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In your commentary you reference 1977 yet the article quoting Goldman economist clearly states "since 1997." Am I missing something?

Frederick N. Chase

Ron Paul summarizes the Housing Bill.



There's a nice text summary of what he said.

Also a you tube video if you have more time.


CNBC never mentioned that the CFTC had charged
Optiver Holdings for manipulation. What a cover up..CNBC sucks. Wonder why I like
Bloomeberg better.............

Paul S

About GM: blame GM management. For years GM ignored the Japanese automaker threat; GM were smug and arrogant. And stupid. They never figured it out. No world class innovation at GM that's for sure. You also can't ignore the deep and bitter hatred GM management had/has for the UAW as a factor for the decline. IMHO GM is getting its just desserts. Now if only GM could put its factories on barges...


You relate that the "housing rescue WILL NOT work at all"; that is correct. Fannie Mae, FNM, and Freddie Mac, FRE are goners and they are zombie corporations, that is they are soulless, capital-eating monsters dragging the entire stock market lower.

The Rescue to lend to and capitalize the GSEs is coupled with the Dodd Frank housing bill, which is really Bank of America, BAC, rescue legislation; the forthcoming action of Congress and the President effectively nationalizes the US mortgage backed security debts onto the backs of the US taxpayers; it privatizes gains to investment bankers and banks and socializes losses to the people of not only America but the world as well. The legislation establishes significantly greater authority in the US Central Bank chief Ben Bernanke; and solidifies an interwoven plutocracy of legislative and business leaders in state corporate rule in America.

The powers granted the Fed Chief are remarkable, he basically becomes the chief, not only over banking, but over housing and the mortgage backed security debt of America.

He becomes a Seignior, meaning top dog financier who takes a cut -- he gets a salary and yields great economic power.

Gradually, step by step, we are moving into the vision of New York Federal Reserve president Timothy Geithner who has called for unified regulation of global banking.

And you relate that "Toyota has finally become the world's biggest auto manufacturer". Yes, and their dealership has been a large employer in my local town. But now their SUVs and trucks are piling up like logs in a flooding stream; so much so that the local dealership is parking the unsold overflow in a church parking lot. They glimmer there as shining tombs to the floating currency policies and Regime of Milton Friedman.

As you point out currently the Federal Reserve interest rate as is well below the inflation rate (this is one of the factors that is driving gold higher)

And you remake that "The bonds markets have been broiling over lately. There is tremendous chaos building there that the Fed tries to paper over with artificially cheap lending rates from the Mother Of All Inflationary Machines: the US government".

Well they are running out of paper to cover the mess up.

The bond market place is starting to call interest rates on the 30 Year US Treasury Bond, $TYX, higher: first on March 18, 2008 and then just last week, when The Rescue began.

You ask, "Will the widening spread between mortgages and rates save the profit margins of bankers?" No, because of their level two assets and level three assets, the latter being marked-to-fantasy, and because of the debt kept off the bank's books in qualifying special purpose entitities, SPEs, and SIVs.

And you say "Off the cliff we fly"; how true, the downward stock market action yesterday was not in reaction to the housing report as the media suggests; but in response to the House of Representatives passing of The Rescue.

You relate: "The bill also states explicitly that borrowers cannot be forced to purchase an annuity or other financial or insurance product as a condition of qualifying for a reverse mortgage." Elaine thank you for this news, it is good news to me as I have an elderly friend who is very poor. I am going to recommend that he get a reverse mortgage and invest in gold at those vaults-on-the-web and in a gold ETF, like GLD in a trust account and not a brokerage account, as I expect there is coming within days or weeks at the most a or multiple systemic risk events where there is going to be a Financial Armageddon. This way that old person will at least be able to stay in his home, pay his taxes and have something to eat. However, I have to be realistic, he does not have the frame of mind that I do, and the advice will go unheeded (and unremembered probably too).

Those poor gnomes and yen carry traders, they are hurting right now; the remedy for them is now that the market is ticking up, like the Russell 2000, IWM, up 1.16% is to go short; like get the 0.5 percent interest loan from the Bank of Japan and go long the Proshares 200% bear market ETF, SJF, which is down 0.61%; it being down right now as I am writing makes a safe entry point. Yes they should be locking and loading up to the max, up to the gills, if they have gills, on this inverse today, so as the market continues on over the cliff they can continue to live in their island coves.

