.  The flippers, R/E agents, mortgage brokers, and speculators all figured that there was another fool to keep paying higher and higher prices for the same homes.

However, peoples incomes did not go up at the same ration and the only way to finance these purchases was through crazy mortgage instruments that were sent on to other banks only backed up by inflated and bogus appraisals. 

The chickens of a few decades of outright gambling are coming home to roost.   

Depending on where you invest, property values always eventually go up.  Those trying to flip properties and/or many wanting to sell may have problems, but those who buy and hold are fine.  The real estate market will correct itself.  Always does (depending on location).   

[War-Horse]

Homes will be forced to come down to honest values, or else they will not sell.   The price gouging and greed of all involved will have to be tightly regulated or this mess will happen again.   The excesses will be written off as losses and passed to taxpayers and will further our downfall.

Un regulated capitialism soon becomes a pyramid scheme that collapses when the bottom can no longer buy in to feed the top.

Mark my words.   The govt and states will bust the unions.(To make way for mexican labor)
                        The bailouts will lead to more bailouts and collapse the dollar soon.
                        The Amero will come in to save the day after civil unrest  (pissed off americans)
                        The canadian military will patrol our streets, legally.
                        You will be told how much a job pays and you will take it or starve, while 10 other guys
                         take it and smile.
                        This is a global economy now ,and fat cat americans will be forced to share homes, food
                        medicine etc.....




                                  Have a nice day.
                       

[Slapper]

[...]Additionally, R/E was no different than the Maddoff ponzi scheme.  The flippers, R/E agents, mortgage brokers, and speculators all figured that there was another fool to keep paying higher and higher prices for the same homes.

This is so true it ain't even funny.

You had so-called "experts" telling people it was OK to get a two million dollar loan to buy a property at 250% appraised value. When something alike is done by someone out on the street it is known as A SCAM.

Capitalism 101.
 

[Hedgehog]

No expectations for him to read the books but it seems to me he formulates his opinion through the media and not from the man himself. I'd like to know where Ron said the best solution for the economy is to do nothing. I must have missed it.

In an interview with CNN.
He's a regular contributor there with articles as well.
Ron Paul expressed the view that it was wrong to bail out the banks and that if we instead would let everything work itself out, the financial crisis would be over in a year.

That to me sounds very much like classic Hoover which ultimately led to disaster.

Ron Paul is a populist lightweight.
I haven't seen him suggest that taxes needs to be raised during good times and lowered during the bad times.
He only proposes lowering of taxes period.
Which may be popular to say, but irresponsible considering the need for DYNAMIC economic politics.   

[Bindare_Dundat]

In an interview with CNN.
He's a regular contributor there with articles as well.
Ron Paul expressed the view that it was wrong to bail out the banks and that if we instead would let everything work itself out, the financial crisis would be over in a year.

That to me sounds very much like classic Hoover which ultimately led to disaster.

 Could you please show me the article where he said everything will work itself out if we just do nothing. Thanks.

[Mark Kerr]

The 2nd Wave of Foreclosures has finally made it to the mainstream Media. CBS’s 60 Minutes had a segment on 12/14/08, but they missed a very important point.

I would like to bring a very important bit of information to your attention that relates to this economic crisis that was overlooked until now.

On Sunday, 12/14/08, CBS 60 Minutes aired a segment “The Mortgage Meltdown”.

Scott Pelley’s piece on the 2nd Wave of Foreclosures overlooked a critical fact.
The segment missed the fact that this next wave of Foreclosures in 2009 Will Take Self-Employed and Smaller Businesses who have these TOXIC mortgages. In fact, ALT-A, Option ARMS, Interest-Only, the TOXIC Mortgages that are considered the “Troubled” assets in TARP were specifically marketed to the self-employed who fell prey to them.

The upcoming defaults on these risky “Toxic Mortgages” will result in an increase in foreclosures. But worse, once these small businesses fail, the resulting loss of jobs will cause millions to add to the ranks of the unemployed. Note that self-employed business owners (16.2 million according to the SBA) employ between 1-10 employees.

An NASE survey at http://www.nase.org , was the first to provide compelling evidence of small business involvement in the upcoming toxic mortgage crisis. The survey was created by Prof. Samuel D. Bornstein and Jung I. Song, CPA of BornsteinSong Consultants in Oakhurst,NJ,and was conducted by the National Association for the Self-Employed (NASE) which issued a Press Release on November 21, 2008.

According to this survey, it is estimated that 3,709,800 small business owners hold Alt-A and other toxic mortgages, and 1,279,800 are already delinquent as they have missed one to three or more monthly mortgage payments at mid-November, before the expected Resets that are scheduled to begin in 4th Quarter 2008 through 2012.

