9/18/07 - A Sad Day For America

Quote from matgallis:

Huh?

Gas, oil, corn, copper, lead, zinc, copper, HOUSING, FOOD, HEAT, tuition, etc etc

You know, only the stuff we use daily :/
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But the inflationary gauges CPI and PPI exclude food and energyso that leaves metal, housing and tuitions.

Well housing is a bubble that will settle and tuition, well free economy.

So our economy is doing great.

Psych!!! Here comes the rate cuts to bail out the basterds who bought houses on interst only loans while suckers like me who rented hoping the housing prices to go down so I can put 20% down and get a decent mortgage are being screwed royally without any lubricants cause you know what all the dollars I saved up aren't even worth using as toilet paper.
 
Quote from sobemark:

http://www.homelandsecurityus.com/options082907


$1 Billion in suspicious stock activity reminiscent of pre-9/11 conditions


29 August 2007: In the weeks preceding the 2001 attacks on America, there were very significant financial warning signs that something big – and bad – could be about to happen. Huge surges in purchases of “put options” on stocks of United Airlines and American Airlines, the two airlines used in the attacks, and “put options” on Merrill Lynch & Co., and Morgan Stanley, stocks of two financial services companies hurt by the attack were noted. Put options are essentially “bets” that a stock or stock index will drop on or before a certain date; the larger the drop, the bigger the gain for the purchaser of the option.

Fast forward to the present day, and we have the same type of trading that took place in the days that preceded the 9/11 attacks – but on a larger scale. Nearly $1 billion of “put options” have been purchased, basically betting that Standard and Poor's 500 index will fall significantly by the third Friday in September. A large number of these options have also been purchased calling for 50% decline by September 21, 2007. For example, a 5% drop in the Dow Jones Industrial Average would be the current equivalent of about 670 points. A decline of 11% would equal about 1,470 points in today’s market. Obviously, larger drops, such as a 50% decline, would cause an unprecedented market collapse. Money would be made for the purchaser(s) of the put options – but the same purchaser(s) stand to lose over $1 BILLION in the investment if the market remains relatively static through September 21, 2007.

The questions are: who can stand to lose $1 BILLION, who will gain in the wake of such a devastating collapse, who are the investors, and what do they know that we don’t?
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wake up... we pass this one already few weeks ago...
 
Quote from aeliodon:


Guess who gets hurt by inflation the most - the poor and middle class who don't hold inflation hedges like real estate, stocks, bling, and foreign currency like the ultrarich do.
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no many poor and middle class mostly have debt, so high inflation is a good thing.
 
Quote from fusionz:

no many poor and middle class mostly have debt, so high inflation is a good thing.
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Only thing that's not inflating is wages. Corporate America, in cahoots with congress, makes sure that the earnings surpluses never trickle down to the little guy.

High inflation is not going to eradicate consumer debt. It will only make consumers MORE dependent on consumer lending to service the day to day necessities of life.

In your language, that would be

"inflation = bad, makes poor and middle class more in debt".

RoughTrader
 
I feel sad for anyone making minimum wage. I always argued that minimum wage should be tied to inflation. Not because i give a damn about poor people, but it will give real incentive for everyone to fight inflation.
 
Quote from RoughTrader:

Only thing that's not inflating is wages. Corporate America, in cahoots with congress, makes sure that the earnings surpluses never trickle down to the little guy.

High inflation is not going to eradicate consumer debt. It will only make consumers MORE dependent on consumer lending to service the day to day necessities of life.

In your language, that would be

"inflation = bad, makes poor and middle class more in debt".

RoughTrader
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You're logic is illogical. Inflation = Good news for people with excessive debt... for example, the US Government will be running a balanced budget sonner than anyone expects.
 
Quote from The Kin2:

You're logic is illogical. Inflation = Good news for people with excessive debt... for example, the US Government will be running a balanced budget sonner than anyone expects.
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you're not hearing me. I am arguing that assets and commodities have and continue to inflate, while wages remain static. The equivalent would be wages falling over time with the cost of living remaining flat.

With the real value of wages falling, the income consumers receive will service less and less of their existing and new debt. Specifically, this means that as costs rise and wages remain stagnant, consumers increase their use of credit to both service old debt AND create new debt by financing a costlier lifestyle.

With the power of compounding working against him, Joe Middleclass will be drowning in a sea of interest and finance charges when inflation rears its ugly head.

RoughTrader
 
Ben is just a central bankers puppet.. direct your anger at the real criminals.. Rothschilde's Schiff's Warburg's Morgan's etc
 
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