COMMENTS
A Financial System under Siege
New
"A Financial System Under Siege" is dead bang on. how 'bout those 'derivatives' that were sold by the trillions by those same greedy 'banksters' to the gullible & the greedy! I firmly believe that the plutocracy butt kisser at the Fed, bubble head Ben, could not raise the discount rate to 6.0% lest his bankster buddies and 'behind the curtain' bosses would have been immediately wiped out by the demand for payment by the derivative holders. A hedge against interest rate increases, huh! What greed -- what arrogance --- what thievery --- what the hell, its all over but the shower, pass the soap, if you have any.
Great article,
Keep up the integrity and honesty in your writings,
Greg
New
I read your article "A Financial system under siege",
and found it very interesting.
I buy into what you are trying to tell us, and I am trying to
think of more ways to prepare myself for what I think or feel is coming down
the tube. I will be ordering your book.
Could you direct me to any information on the western Canadian
real estate bubble? What sold for $100,000 three years ago is now on sale for
$350,000. It just can't stay this way, what will the next generation do?
None of the income of the 40 hour a week crowd has kept up to
this. I would like to think all bubbes evenually bust, but I hate to think of
all the ramifications that will follow if this"BUBBLE" does bust.
Canada's economy is tied pretty close to the states, but out here in B.C. and
Alberta, all of this real estater stuff (prices) is just crazy and totally
stupid.
There have been a lot of sawmills closed down in the last two
months, and I am concerned for my children's livelihoods. Please keep writing
your informative articles, I have looked and cannot find any information that
disagrees with you, except for maybe the odd cheerleader on CNBC.
Alan
_________________
Answer
by R.T.:
The
Canadian economy is in a much better shape than the US economy.
Canada's
problems come from the fact that 85% of its exports go to the US, and from a
Canadian dollar whose strength will contract the Canadian manufacturing sector.
So,
even if the US goes into a recession next year, this may only translate in
Canada as a slowdown.
With
the 2010 Olympics in Vancouver, the real estate market there should remain
strong. The Calgary market in Alberta, of course, is the hottest of them all,
but it may be overextended presently. One has to remember the Houston real
estate market in the '80s. It took a dive when oil prices stopped climbing. One
has to be careful.
The
overall real estate market in the US, and to a certain extent in some Canadian
regions, topped in 2005 and should decline until 2010-11. Until then, renting
may not be a bad option.
New
Posted, Sunday, November 18, 2007, 15:15 pm
I read your latest article on globalresearch.com. And I think you're right on. Since
you're Canadian, I'd like to know your opinion on how Canada will fare in light
of the mess happening in the States.
Many economic commentators have stated there's no chance of our
economy, in particular the real estate market, tanking like the US's.
Here's proof:
http://finance.sympatico.msn.ca/banking/mortgages/article.aspx?cp-documentid=5715439
In my readings, I've noticed several of them taking a rather
snotty tone as they intimate 'it's their problem, not ours'.
As
a mom with a large family who's been wanting to enter Alberta's home market (we
rent), I'm terrified of taking out a 40 year mortgage, have the rates jump and
be in the same boat as my American counterparts.
Junetta
New
I want to thank you and commend you for your work. Intelligent,
balanced commentary is indeed a rare commodity.
I forwarded your excellent article entitled "A Financial
System under Siege" to my friends/list with the following comment of my
own.
Forgive any undue, unwarranted reduction, extrapolation and
vulgarization of the economic systems you describe.
Best regards,
Serge
_________
MUST READ.
Exceptional Montreal-based economist, political activist and
intellectual. Imagine, every living American is currently indebted by 175,000$.
Oil may very well have to hit 200$ a barrel to finance this colossal
ponzi/pyramid scheme. He clearly identifies that the banking system has only
been impacted by being stuck with the last, relatively small unsold part of
'the bag' creating 'some losses' just as usually happens whenever a
pyramid/ponzi scheme comes to collapse/loss of confidence. The vast
losses/costs, as usual are "socialized" while profits have been
consistently "privatized".
When capitulation occurs, these privatized funds step in and pick up
assets for a song completing the process of shifting wealth from the majority
to a minute, extremely wealthy vulture minority. It is only then, that more
"socialized" money is injected in the system to subsidize/support
values, creating more public debt that allows the vultures to unload the
plundered loot on the mass that is brainwashed/taught to pursue the untenable
fictional 'American dream'. It is a heist, just as war is a "cost"/heist,
perpetrated mostly against the American treasury and people, leaving pure
profit to the warmongers and the imperial elite they serve. The
resources/spoils in the plundered/victim country is only the last cherry on the
cake that comes along with the slaughter so far of 1.3 million Iraqis, the
displacement as refugees of 4 million, the maiming of many, many millions more
and the destruction of several generations.
