Where did the Crash Come From?

Who stopped the rain, and where did the crash come from? It came from the MBS. The Mortgage Backed Securities which are the second layer of the Ponzi pyramid called the housing bubble, the real estate bubble.

The mortgages crashed, you heard about that. The MBS and real estate bubble crashed too. That was a giant Ponzi scheme, including MBS bought by China and India investors. You know, Chinese Communist party billionaires bought US MBS (Mortgage Backed Securities). Foreclosures are the big business now. Countrywide Mortgage Brokers were bailed out by $11 billion, a bigger bail-out than in 1998 of LTCM. The system is finished folks. We have to create a bottom to the depression, or there will be no bottom. There will be a dark age, of collapse of home. Moves toward dictatorship and war adventures will only ACCELERATE the collapse. We need a new agreement on a no speculation financial system, and a stable dollar.

So, my patriotic flag-waving friends, cut it out. We need Russia, China, India. We cannot allow the British Empire apparatus create another Cold War. We need them, but they need us as well, because they know that if the dollar goes under, they are also broke.

And if you want to know how terrorism is really run, who is really supporting the Sunni counter-gang in Iraq. Is it Iran, no that is impossible, they are with the Shiites. It is the British Aerospace Enterprise (BAE) apparatus, together with their Saudi, and Israeli and other friends. This is not top secret, you have Amb. Khalilizad from Bush's own admin., at the UN alluding to this. Stop getting screwed by a bleepin British countergang, they have been doing this since giving booze and guns to the American Indians, to attack the Amer. colonies, before the American Revolution. Doesn't anyone read history anymore?

This is beginning to sound like the guy at a bar, with a live frog, trying to pick up a girl, telling her the frog can...do stuff... (Anybody know that one?)

All I Want to Do is Have Some Fun

If the financial collapse has got you down, why not sing a song, and get some Hawaii of those Hawaii Homes for Sale.

All I want to do is have some fun/ In Hawaii, I think I'm not the only one. Until the sun come up over Wakkikki Beach and Boulevard. Now, I think you are getting into it. And in case you didn't know, Oahu real estateis in the island that is the home of the capital city of Honolulu, and the place where Wakkikki beach is.
Don't delay, because of environmental restrictions, there is a limited area that can be built up on Oahu, so real estate is scarce.


And where else can you live in such a great place, like Honolulu real estate? Hawaii, despite being the 50th state of the United States, has the feeling of being a foreign country, with the exotic customs, ethnic groups, and of course the fantastic weather year-round.

Wild Foreclosures

Finding foreclosures is easy to do-- the cheap real estate I got there, I bought it for you.... You too could be singing a song if you get one of these great deals for foreclosures that I have linked to, all over the United States. The mortgages you get may be more restrictive than the wild days. After all, with the market in a tizzy and the MBS (Mortgage Backed Securities) a bit frozen up, some problems are expected. But, who knows? You may need a re-financing of your existing "wild days" mortgages anyway.

If you can't get the necessary documentation together for your mortgage, the other alternative obviously is apartments for rent, from simple places to live to luxury condos, duplexes and the whole fantasy trip. If you're lazy like me, you can enjoy your beautiful new home. But, if you are one of these 60 hour a week guys, maybe just find a cubicle to sleep in. Whatever, turns you on.

Real Estate Round the World

It is nice to think about owning real estate around the world. Real estate can be a nice investment if it is not overpriced. With the bubble popping that should be easy to get a hold of. You can get vacation rentals in places like Cabo Saint Lucas. Which can be a lot cheaper than renting rooms in an ultra-expensive hotel.

Florida vacation homes can be anything from sumptious villas to a little condo near the beach. Yes, there is a real estate crisis and an economic crisis, but hopefully life will go on, and working 60 hour weeks in the financial district can really bash you up. So why not try one of these vacation opportunities? If you want, you can take your laptop computer with you, most of these places have internet connections, or even wireless, and you can be out in the sun. Like a fantasy picture I saw, you could be the guy laying down in his swimming trunks and blogging for bucks.

