The worst is yet to come

[G_j]

Nouriel Roubini who predicted the crisis, talks to Bloomburg news about a New Deal.


watch, http://www.maybememe.com/post/60905775

[Warpy]

1. The jumbo and Alt-A loans extended through 2006

will all reset next year through the first couple of months of 2010. There won't be much relief until that process has been completed. Only when banks and other institutions know the real extent of their losses will they be motivated to free up credit again, which is something that Paulson has never understood. Throwing money at them now isn't helping the credit crunch. It is shoring up their balance sheets for the catastrophe that will come next year.

After next year, most of the funny money will be gone from the housing sector. There will still be too much inventory, though, so prices won't recover for some time to come and will likely keep eroding over the next several years.

The Dow, which I predicted to be 7000 by the time Stupid left office (and it looks like I was optimistic) will continue to fall for the next couple of years, through the floor and into the basement. No one knows where the floor is because no one knows what true inflation has been.

However, if the demand side is addressed the way Roubini suggests it should be, the mess will be a deep recession. If it isn't, we'll go all the way to another depression.

[maxsolomon]

2. never mind

the video wasn't there when i 1st went. now i'm really worried & i need a new skill set.

[G_j]

3. what is?

[midnight]

4. Of course the worst is to come. Family supporting jobs have

been dispersed overseas and worker visas take care of the rest of the workers whos salaries are kept low. The icing on the cake is taking our tax dollars and feeding the rich.

[G_j]

5. k