the Economy is in recovery mode, nothing to worry about anymore, the panic is over!

[BigMass]

the Economy is in recovery mode, nothing to worry about anymore, the panic is over
http://biggovernment.com/files/2009/11/BaghdadBob2.jpg


These are News headlines just from TODAY!

AIG To Get New $30 Billion Bailout
AIG May Need Another Bailout? (AIG)
AIG Director Dammerman Resigns
http://www.huffingtonpost.com/2009/03/01/aig-to-get-new-30-billion_n_170898.html
http://online.wsj.com/video/news-hub-can-another-bailout-save-aig/FDF30469-5D23-412D-B82A-2F70BC2F9759.html

Fannie Mae seeks $15.3B in gov't aid after 4Q loss
Fannie Mae asks for $15.3B in federal aid after posting $16.3 billion loss in fourth quarter
http://finance.yahoo.com/news/Fannie-Mae-seeks-153B-in-govt-apf-941423971.html?x=0&sec=topStories&pos=2&asset=&ccode=

Housing market shows weakness for 2nd month
Big drop in January home sales show housing market could falter after federal support ends
http://finance.yahoo.com/news/Housing-market-shows-weakness-apf-1993954776.html?x=0&sec=topStories&pos=6&asset=&ccode=

FDIC shuts down banks in Nevada and Washington
Regulators shut down banks in Nevada and Washington; putting US bank failures at 22 for year
http://finance.yahoo.com/news/FDIC-shuts-down-banks-in-apf-509896487.html?x=0&sec=topStories&pos=3&asset=&ccode=

California is a greater risk than Greece, warns JP Morgan chief
Jamie Dimon, chairman of JP Morgan Chase, has warned American investors should be more worried about the risk of default of the state of California than of Greece's current debt woes.
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7326772/California-is-a-greater-risk-than-Greece-warns-JP-Morgan-chief.html

Wall Street's Greece role probed
The role of Wall Street firms in deals that may have helped Greece mask its debt woes are under scrutiny in the US, the Federal Reserve chief has said
http://news.bbc.co.uk/2/hi/business/8537676.stm

Report shows government's liabilities surging
http://finance.yahoo.com/news/Report-shows-governments-apf-1771747627.html?x=0&sec=topStories&pos=7&asset=&ccode=

[Beerking]

I think yo forgot to post all the Exec's pay increase/bonus/play money/new plane

Let em fail

ITs a vicious cycle that needs to end, ooooh waite I forgot that USA can print money at will with no consequence.

[BigMass]

Originally posted by Beerking
I think yo forgot to post all the Exec's pay increase/bonus/play money/new plane

Let em fail

ITs a vicious cycle that needs to end, ooooh waite I forgot that USA can print money at will with no consequence.


Well the entire point was to show just news just from TODAY. The state of crisis we are in right now. Not yesterday or tomorrow, but now.

The government can't and won’t let AIG fail. That would cause a massive shutdown on a global scale. They will bail them out, the will borrow more money to the point that the fed becomes the only buyer of US treasuries. They will monetize the debt and they will pray for an orderly decline in the US dollar. But prayer is all they have at this point and it won’t be enough, at which point they will bring in the IMF to enact a global currency in the form of their SDR which for the first time ever they issued bonds in just last year.

Oh wait what good timing. More news from TODAY

Head of IMF Proposes New Reserve Currency
http://abcnews.go.com/Business/wireStory?id=9958995

[TomK]

Originally posted by BigMass

The government can't and won’t let AIG fail. That would cause a massive shutdown on a global scale. They will bail them out, the will borrow more money to the point that the fed becomes the only buyer of US treasuries.

It's the same cycle over and over again.

1) Private businessmen make huge bets.
2) If they are right they pocket huge profits.
3) if they are wrong they run to the govt demanding a bailout threatening the collapse of the entire economy.
4) losses are transferred onto taxpayers who have to pay back the money *and* interest since bailout funds had to be borrowed into existence.

I think things are just happening on a much larger scale now and much more quickly than we've seen in the past.

I've also tried to think about how long this could go on before a "final collapse" and I think its related to the amount of taxes the productive members of society (worldwide) are willing and able to pay. As long as their is someone they can push the bad debts onto who is more scared of a recession than angry about the injustice, the cycle will continue.

Whats really scary about your list is that it doesn't include anything on European banks who are collectively in much worse shape overall than the ones in the US. Ron Paul got Bernanke to admit last week, that the Federal Reserve has the legal authority to buy foreign debt which means the US could end up bailing out Greece too and the taxpayers would never know because most of the Fed's actions are kept secret.

Interesting times indeed.

[topfuelman]

From the federal Reserves own charts...

From Nathan's Economic Blogspot... (http://economicedge.blogspot.com/2010/03/economic-reality-check.html)

[Cos]

And all you guys are going to do what about this. I know it is great to be informed but don't you guys get tired of talking about this?

[BigMass]

Originally posted by Cos
And all you guys are going to do what about this. I know it is great to be informed but don't you guys get tired of talking about this?

talking about current events is fun. If it wasn't i wouldn't be doing it. Got some better topics we should be discussing that won't bore me?

[spikerS]

Originally posted by Cos
And all you guys are going to do what about this. I know it is great to be informed but don't you guys get tired of talking about this?

It is just that, it is good to be informed.

it is bad PR to say that things are going down the shitters. PR firms and consultants will always try to put a positive sounding spin on something negative. Instead they can say "recovery mode" which can mean anything from trying to stop or slow the down-ward trend to, we hit bottom and now climbing out, to we are just about out.

kinda how in the 80's it was global cooling, then they got embarrassed when it switched to global warming, then they got embarrassed again, and now they just call it "climate change" which means "we are going to have weather today"

so while everyone is spouting the same optimistic outlook, it is good to be able to keep everything in perspective.