The coming financial crisis

[ATV]

The craziness is that both sides of the aisle think the Bush plan sucks.

It only took eight years for the Repubelicans to finally come around?

[rjs246]

No bailout agreement, which is good. Do this shtein right and don't just hand these fargers a blank check for their zesty decision making. But boy how the markets will tumble.

[Diomedes]

I think we should all stop paying our mortgages immediately.  Tell the banks to go straight to hell and they can take my house after they take my gun.

[rjs246]

I think we should all stop paying our mortgages immediately.  Tell the banks to go straight to hell and they can take my house after they take my gun.

Now this is an attitude I can get behind. Want to be my VP?

[Diomedes]

Can I drink on the job?

[rjs246]

Don't you know me at all?

[Rome]

I actually laughed out loud at page 1 of this thread.  It's astonishing how much worse things are now than any of us predicted it to be.  I'm scared to death at this point, to be frank.  Every indicator I'm looking at is saying we're approaching critical mass in terms of a financial crisis that will make the depression look like a tea party.

[Geowhizzer]

Better start brushing up on your Chinese.  They'll own America soon enough.

[BigEd76]

Washington Mutual seized and parts of it were sold to JPMorgan Chase

[PhillyPhreak54]

WaMu should be seized for its radio commercials alone.

[Cerevant]

You know where to put your money...


BTW, anyone with a clue knew something bad was going to happen months ago...all the leading economic indicators were pointing squarely and decisively toward recession.  The evidence was so strong that my wife (who has access to reports on the indicators from her work) asked if there was a definition for a depression...

[reese125]

we are no doubt in a major recession now, but the funny thing a mild recession is exactly what this economy needed alot earlier for  the way the economy was going. Its a natural part of the business cycle, and it would of allowed for the economy to heal itself

the fact that Washington couldnt see a collapse and just kept seeing consumers and investors spending at an all time high is even scarier.

[Seabiscuit36]

no one cared because they were all getting Caked Off for such a long period of time.  Wachovia is off the on deck spot and now is at the plate. 

[Cerevant]

What is McCain asking for?

1) Tax breaks for companies willing to take on the "bad debt"
2) Suspend capital gains tax.

What do these two have in common?  Converting investments to cash until the storm is over.
#1 lets companies take on bad mortgages at basically no cost and forclose - pocket the change and move on.
#2 lets rich investors move their money out of the US market until the market has stopped falling.

And what happens to the market when there is a massive sell-off?  Who suffers?  One clue: not the people who have converted their investments to Euros. 

[BigEd76]

You know where to put your money...

....and RBC owns Citizens Bank, so I'm good for now....