But as for me, I do not want a dollar denominated anything, I am glad I have some gold; at least for now, that is, before I have to sell it in order to by a morsel of food.


Richard, the funds can not go whole bear, even if they wanted to, since that would destroy their own book. They are too big to get out of their own way. When someone plays cowboy, like SemGroup, which correctly read the inflationary infusions and put their clients money into crude - the ax is brought down on their heads. Now that the hyenas made a kill, oil is going to go back up and the short sellers of crude are going to be ruined. The market has become detached completely from fundamentals. Fair is foul and foul is fair, hover through the fog and filthy air. I have a responsibility to those that entrusted me to safeguard their money. Otherwise I would not want to be anywhere near this market. It's like fighting off sewer rats on their home turf. Today, as the dollar was folding and Asia sinking, there was a v reversal in the dollar. It shot up a ninety degree path, as well on the euro and the chf and the cad. This was a payoff for the Fannie rescue of Japanese Fannie bonds. Fuck them? Nah, fuck us, said the Congress. You can vote for whomever you like, but meantime, fuck you.

Elaine Meinel Supkis

Oh, I have a lot more news about all this! From Asia, of course.

But first remember how too much debt is dealt with by this planet: it MUST vanish! It has to! So the method is whatever works. If you can't go bankrupt, you pick up a gun and begin shooting, for example.

The destruction must happen! Avoiding this means something is destroyed.

Japan, for example, killed inflation and eliminated the huge bubble by destroying the working class totally. Wages and values dropped like a rock. Now, inflation is eating the rest!

They are DYING. In South Korea, they are rioting. In China, the workers are alive, alert and full of energy.

The US is like Japan: workers dying.


When TSHTF, the ruling class of this country
will run into the arms of the Chinese, the Comrades,and the Sheets of Araby.

They will fall all over themselves vying
for their new jobs as overseers for the
new Massa's plantation. Our military's new
focus will, of course, be internal dissenters
that still think there is a constitution and
bill of rights.

Our new jobs,if we're lucky, will consist of making Santa Claus widgets for good little
Chinese kids.

Let us now turn to our hymnals and sing what the British troops did at
Yorktown so long long ago.

"If buttercups buzz'd after the bee,
If boats were on land, churches on sea,
If ponies rode men and if grass ate the cows,
And cats should be chased into holes by the mouse,
If the mamas sold their babies
To the gypsies for half a crown;
If summer were spring and the other way round,
Then all the world would be upside down"


Bear of Little Brain

History rhyming?

More power about to be devolved to the banksters on the eve of a recess, through legislation of their own creation, passed by corrupted politicians and introduced as a result of (planned?) financial collapse.

I'm thinking 1907 Morgan-induced Panic and 1913 Fed Act. But then, why bother with new tools when the old ones still work just fine?

Bernanke on inflation?:

I am in blood
Stepped in so far that, should I wade no more,
Returning were as tedious as go o'er.


Short term greed has taken root in corporate America as companies like the automakers look only to the next quarter...forget the future.

They focus on bonuses and compensation. They don't prepare their companies for the future and they dump people at a moments notice if they need to sweeten up the books. As a result, our industries have been destroyed.


Remember Grand Pappy Prescott Bush ?
And how the feds almost shut down his Union Bank of New York for cutting financial deals with the Nazis ? ----in 1943,no less, not 1933 !
Hell, he was just hedging his bets thinking
that if the Nazis won, he'd probably help
them run the US for them. Right now, the
Rockyfellers,Bushes,and the Beard and his
circle are probably getting ready to do the

Bear of Little Brain

Bit off-topic but, today, www.housepricecrash.co.uk had a link to this May 2008 article by Ellen Brown on Bear Sterns and Morgan. Maybe Elaine covered it at the time, but I don't recall it. The article considers that JP Morgan was bust, and the Bear Sterns take down was intended to avoid JPM going down. Since the Fed exists for the benefit of its international-banker owners, and as JPM was the most exposed at the time, I'm persuaded.
The article also has an interesting take on why Spitzer really fell from grace and a summary of Paulson's Fed power grab. Worth reading, IMHO.


Blunt Force Trauma

Another good one, Elaine.

"....we will continue to flap around the flame of cheap loans like a moth looking for sex with candles."

Damn! You figured out my trolling-for-bar-babes technique!

Just enjoying the (subdued for now) bonfire from north-of-the-border. We're next though. I can feel it.

Christian W

Who will play the role of McDuff? =p (I know! I know!)


