The subprime mortgage crisis just the beginning?

We've only just begun to see people start ditching their houses. We have a lot more turbulence to look forward to. Despite the wild glee on Wall Street this past week that the worst is over. Best thing to do right now if you're looking to buy is absolutely nothing. Trying to catch a falling knife is a good way to lose your head.

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Of course, all those people stuck between rising mortgages and falling prices are free to follow Paulson's advice: Keep making payments on an outsized mortgage, and take a bullet for the greater economic good.

Take one for the team? Fuck Paulson. People have no moral obligation to ruin themselves for the general health of the economy. They should do what's right for themselves and their families.

The mere fact that this is mentioned as a remedy make's me want to spend my 600 USD tax rebate check on booze.

How ya doing, buddy?

Originally Posted by Arainach

One of the last products that you actually can buy American, ironically.

Too late to be bitter about NAFTA. We could always just elect another Clinton so those neo-liberals can destroy whatever is left. To be "fair and balanced" though, I doubt any presidential candidate will ever use the "p" word. It'd be so politically unpopular.

Oops, wrong forum!(?)

Originally Posted by Nehmi

Everything that I've read about on the sub-prime crisis indicates, to me, that most investment banks that even touched these things are gonna be insolvent. I mean look at the shit going down... we've got the Carlye Group tanking, Bear Sterns almost crashing the economy (thanks fed for accepting worthless bonds as collateral for your loans), and inflation is just freaking going crazy thanks to all this money being pumped into the system.

I think the major investment banks are already insolvent. Citibank blew through it's sugar money they got from the Saudi's. Now they're pissed. So pissed off they refuse to raise oil production. That, or they can't. Take your pick.

The whole point of the Fed's bailout was to prevent the destruction of the derivatives market. Which according to old-2007-Watts would cause a global economic catastrophe. That guy was so full of shit though. Gold over 800 USD? Hah, more like over 900. I was so optimistic then.

Originally Posted by Nehmi

I wonder which is worse, a depression based on deflation or inflation?

Ask the Germans.

There's nowhere I can't reach.

Originally Posted by Vestin

I love how all these idiots think it's really a "buyers market".

If you ask me, it's a "stay the fuck away from houses" market.

We're running out of oil. People are being laid off and companies are going under because of this. Soon we'll be in an economic depression!

But no, go right ahead and purchase a house. It's smart because pricing is down! You won't lose your house just like everyone else!

Smart!

I choose to blame myself for this post. Somebody moderate me for inciting panic.

Calm down guy, depressions don't exactly happen overnight. It take's a long grueling economic decline. The Great Depression just didn't happen with the stock market crash of '29.

This thing is sticky, and I don't like it. I don't appreciate it.