Is the worst behind us in the credit crunch ?

[Alicia Leonard]

Heyyyyyy, I thought I was the SPAM hookup.... {{Aleonard, I brought spam samiches to the luau}} Funny thing - they were gone pretty quick....

So, I have the spam, sunspotbaby is gettting the firearms, who can garden??

sorry goofer for jackin your thread...

Sorry IBD. I guess I was thinking you're the south side spam hookup

I have one pepper on my plant, but I'll share.

Ditto Goofer

 

[DD]

Looks like Rita and DD can grow things. 'Bout the only thing I can grow is mold.

I can grow iris. And herbs.

 

[rapunzel]

I have a bumper crop of Greek oregano, nasturtiums, and mint right now. I'm not sure how long I could subsist on those....

Goofer, you should get with JOE and see about starting a community garden on one of the greens so you all won't starve.

As for you question, I'm quite sure the credit crunch isn't over...

 

[scooterbug44]

I've got rhubarb, parsley, and chives for the communal stew pot!

 

[SHELLY]

I'm thinking another 25 basis points tomorrow.

I also think there's going to be more and more toxic paper being 'discovered' going forward (both in the US and abroad)--it just means more stuff to off-load to the central banks for treasuries to shore up the banks' (& now non-regulated-banking entities') books.

Goofer, it's still a trainwreck out here. I'll ask you the same question I asked you months ago when folks envisioned the financial system had hit bottom (and gas was $2.50 a gallon)--just what do you see that will make the US economy snap back to normal?

The days of our 'booming' economy that centered on people selling real estate to each other, and buying tons of foreign-made junk, using money borrowed from the Chinese, is SO over.

.

 

[flyguy]

I remember talking to a coworker in 1999. He was convinced Y2000 was going to be the end of civilization. He had bought a generator, stocked up on dry goods, fuel, guns, etc.

He lived on the outskirts of Atlanta. So I asked what was going to happen when electrical power is gone, the grocery store shelves are empty, and 2 million nearby people are crazed with starvation. And they see his house with a generator humming and the lights on with the smell of home cooked food. You could not buy enough ammo to protect yourself.

He did not have an answer.

Your scenario is a remote possibility. But planting a garden and buying some dry goods will not save you. Your neighbors won't just sit there and quietly starve to death as they watch you cook up your beans.

The only answer is to get completely and totally away from civilization. I would suggest buying a float plane and going to a remote Canadian lake and building a cabin.

As for me, I have already stocked up on the essentials (limes). You will find me spending my last few days on earth watching the sunset from my gulf front condo while enjoying my large stockpile of gin and tonic. And no one will really care if it was the bottom of the real estate market or not. But oh what a view.

JMHO,
Flyguy

 

[30A Skunkape]

Shelly and Goofer-I heard on CNN this morning that irregardless of what the US Fed does to interest rates it might not do much for domestic credit as a substantial factor in our banking is somehow tied to an interest rate that is established in London (it sounded similar to the US prime rate). Could you please expand and explain in layman's terms?

 

[Bob]

libor...libor....libor

 

[SHELLY]

Shelly and Goofer-I heard on CNN this morning that irregardless of what the US Fed does to interest rates it might not do much for domestic credit as a substantial factor in our banking is somehow tied to an interest rate that is established in London (it sounded similar to the US prime rate). Could you please expand and explain in layman's terms?

http://www.mtgprofessor.com/Tutorials2/libor_loan_tutorial.htm

.

 

[incredible1]

I bet I know Shelly's response. And what do you think the Fed does tomorrow. Cut a quarter point and be done cutting for the foreseeable future ? It seems as though most of the Bank write offs could be behind us as far as the toxic paper is concerned. At least in America......don't know about the rest of the world.

The real issue is no one is getting access to wholesale funding so with the spiggot turned off it gets tighter everywhere from the larger banks all the way down the line. That is about to loosen up shortly in the next couple of months.

96 % of all mortgages are being paid on time so 4% in trouble doesnt sound like much of a problem
Except the amount in dollars is huge
Frankly as far as real estate goes, an adjustment has been needed for quite some time.
What goes up must come down, if even only temporary.

As for claims of doom and gloom and depression this and recession that
the GDP is still in growth, yes its .3 of a percent but with this low an unemployment level and actual growth, the sky is simply not falling

Note that every time the election comes around there is always the side no matter dem or rep that says "everything is terrible its such a mess and we are just the ones to fix it"
yeah right