Figured this would be funny to revisit as a log in a few years. Will post the best Enron Economy from yesterday to start out. UBS Loses 12 billion, writes down 19 billion, CEO resignes, Fitch and S&P cut ratings a notch and keep it on negative watch and................It trades up 15% on the day!!! just another day in the Enron Economy
Many think that after UBS wrotedown over $10 billion that it marked what they believe to be the bottom of the financial crisis...how they think the biggest credit bubble in history only lasted about 6 months makes me laugh, there is no way a crisis in the market place of this magnitude only last 6 months....there is still plenty of writedowns to come and plenty of ARMS that still need to reset, the markets are not done with this problem just yet....
The way I see it. The median price of a house will have to be affordable to the median income. We still have a long way to go with a recession and job loses to a housing bottom. Banks will soon become the biggest landlord of vacant properties in the world.
Our economy is a fucking shell. Bernanke is a genius for keeping things afloat for as long as he has. But one day... one day
according to the last twenty minutes of the documentry on Enron's collapse, the same guys who perpetrated that massive fraud on that company, on the deregulated electric grid, on the western coast of the US, and on California, were in high demand by the Bush transition team, and play an integral role in their strategy in 2000, when they took over from Clinton. we have the oil prices having gone up over 400% since they took office.. once letting that pandora out of the box, other commodity inflation(s) occurred and took hold in 2008... more damage has been done to the US Economy than most events piled upon each other hitting us at once, have in the past... they say, we have been at war longer than during all of WWII, they say our housing collapse is already worse than the Dust Bowl of the 1930's and the Depression of the last 1920's combined... they say our global currency will be detroned like the British pound after WWII.... ---- didn't someone say: "stay out of the Bush(es)?"
this whole market the past 18 months was designed to fuck shorts at every turn. the worse the news the more the shorts get screwed because they pile in knowing the market will tank and then get squeezed. shorts are so beat up over the past 5 years that all the bulls have to do is yell boo and the shorts cover in mass.i'd say the past 4 months outside the jan period have been brutal for short term shorts.people are fools to short and should just buy the dips.
as one of those who keeps shorting,even tho hindsight is 20/20,your post makes sense,if bernanke had to put up your tax dollars to avoid a crash and buy some time,with the help of gsax,he and the hedge funds need to unload their problems into our accts and move on,so even tho i've been early(always)i'm not convinced that everything is rosy and that bernanke will keep on giving,thats just my opinion and it ,follows me around like a bad meal
severe and massive market regulation is what will result from all these "supply side economists and policies" without some form of regulation to moderate the ups and downs of the supply / demand curves, then just about nothing other than collapse exists... good point about how the shorts have been masacured.. but with the US Senators involved now, this is protect what remains of this country before the executive branch continues to waste it all away..... its going to be actions, whether properly measured, over measured or excessive, the damages done should never have reached these levels had the protections already in place been allowed to work, too much executive level interference to prevent proper market regulation was done.... too much...