These small business owners will be at-risk of payment shock and default as their monthly mortgage payments skyrocket. Small business owners were especially targeted for these Alt-A loans which required little or no documentation of income which appealed to many small business owners who previously were unable to qualify.

The resulting defaults will be the cause of the upcoming second tsunami wave of foreclosures that will dwarf the subprime crisis and will take many homeowners, small business owners, and their employees at this critical time when our economy can ill afford it.

[Soul Crusher]

In an interview with CNN.
He's a regular contributor there with articles as well.
Ron Paul expressed the view that it was wrong to bail out the banks and that if we instead would let everything work itself out, the financial crisis would be over in a year.

That to me sounds very much like classic Hoover which ultimately led to disaster.

Ron Paul is a populist lightweight.
I haven't seen him suggest that taxes needs to be raised during good times and lowered during the bad times.
He only proposes lowering of taxes period.
Which may be popular to say, but irresponsible considering the need for DYNAMIC economic politics.   

And I guess you are a socialist heavyweight??

[headhuntersix]

Homes will be forced to come down to honest values, or else they will not sell.   The price gouging and greed of all involved will have to be tightly regulated or this mess will happen again.   The excesses will be written off as losses and passed to taxpayers and will further our downfall.

Un regulated capitialism soon becomes a pyramid scheme that collapses when the bottom can no longer buy in to feed the top.

Mark my words.   The govt and states will bust the unions.(To make way for mexican labor)
                        The bailouts will lead to more bailouts and collapse the dollar soon.
                        The Amero will come in to save the day after civil unrest  (pissed off americans)
                        The canadian military will patrol our streets, legally.
                        You will be told how much a job pays and you will take it or starve, while 10 other guys
                         take it and smile.
                        This is a global economy now ,and fat cat americans will be forced to share homes, food
                        medicine etc.....




                                  Have a nice day.


All 60,000 thousand of them.
Obama wants to strengthen the Unions, not bust em. Very insightful.
                       

[Hedgehog]

Could you please show me the article where he said everything will work itself out if we just do nothing. Thanks.

I found it.

http://www.cnn.com/2008/POLITICS/10/01/paul.qanda/

So, we should get out of the way

[Hedgehog]

And I guess you are a socialist heavyweight??

I am no socialist, obviously.

But technically, yes, I am a heavyweight at the moment (weighing in at around 212 lbs currently, heavyweight class is usually 220 lbs).

[Bindare_Dundat]

I found it.

http://www.cnn.com/2008/POLITICS/10/01/paul.qanda/
 

 I reread an earlier post of yours and some of your comments I agree with. I only disagree with your "do nothing" statement.

Some of the underlined and bolded lines  Ron goes into plenty of detail of what needs to be changed or strengthed in those area's in his books. If you read them, you'll find it's far from doing nothing. My mistake is that I'm more familiar with his views so I can read a lot more into these types of interviews and assume everyone else can read deeper into what he means, but I can understand to a degree how you saw it differently. Unfortunalty, Im pressed for time, but I wouldn't mind discussing this in more detail when i can free some of it up.


Paul: So, we should get out of the way and not buy up bad debt. There's illiquid assets, but most of those are probably worthless. They're mostly derivatives. And we're sticking those with the taxpayer. So we have to recognize that the liquidation of debt is crucial. And if we did that, we would have tough times, there's no doubt about it, for a year. But if we keep propping a system up that's not viable, we're going to have a problem for decades, just like we did in the Depression. That's what we're on the verge of doing.


Roberts: So, instead of the bills that are currently before the Senate, the one that may be before the House as early as Thursday, what would you do?

Paul: Well, we need to do a lot, but a lot differently. We have to recognize how we got into this problem. We have too much debt. We have too much malinvestment. You have to liquidate those mistakes. Those mistakes were made due to monetary policy. So you have to allow the market to adjust prices downward. And that's what we're not allowing it to do.

If you had a market economy and then if you had a market-adjusted FDIC, where insurance was based on the strength of the bank, this would have happened on a daily basis. But instead, we insure everybody, no matter what the bank is doing, and we do it, either we overkill -- we give you too much credit on bad investments -- and then we make changes all of a sudden, and they're drastic, to what they have done.

So, it's impossible. It's either too little or too much. And what you need is insurance of, FDIC type of insurance, has to be driven by the marketplace to measure the viability of a bank.



 

[Bindare_Dundat]

I am no socialist, obviously.

But technically, yes, I am a heavyweight at the moment (weighing in at around 212 lbs currently, heavyweight class is usually 220 lbs).

Pretty much what we have discussed ont he boards.