Dr. Housing Bubble 06/29/08

[Crewleader]

The Trillion Dollar Question: Looking at the Exact Items That will Cause $1 Trillion in Write-down Losses.

It is becoming rather apparent that the economy is now of the cusp of flying out of control. The Federal Reserve under the tenure of Alan Greenspan always carried an aurora of power that whenever things got silly in the market, the maestro Greenspan would quickly take center stage in D.C. and calm the markets. No one really understood what he was saying most of the time but the markets usually responded to his words. Yet Greenspan was essentially the Wizard of Oz, keeping the Ponzi scheme going until the very verge of the market implosion. No one really believes that the entire credit market meltdown is Ben Bernanke’s fault. Yet many do believe that Greenspan and Bernanke are essentially cut from the same cloth.

The economy is under pressure given that this June has been the worst month for the markets since 1930, during the Great Depression. There is a major significance to this aside from the psychological association to one of the worst financial moments in our country’s history. The major reason this plays on the overall market psyche is that it is hard to keep bamboozling the public into believing all is well and we are not in a recession when the following is occurring:

-$140/bbl oil and $4+ Gas at the Pump

-Rising Grocery Costs

-Healthcare costs sky rocketing

-Home prices crashing across the country

-Credit card defaults rising

-Unemployment rising for consecutive months

-An unpopular war

We can go on, but now you have a sense why consumer confidence is at a multi-decade low. The popularity of the President and the current Congress are at historical lows. The past week was significant as well since the market briefly flirted with Bear market territory. That is, we are nearly 20% off from the peaks reached in early October of 2007. Now whether reaching the number is important, we are only a few points off and we are going to be entering earnings season in July given that the first quarter comes to an end on Monday.

http://www.doctorhousingbubble.com/the-trillion-dollar-question-looking-at-the-exact-items-that-will-cause-1-trillion-in-write-down-losses/

[NMDemDist2]

1. there you are! DrHB was just asking about you in his thread

but I see you saw that

:hi: