The idea of free markets has ended.
The beginning of the nationalization of FNM and FRE....after the Bear Stearns rescue.... shows the cracks in the dam.
Nothing is going to replace the value between real estate values at a normalized interest rate versus the values that were created with the Greenspan low rate policies.
Some estimate that over 1 Trillion dollars in losses remains in residential housing alone....not including other categories such as credit cards, commercial real estate loans....the list gets longer.....
Furthermore, why would any sovereign fund piss away more money than they already have on companies such as Citicorp, after just losing 30 to 50% in less than a year ?
Also, why should foreign funds of any type buy the weak, when the stronger companies are on sale via the cheap dollar such as BUD....and much more to come ?
...................................................................................................
Thus government debt has to go to 7% tbill rates to be attractive, and maybe even higher . Thus this alone moves the real estate and other losses much higher.
Part of the carry forward loss of $7 trillion bubbilized by Greenspan policies into real estate debt, is a more likely figure. Another 1 trillion being the stopping point would be small, especially when the printing press is taken into consideration.
What does this mean ? At the very minimum a multi-trillion dollar bailout requirement or just finally an absolute loss, which should have not been carry forwarded from the 2000 stock market fall out. However, since much of this loss is visible in FNM, FRE debt held by foreign suitors, the fed has shown that they are more willing to work the printing press ponied on the US taxpayers, than simply taking the prolonged 2000 stock losses which have materialized in cheap real estate loans.
.................................................................................................
Just as the US citizen has lost its freedom in fighting terrorists by foregoing individual privacies, the idea of a genuine capitalism has evaporated and is tranforming into a new tax paid paradigm, called pseudo capitalist socialism.....
The only way this changes is through structural changes which are nowhere in sight and have not even been mentioned by those who are seeking solutions.....
.................................................................................................
The world needs a currently successful capitalist model .....
Where is it ?
The beginning of the nationalization of FNM and FRE....after the Bear Stearns rescue.... shows the cracks in the dam.
Nothing is going to replace the value between real estate values at a normalized interest rate versus the values that were created with the Greenspan low rate policies.
Some estimate that over 1 Trillion dollars in losses remains in residential housing alone....not including other categories such as credit cards, commercial real estate loans....the list gets longer.....
Furthermore, why would any sovereign fund piss away more money than they already have on companies such as Citicorp, after just losing 30 to 50% in less than a year ?
Also, why should foreign funds of any type buy the weak, when the stronger companies are on sale via the cheap dollar such as BUD....and much more to come ?
...................................................................................................
Thus government debt has to go to 7% tbill rates to be attractive, and maybe even higher . Thus this alone moves the real estate and other losses much higher.
Part of the carry forward loss of $7 trillion bubbilized by Greenspan policies into real estate debt, is a more likely figure. Another 1 trillion being the stopping point would be small, especially when the printing press is taken into consideration.
What does this mean ? At the very minimum a multi-trillion dollar bailout requirement or just finally an absolute loss, which should have not been carry forwarded from the 2000 stock market fall out. However, since much of this loss is visible in FNM, FRE debt held by foreign suitors, the fed has shown that they are more willing to work the printing press ponied on the US taxpayers, than simply taking the prolonged 2000 stock losses which have materialized in cheap real estate loans.
.................................................................................................
Just as the US citizen has lost its freedom in fighting terrorists by foregoing individual privacies, the idea of a genuine capitalism has evaporated and is tranforming into a new tax paid paradigm, called pseudo capitalist socialism.....
The only way this changes is through structural changes which are nowhere in sight and have not even been mentioned by those who are seeking solutions.....
.................................................................................................
The world needs a currently successful capitalist model .....
Where is it ?