New York Talking Heads Losing It

Looking at the NY Times complain about home prices declining is such a joke. Let's look at the ridiculous arguments, and the "Crimes of the Times". First of all, the financial system is coming down soon, or else they will hyperinflate out, and the whole price structure will deteriorate rapidly. But let's take a looksie:

Drop Foreseen in Median Price of U.S. Homes (What not enough people enslaved and suffering?)

Economists say the decline, which could be foreshadowed in a widely followed government price index to be released this week, will probably be modest — from 1 percent to 2 percent — but could continue in 2008 and 2009. Rather than being limited to the once-booming Northeast and California, price declines are also occurring in cities like Chicago, Minneapolis and Houston, where the increases of the last decade were modest by comparison.
(That means they are urging the Fed Res to hyperinflate as soon as possible).

If you want the rest of the drivel, it is here at: Really Long Link

Crash Baby Crash- Beyond Real Estate

I know you don't want to read about the financial crash. Tough! With Citibank, Bank of America, J P Morgan Chase and Wachovia getting "helicopter drops" of money from the Federal Reserve, it's a little hard to ignore. But, for the doubting, here's a bit more evidence, from the latest Fortune Magazine.

It seems the Federal Reserve made another desperate lunge forward this week, sending letters to both Bank of America and Citigroup on Aug. 20 allowing them to "blow through" the legal limits on how much they are allowed to lend to their own brokerage firms, it was revealed today by Fortune. Fortune comments: "This unusual move by the Fed shows that the largest Wall Street firms are continuing to have problems funding operations during the current market difficulties, according to banking industry skeptics. The Fed's move appears to support the view that even the biggest brokerages have been caught off guard by the credit crunch and don't have financing to deal with the resulting dislocation in the markets."

Fortune also notes that the other big banks have probably received the same exemption, which allows each to lend $25 billion to its brokerage (i.e., Citibank can lend $25 billion to Citigroup Global Markets, its brokerage), which is about 30% of their capital, as opposed to limits of 10% under the regulations.

This move is linked to the Fed's reduction of rates on their discount window last Friday. "This is just a technicality to allow us to use our regular channels of business with funds from the Fed's discount window," said Bob Stickler, spokesperson for Bank of America, to Fortune's Peter Eaves.

The Fed even claimed to be acting in the "public interest," because it allows Citibank to get liquidity to the brokerage in "the most rapid and cost-effective manner possible," they told Fortune.

Financial and Real Estate Crash on the Brain

A lot of people are getting hip to the fact that the system is finished. The real estate collapse has intensified to the point that the biggest real estate company, Countrywide, had to be bailed out to the tune of $11.5 billion. This has not totally escaped the population, as in the run on the Countrywide Bank, owned by the real estate giant, in California, and possibly other places. But, the word from the geezer is that unless we have a bankruptcy reorganization by October, the whole bloody international monetary system is coming down by October, for real.

However, to be clear, there are some other interesting blogging voices out there, that I am happy to link to. Here are some: dcfred, preciousmetalzone, aradicalwrites and a British political voice..

I hope this helps, together with impeaching and dumping W Bush's brainwasher, Dick Cheney. Have fun.

Republicans and Real Estate

In the face of the real estate collapse and so on, the Republicans are crascking up. Milt Romney, the so-called leading Repub. Candidate is a right-wing lunatic. Of course, John McCain is virtually washed up. What is even more interesting is the high dropout rate from the Republican leadership in Congress. Maybe they can't stand Dick Cheney any more, and are dropping out of politics. Of course with the collapse of the real estate bubble, the Republicans seem set to take the blame, with their wild rhetoric for "free enterprise" and cheering on the biggest bubble in history, including the real estate bubble. Ironically, the free enterprise gang is now demanding to be bailed out by the Fed Reserve and the Treasure, to the tune of the Fed Reserve buy up of hundreds of billions of MBS and ABS. (Mortgage Backed, Asset Backed Securities).

