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CNN..THe U.S Economy Hard Landing !?

luvpump
Posts: 1,621 Forumite

Just the First two Minutes of this 10 min clip will indicate how bad things are going to get over there !! & will probably be us in 6 months time !
http://www.europac.net/Schiff-CNN-9-22-08_lg.asp :eek:
http://www.europac.net/Schiff-CNN-9-22-08_lg.asp :eek:
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Comments
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Schiff was the only one talking sense of the 4.
Was disappointed with Nouriel Roubini. All the other 3 had somehow come around to the bailout plan before any real details of it had been announced - and we now know the authors of the bailout plan only have the haziest of ideas on how the mega-billions they want to add in debt is supposed to be deployed for any good.
http://www.timesonline.co.uk/tol/comment/columnists/anatole_kaletsky/article4820549.eceWhen further details of the Paulson plan failed to appear on Sunday it was assumed that the details were being untangled in late-night political negotiations. When there was still no plan on Monday, the view was that Mr Paulson must be holding back the details for his testimony to the Senate Banking Committee the following day.
But then, to everyone's astonishment, Mr Paulson turned up to the committee on Tuesday morning with only the briefest opening statement, which simply repeated what he had already said the week before: the sky was falling and the only way to stop it was to give him authority over $700 billion in public money, to be spent in unspecified ways.At first, nobody could quite believe Mr Paulson was incompetent. Was it really possible that the Treasury Secretary had no idea of what to do with this unprecedented financial firepower? Perhaps his silence on crucial issues such as what he would pay for the banks' “troubled assets” was just a tactical ruse.
But as the cross-examination rolled on, and Mr Paulson just waffled - “we will ask experts to advise us”, “we will get the best and brightest financiers to suggest ideas” - the terrible truth dawned. There was no such thing as a Paulson plan. Not only did Mr Paulson not know what he was doing. He did not know what he was talking about.For the most part, most illiquid assets are illiquid because their not worth anything.*
And if somebody has a house that they bought for $4 million it goes up to $5 million, he wants to sell and nobody buys it, thats not really an illiquid asset. If he takes it down to 1 he might sell it.
People aren't smart enough; the Federal Reserves not smart enough, Treasury's not smart enough, Congress is not smart enough, to know what prices are.
* Sometimes not worth anything but I think he also means not worth the current high or book-asking price.
If you let the bad debt get liquidated, fall to a level where the market is interested, then the good money in the market will come in and take over the stuff that is worth something.0 -
The effect of this will be felt for many years to come, all over the world , the idea that property will take off again is fantasy...the last couple of weeks will be talked about by Economists for Decades to come ..0
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