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Just steady bleeding.

 

Keep in mind it is the pigmen lying on the Street bleeding to death. This market has no real shport. Certainly not the Fed, running around giving triage to the worst of the fatally wounded.

 

It's as close to a hopeless situation as I have ever seen. Why doesn't the Fed just open the liquidity floodgates. Because it knows it can't without triggering a hyperinflationary catastrophe.

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Just steady bleeding.

 

Keep in mind it is the pigmen lying on the Street bleeding to death. This market has no real shport. Certainly not the Fed, running around giving triage to the worst of the fatally wounded.

 

It's as close to a hopeless situation as I have ever seen.  Why doesn't the Fed just open the liquidity floodgates. Because it knows it can't without triggering a hyperinflationary catastrophe.

654779[/snapback]

 

if the FED is a quasi government agency then the majority will demand they open the flood gates

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if the FED is a quasi government agency then the majority will demand they open the flood gates

654780[/snapback]

is hyperinflation pretty?

Russ Winter keeps on saying about Egypt where they went on strike because food got too expensive. If they have brains and want to survive hyperinflation is not an option.

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if the FED is a quasi government agency then the majority will demand they open the flood gates

654780[/snapback]

 

 

No doubt.

 

The question is to what extent the Fed will resist. So far, they have held fast. I think that if we see a break in commodity prices, especially oil, the Fed would start pumping, but until that happens, I suspect that they will continue the current policy of not supplying sufficient liquidity for any market advance. They aren't even providing enough to cover debt service growth, which is why assets must continue to deflate, or in the case of commodities, begin to deflate. Maybe a few assets could continue to inflate, but I would think that the field of those inflating would rapidly narrow. I would think that the Fed would need to grow the monetary base by a 4-5% annual rate just to tread water, and they are nowhere near that. So sooner or later everything will break down. Then the Fed will start pumping.

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Just steady bleeding.

 

Keep in mind it is the pigmen lying on the Street bleeding to death. This market has no real shport. Certainly not the Fed, running around giving triage to the worst of the fatally wounded.

 

It's as close to a hopeless situation as I have ever seen.  Why doesn't the Fed just open the liquidity floodgates. Because it knows it can't without triggering a hyperinflationary catastrophe.

654779[/snapback]

 

 

The great deflation

All asset classes are toast

Keep holding your puts

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Vacation Home Sales and Prices Tumble

 

Vacation home sales in the U.S. tumbled 31 percent laSSt year.

 

"Some buyers simply adopted a wait-and-see attitude,'' Lawrence Yun, the Reamtor's chief eCONomist, said in the reamport.

 

what buyers? all the buyers are already stuck with their own negative caSShflow debt monsters that are eating them alive! month after month after month.....

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Reamtors out of conmission

 

Orange County ream estate agents income was down about 42 percent from 2005.

 

Forty-five percent of all agents affiliated with an active Orange County ream estate office had no income last year. :o

 

"The industry as a whole is definitely taking a gigantic haircut in conmissions," said Steven Thomas, president of REAMAX Ream Estate Services of Aliso Viejo.

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It's as close to a hopeless situation as I have ever seen.  Why doesn't the Fed just open the liquidity floodgates. Because it knows it can't without triggering a hyperinflationary catastrophe.

654779[/snapback]

They're so-o-o-o screwed....

 

I'm not convinced it would be hyperinflationary.

 

Look how fast Bear Stearns collapsed when investors decided not to carry it any longer. If the Fed were to open the liquidity floodgates here, with the dollar where it is, they could initiate a flight from dollar-denominated assets and repatriation frenzy.

 

Imagine if foreign investors - who are still pouring in $4 billion each and every day, or $1 trillion/year, to support our current account deficit (Source)- were to decide not to carry us any longer?

 

I thought this was the most under-reported story of the week:

 

LONDON (MarketWatch) -- South Korea's National Pension Service plans to no longer purchase U.S. Treasurys, citing falling yields and an urge to pursue a broader range of foreign investments, news reports said.

"It is difficult to buy more U.S. Treasurys because the portion of our Treasury investment is already too big and Treasury yields have fallen a lot," said Kwag Dae-hwan, head of global investments at the National Pension Service, according to a Financial Times report.

Heading for the Exit?

 

It's only little ol' South Korea, but that's how these things begin.

 

You could have "bond vigilantes" re-emerge in the form of foreign sellers of Treasurys and other liquid dollar assets in the face of the Fed's apparent readiness to pump liquidity.

 

Dollar tanks for real.

Interest rates soar.

Credit-sensitive dollar-denominated assets (read: "the U.S. Economy") get massively marked down: those include residential and commercial real estate, the levered hedge fund industrial complex, and corporate bonds.

 

Yeah, they got a printing press.

 

But if a dollar crisis erupts - especially one of its own making - the Fed could collapse overnight the Cardhouse of Confidence that Greenspan built.

 

Its printing press could be overwhelmed by wave after wave of distressed assets hitting the market.

 

Where any Fed offer to purchase last night's distressed assets sets off another round of panic flight from tomorrow's distressed assets denominated in that currency.

 

What do they do then?

 

Call a "Country Holiday" the way they do a "Bank Holiday"?

 

I'll say it again.

 

They are so-o-o-o screwed.

 

And so are we all.

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Foreclosing on Fido: Financially overwhelmed homedebtors abandon homes with pets still inside

 

Call it reckless abandonment. Shelters and animal rescue organizations across the country are packed cage-to-cage with dogs and cats, even birds and reptiles, that have been ditched or dropped off as scores of foreclosed-upon homedebtors relocate.

 

"There are a lot of people who are just walking away and leaving their pets behind, which breaks everyone's heart," said Windgassen, the president of Anthem Pets, a nonprofit animal welfare organization in her community. The number of abandoned pure-bred dogs in her neighborhood alone has jumped 10-fold just since Christmas. "It just boggles my mind," she said. "It's cutting across all income levels and age levels."

 

"The economic times are making everyone pull their belts in a little tighter and people are having trouble taking care of their pets or keeping them if they've lost their home," said Stephanie Shain, director of outreach for the Humane Society. As consumers face foreclosures they often move first to rental apartments or homes that won't allow pets. They're also likely to give their pets up if they find themselves imposing on a family member for housing.

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