Eight-term Republican Congresswoman Deborah Pryce (R-OH) announced today in Columbus, that she will not seek re-election, citing family considerations. Pryce was the fourth-ranking Republican when the GOP controlled the House before the 2006 elections. She is the third House Republican to make such an announcement recently, as the GOP chances in the 2008 election move closer and closer to zero. The others are former Speaker Denny Hastert and Ray LaHood of Illinois.

Somewhere in New York City

After a day politicking in New York City, that was the strongest sentiment about the presidential candidates. Guiliani really stinks. Yes, but the debates have been so artificial. Now, the financial system has disintegrated. What are the candidates going to do about that?
As for Guili, let's see. There's his organized crime linked former Police Commish, Bernie Kerik. And then there's his former wife's (Ms. Hanover) involvement with the "Vagina Monologues". Sure the fundis will love that.

It was a beautiful day, if anything too sunny and a bit hot, but bearable. Frenzied tourists got on little bicycled operated people carriers, also known as (aka) rickshaws. Nearby, a man, wearing only shorts, who was at least 40 years old, was recovering from running, covered in sweat.

Some one stopped a passerby, "You Heard about Dick Cheney and the Queen of England? She wanted to use a condom, because she was protecting Dick", I guess from her royal diseases. Prince Phillip was not amused.

What's the big news? Lyndon LaRouche, the American gadfly, and (apparently) former Presidential Candidate warned that the global financial system would collapse and seize up, and now it is! Perhaps it is time to have the 9/11 Commission really ask Dick Cheney some questions too. Such as: 1) Do you know anything about the Queen of England? 2) About Saudi Prince Bandar? 3) About Ya-Mamah? In case you didn't know, Yamamah (dove in Arabic) refers to the 20 years and $200 billion dollar arms and covert ops funds generated by Saudi Arabia and the British Aerospace Company (BAE), which may be involved in every political and military op in the book, from 9/11 on down.

To top all this off, we now have (sing the song) U.S. Bridges falling down, My Fair Lady!! (there's more from where this came from).

Financial Foreclosure is a Bummer

Mortgage foreclosure is a scary process. Many people are not sure why there are so many foreclosures, but they have definitely accelerated. I guess people were getting loans without background checks and all that funny stuff. Anyway, try to get a good foreclosure resource.

You should find out the foreclosure laws in your state if you are in, or going into this type of situations. Sometimes you could be kicked out of your home in days, but often, with a little knowledge, you can create months to hold on and try to solve your situation, with some foreclosure information.

You should get as much help as you need. Find out if you can get free foreclosure help, or at least cheap foreclosure help. If you are in this situation already, you don't need to have any more bills to pay. With the ongoing problems in the financial system, a lot bigger players are biting the dust than you, but of course if you lose your home, that is little consolation.

The Republicans Don't Even care about the Falling Bridges

With some of the neo-cons letting it all hang out, will the Republican Candidates for Pres. like McCain, Romney and Guiliani tell you to jump off a bridge? Like the Minneapolis bridge that fell apart? It seems that despite protests of "caring" about this, if we go back to these people's ideological controllers, such as the Fox TV, Rupert Murdoch crowd, they just don't give a damn. Our infrastructure is collapsing faster than the real estate market.

Appearing on the Fox News Sunday program, Neo-conservative Bill Kristol said "we're spending an awful lot of money" already, "mostly state money, not federal. That's the tradition in America and it should probably stay that way. You know, I don't think this symbolizes any great failure of our infrastructure. Once every twenty-five years, some bridge falls down unexpectedly due to engineering problems, and it is unfortunate, obviously. But the idea that the whole country is crumbling is not, I think, credible."

You see the callousness, the total shamelessness of it! It's amazing that the whole Republican crew is not tarred and feathered.

Dead Hedge Funds Don't Take Care of Themselves

How do you tell a naked hedge fund on a swim? When the tide rushes out. Or when the money dries up. While most of the press internationally is in full cover-up mode, the near collapse of the German "industrial credit bank" IKB has shocked some in Germany into recognizing the situation (see accompanying article). Jochen Sanio, head of the German banking regulatory agency Bafin, admitted, minutes before the IKB crisis was declared to be out of control, that this amounted to the "worst banking crisis in Germany since 1931." According to the Sueddeutsche Zeitung, the "whole German banking system" was in danger, which was obviously the reason for a temporary rescue action for the IKB by the German government and the State Credit Bank for Reconstruction, at the tune of 8.1 billion euro (over $11 billion).

