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Indeed. How can any outsider tell what's in their portfolio? So what if GS has the most junk (=level 3), if they have overhedged it? They could have sold more than enough ABX derivatives to hedge all their crappy mortgage CDOs.

They either can not or do not want to pay. Even Americans are not that stupid that they will want to hold a depreciating asset with negative equity, when they can just walk away, declare bankruptcy, and move to live somewhere else where rent is only a fraction of their current mortgage payments.

This very small portion is still larger than the banks' total equity capital. So subprime alone is enough to bankrupt the whole system.

So true. I wonder how the figures do look nowadays. Any update?

How much money was lent out in subprime loans in the last couple of years? More than $1 trillion. That is how much losses remain. Nobody with any sense is going to pay back his junk loan. Just give the home to the bank and walk away.

Fed should abolish itself. But they will print as much as they can get away with. Which means a 50 bp cut this time. Anything less will cause a big selloff.

Where? Any links? I agree that a recession will be great, even necessary, but for most people it will be a disaster.

Sure. Yesterday the backfill did work, but again today it didn't. Updating to latest beta did not help either. There seem to be some issues related to IB backfill. I have been in contact with QT customer support about these issues. Will report if they are solved.

I have heard New Zealand is beautiful, but can you really call it a tax haven?

So now Heli-Ben is pretending to be reluctant to cut rates. Give me a break. He would cut 200 bps immediately if he could get away with it.

Might be, but it does not show in the statistics yet. And not many believe it yet. "So what"?? Are you joking, or just totally clueless? So what, if Americans can't afford their homes and have to dump them on the market? Or give it to their bank, which then must dump them on the market at a...

Ha. Of course there are (small) areas where house prices don't go down. But the point is, on average and in most areas prices will go down a lot. You're still not getting it. $4 trillion of consumer wealth will be wiped out. Which means that a quarter of American households and the entire...

Very interesting. Seems there's still a lot of denial about the real estate crash. Thus, a LOT more downside to come.

One piece of advice: NEVER BUY ANYTHING AT A NEW LOW. Try SDS or TWM instead, more potential & less risk.

Excellent article. Ron Paul would be by far the best president for the US. Unfortunately he is too intelligent and not charismatic enough for the average stupid American. The people get the president they deserve. They don't deserve anyone as good as Ron Paul.

You made a good case. Should do a poll about this, too.

You're deluded if you believe high oil price is caused by anything else than high demand by oil consumers.

Ha! Oil was DOWN by over a buck after this news. I guess the market doesn't care about the poor rebels anymore. (well, it was a typical excuse by the clueless media anyway) What is wrong with $100 oil, btw? I believe it is a Good Thing for the world.

A few problems with QuoteTracker that have bothered me for some time. I am using the latest version (3.8.6A) but these have been present in older versions too. My computer has WindowsXP with 1Gb of RAM. 1) Backfill (via IB) for pre-market data not working (at least not for futures). 2)...

I'd use any excess cash in "safe" long-term investments, such as the yen (not paying interest anyway) or GLD/SLV.