SN
New
Congratulations on the best explanation I've read yet on this
credit meltdown. Thank you. Most explanations use the term slice (and dice) and
I believe that is a reference to the term tranche. I don't yet fully understand
how packages of differing risk would be securitized.
What is the process of securitizing? Is it related to a stock
security?
A
second question. Given the obvious ponzification of our monetary system that
has occurred as of late and even long term as a result of fractional reserve
lending, I would assume that you agree that hard assets, gold etc, are the
place to be financially. I wonder if you've heard of the FBI raid on the
Liberty Dollar folks (a gold dealer I assume) and the consfiscation of a large
quantity of gold.
David
Answer by R.T.:
The
term "securitized" only means
"transformed into a security". It does not mean that the new asset is
"secured" or "guaranteed". The bank creates a bundle of
various mortgages and calls it a "collateralized bond
obligation" (CBO) or a "collateralized
loan obligation" (CLO) and then sells tranches of this new financial asset
at different prices and different yields, depending on the likelihood of
default. The lowest grade is called "toxic waste".
As
to private gold, remember that it was confiscated in 1934. Now, it is a good
hedge against fiat money inflation, as also it is the case for a few other
precious commodities. As long as governments run deficits and can print money
to finance them, there will be inflation.
New
What
will happen with the US$ ?
Is the Euro or CAD $ going to be stable or do they also pump in
money like in the US.
I know the EZB does, but what about the Canadian. And is Gold,
Silver, Yen and Swiss Francs the best to be in now?
And what will happen to the real estate in the US. Will it come as
it came in Argentina?
Juergen
Answer
by R.T.:
The
US dollar has been on slide for quite some time and is presently
"oversold". I would not be surprised to see it rebounding for a few
months, before resuming a fifth and final fifth leg down. The reverse applies
to the other currencies and to the price of gold.
Of
course, if the Bush-Cheney tandem bombs Iran in January or February (2008), the
price of oil will go way above $100 a barrel, and currencies such as the
Canadian dollar will skyrocket (for a while).
As
for real estate, the 18 year cycle peaked in 2005 (in the US) and the decline
usually lasts 5 or 6 years. This would mean a bottom around 2010-11.
New
I'm a semi-retired certifying scientist (toxicology), but my
passion is economics and history - and so, I do enjoy reading articles by those
who "get it" ! ( I'm actually hopeful of a major change in the US
"system", via an economic crisis / recession, as I don't see any
other way to bring change about.)
Eric
New
Posted,
Saturday, November 17, 2007, 00:09 am
As
a purely flippant comment on your article about the financial crisis in the
USA, all I can say is tough on all Americans. They deserve everything they get
for the way they live their lives. And just because it's a problem for
Americans, what makes them think that somehow the rest of the world will
suffer? The rest of the world is far bigger than they are and if it all goes
down the tubes because they can't keep up with their insatiable greed for
material objects. Then all I can
say is that they are truly a deluded society and I shall watch the unfolding of
the US Empire with some glee.
Alastair
New
Posted,
Friday, November 16, 2007, 18:55 pm
I
have been following the US financial crisis for several years and everyone
seems to agree that the US is in dire straits and that there will be dire
repercussions internationally.
To date every opinion that I have read has been from a US citizen.
You are the first Canadian that I have read with an opinion on this matter.
Would you have time to write an opinion on the effect that a US
economic collapse would have on Canada. I would certainly appreciate this and I
am sure that many other Canadians would also.
Clive
New
Posted, Friday, November 16, 2007, 21:34 pm
This is a rather decent article, I'd say you are nearly as good as
Jim Willie.
You two should get together to .....'chat'
That is if you are both not yet acquainted with each other.
Fine read with good 411.
jz
New
Posted, Thursday, November 15, 2007, 15:59 pm
Have
you ever heard of Leo Wanta?
There
has been a story developing and I wonder if you might have any comments?
The
details can be found at this website.
http://www.worldreports.org/news
Mike
New
Posted,
Thursday, November 15, 2007, 16:23 pm
What
are the implications for countries in South America, who are not so embroiled
with the US dollar/real estate crisis?
Daniel
Answer
by R.T.:
Well,
even if South American banks have little or no subprime loans outstanding, they
hold a lot of US dollars and they are losing purchasing power as the dollar
plummets.
And,
of course, most central banks have large foreign reserves in US dollars.
If
there is a recession next year in the USA (I think it has already begun), South
America will see their exports decline.
New
Posted,
Thursday, November 15, 2007, 19:52 pm
As
usual rigt to the pint/clear facts!
Thank
you,
Eva
New
Posted,
Thursday, November 15, 2007, 20:10 pm
Why
is there no information on the internet about protecting yourself when you know
people you have lent money to are going bankrupt. In my case, as it is a
personal loan, I am not protected at all, unless I can somehow prove that these
folks have defrauded me.
Where
can I get information on even how to try and charge them with fraud??
Carole
(Home:
TheNewAmericanEmpire.com)