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  #61  
Old 03-16-2010, 02:42 PM
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Just reminds me of musical chairs... I think the music has stopped.

As for actions vs. words.... rate changes are lagging indicators most of the time. China not rolling over Treasuries... yeah, that's a signal of something.
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  #62  
Old 03-16-2010, 03:48 PM
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Anybody smell protectionism around the bend?
My firm belief is that if things get real ugly from a financial perspective then there is a world war around the bend.
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  #63  
Old 03-16-2010, 04:01 PM
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My firm belief is that if things get real ugly from a financial perspective then there is a world war around the bend.
Interesting that China has whole bunch of excess males handy just for the purpose.
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  #64  
Old 03-16-2010, 06:17 PM
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Yeah and they have full stones if you know what I mean, so they will have some aggression to let out.
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  #65  
Old 03-16-2010, 06:35 PM
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A bonding experience: WWIII based on Treasuries. We could call it the "Risk-Free Rate War."
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  #66  
Old 03-17-2010, 10:54 AM
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Words are meaningless without actions. Moody's is threatening to do something at some point ... maybe. This has as much power as a rebuke of someone in Congress: none. Considering the track record of the major rating companies in identifying institutions in trouble, we can expect Moody's to actually do something about 6 months after shit hits the fan. In other news, Bernanke and Geithner are committed to reducing systemic risk and believe that failing institutions should not be propped up.



:pray: Please let us sell the current house and buy a new one before mortgage rates blow up. [Of course, if interest rates take off I expect the U.S. government to just cap the interest rate borrowers pay at something like 5-6% and agree to eat the rest in the name of "saving the economy from ruin."]


I've been hearing about how protectionism was imminent for 2 years now. I think it eventually comes along in a last-ditch, desperate measure - but I still don't think it's imminent [read: in 2010].


Both parties have been [and continue to be] completely irresponsible wrt government spending. The only difference is whose ox is getting gored by the decisions made; neither party is willing to make the hard choices that are necessary to right the financial ship of this country - and as a result, we're all going to suffer for it.

Obama would be in much better shape if he had stuck to the campaign speeches and gone after corruption on Wall Street and focused on slashing government spending; instead, he all but handed Wall Street everything it wanted and a bag of loot as a bonus, and proceeded to try and ram through even more government spending in a half-assed healthcare bill. There's no way he's backtracking on either of those things without killing what little credibility he has left, and as a result he's probably doomed himself to just one term as President. [Unless the GOP trots out some idiot like Romney or Palin to run for President - in which case, all bets are off.] That can't be laid at the feet of the other party.
We had a budget surplus when the Bushbarians rolled into town. They decimated the country through gross fiscal irresponsibility.

It should be illegal to increase spending while decreasing taxes. It ensures re-election because people really are that short sighted. It guarantees a financial quagmire after the guilty party has flown the coop.

Bush and Cheney about ruined this country. We went from relative freedom to a leading electronic police state.
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  #67  
Old 03-17-2010, 12:48 PM
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Originally Posted by Irish Blues View Post
:pray: Please let us sell the current house and buy a new one before mortgage rates blow up. [Of course, if interest rates take off I expect the U.S. government to just cap the interest rate borrowers pay at something like 5-6% and agree to eat the rest in the name of "saving the economy from ruin."]
If and when mortgage rates blow up, I would think housing prices would fall. I think I might rather buy at 20% interest rates and hope to refinance later.
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  #68  
Old 03-17-2010, 12:52 PM
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If and when mortgage rates blow up, I would think housing prices would fall. I think I might rather buy at 20% interest rates and hope to refinance later.
A $400K house at 5% would have the same (30 yr, fixed) payment as a $128,502 house at 20%. That's a heck of a housing drop.
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  #69  
Old 03-17-2010, 12:59 PM
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What happened in the early 80s re: the housing market?

That was the last time we had super-high interest rates.
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  #70  
Old 03-17-2010, 01:51 PM
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High interest was coupled with inflation in the early 80's. Perhaps it will be this time too. Interesting.
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