But this is only the tip of the iceberg; more U.S. mortgage bankers, such as American Home Mortgage, are in serious distress. One reason for that lies in the practice of so-called "adjustable mortgages," a procedure whereby the buyers can acquire real estate, which is more expensive than their ability to pay, and in which, for a certain period of time rather low interest rates on the mortgages fall due, but then, after a prescribed period, at most two years, are automatically raised. If the higher rate goes into effect, the payments rise in the range of hundred of dollars (per month). This subprime mortgage market went into full swing in the spring of 2005, therefore an avalanche of increases in the rates has been unleashed precisely at the present time.

All in all, increases in the interest rates on adjustable rate mortgages affect 12 percent of all mortgages in the United States, raising mortgage payments by a trillion dollars, on at least 12 percent of all mortgages in the United States. In October alone mortgages will be jacked up by over 50 billion, at which point the bloodbath, which has already occurred in the subprime mortgage market, will be a proverbial picnic, and eventually all categories of mortgages will be threatened to be affected. According to Moody’s Economy.com, between 1995 and 2005 about 3.2 million householders bought houses on the basis of the secondary mortgages or similar credit-terms, and thus it is expected that about two million of these houses will be lost in the next months--as long as you consider only the situation in the housing market itself. The flood of housing sales has led to a dramatic collapse in real estate prices; because of the exposed position of the financial institutions, it will become considerably harder to get new mortgages, and the effect on the real economy, including jobs in the construction sector, will be catastrophic.

Much more dramatic than this situation itself is the fact that this collapse has been accelerated by another process with very much more far-reaching consequences, namely the drying-up of the paradise of cheap credit as a result of the end of the Japanese yen-carry-trade. With it dried up the wonderful source of liquidity, which permitted investors for years to borrow advantageously in yen at a zero interest rate, in order to invest in higher interest rate sectors around the world. The flood of liquidity from this source amounted to 500 trillion dollar, which has been as good as cut off. In the face of rising interest rates, now speculators who have contracted cheap yen-credit and were met with losses in the American mortgage market and in the hedge funds, have sought desperately to turn their investments into cash in order to pay back their yen-loans, which has led to an up-valuation of the yen. Again this raises the losses of the speculators. The reverse leverage leading to the collapse of the speculative pyramid is in full swing.

Europeans Fear Global Financial Crash

The fear has hit europe in the crash and rolling crash of Mortgages and more important, of mortgage backed securities. This could be the big crash.

For example, Handelsblatt, Germany's leading business daily, noted that because a standard mortgage firm defaulted now, not a firm of the sub-prime scene, a spill-over to the rest of the market is feared, and "a profound economic crisis in the USA could result from that." The same article quotes a German market analyst as saying "the financial markets fear that unlike the crisis of the hedge fund LTCM, this time it is not one big bomb that causes damage, but that behind every door, there is a hand grenade (ready to go off)."

Also, Liberation, one of France's leading news dailies, pointed out that the American Home Mortgage case signals what the IKB collapse in Germany already indicated, namely that the crisis has turned systemic. And since one third of jobs created in the USA since 2001 hang on the real estate market, the crisis will hit badly in the States, but not only there, due to this globalized, highly-interconnected world.

Berlingske Tidende, a leading Danish news daily, added some sarcastic notes to its report on the American Home Mortgage disaster, saying that the "fin-spins," the financial market spin-doctors, still create the impression that nobody here on Earth has to worry, as if the losses will be taken by someone from outer space, in case of a crash.

A crisis symptom of the first degree in Europe was furthermore, that the Governor of the European Central Bank, Jean-Claude Trichet, broke the taboo that no press briefings be held in the holiday month of August, when he went to the press yesterday, trying to deliver the message that "calm blood" allegedly was appropriate in this crisis, that things were under control.