Blunt.. no.. Canada is the only g8 country with a fiscal surplus. You have grains, wheat, oil, timber, water, NG and uranium. Many of the termites that wrecked this house will be fleeing up there for safety. That's why the chairrat of the Fed has his money in your bonds.


Elaine: I agree, destruction must happen.

Congress must say NO to more bailouts. Purge the system of central bankers, and restart with a public money supply.


I think what Blunt is saying, Calvino, is that he KNOWS the termites are coming there -- and we all know what termites do.

True story:

My neighbor had termites, so I called a pest company to come inspect my home. I told the inspector that I was worried the termites might just migrate to my house after they are forced to leave hers.

He stare past me into the rafters of my basement with a flashlight and just said: "They will. They will."

Reverse Mortgage Lender

I disagree and have been waiting for our portion of this bill for several years now. Our senior homeowners in California have homes worth 500-750k yet have been limited to old limits of $362,790. (meaning the difference of $362,790 to say 500-750k is literally out the window). Also seniors will be able to purchase a home with the reverse mortgage which will also stimulate the economy. We have 10,000 baby boomer's a day turning 60!

I posted the HECM amendments at: http://www.allrmc.com/articles/House_Passes_HR_3221.php

Elaine Meinel Supkis

Reverse Mortgage Lender, thine name really is Rednel Egagtrom Esrever!

Like all wannabe gnomes, you think I have no brains! Well, I was once a goddess...heh.

So...if the elderly in expensive houses couldn't get a reverse mortgage this means...they can leave something for the kids! Wow! Heirs! Instead of your bank.

If they are in trouble, they can sell the house and live elsewhere. I have moved 20 times in my life! And this was fun, I thought.

My elderly father has moved just as many times as I. And why in the name of hell do the elderly need REVERSE loans to buy a house? Weird.

When I bought and sold, I always made a profit. I have not had a mortgage of any sort since 1992. My elderly inlaws paid off their house in 1986. They have had no mortgage since and have therefore accumulated a lot of investments because they were not paying a mortgage. Or eating up their wealth.

The sinkhole of the reverse mortgage is simple: you start out with equity, property and are free and end up with nothing at all. And do note the GOP passed the tax cuts on inheritances just when this particular financial termite comes crawling into middle class homes!

So at the front end of life, in college, we go deep in debt and at the back end, we eat up all our value we try to accumulate. And in between, we are in debt, too.

This is why America has no savings yet we have a huge budget deficit paying for war, war, wars! We have an empire and are broke.


Ad immediately to the left of the "Chrysler Corpse" article: Tax Havens. The typical reader of The American Spectator must make a lot more money than I do.

One of their upcoming events "FX University, Your Chance to break free from the Dollar...".


Anybody who still trusts our politicians and financial czars to do anything other than fatten their own pockets at workers', consumers', and taxpayers' expense will get exactly what they deserve: continued theft, theft, and more theft. Trust the banks, brokers, and government at your own risk.

If you haven't figured this out yet from watching the events of the last 7 years (as well as those unfolding right now before your eyes) there's no hope for you. Just as socialists insist planned economies solve all problems, capitalists claim free markets solve all problems, and both of them are lying through their teeth to maximize their own power to pick your pocket. These ideologies don't solve any problems, they merely provide cover and opportunity for the most aggressive among us to rip off the most trusting.

The current "crisis" (which is simply the much-predicted - because very familiar - crumpling of the overextended debt markets) will end up further concentrating financial power and wealth for the fortunate ones and setting up the next round of overextended gluttony. Now, who was it that said 130 years ago this is exactly how capitalism is actually supposed to work? Oh yeah, Karl Marx.

Gavin Gaskins

Dear Elaine,

OBVIOUSLY: if you inherit nothing at all, why work to make it better? Why paint it? Why fix the plumbing? Wiring? Why do anything at all?

Correct, just like returning a rental car. I wonder if one has ever been returned freshly waxed.

Take care,


Gavin Gaskins

Dear Elaine,

One other note. Maybe I'm missing something here. If one were elderly and expected his home to fall in value, why wouldn't he want to execute a reverse mortgage? Wouldn't one then be "short" his house, a good trade if values fall?

Take care,




With the game so rigged, what is the best strategy for riding this mess out? There is a sense of helplessness watching how they change the rules on the fly to benefit themselves at the expense of the average person. One gets the feeling that cash, T-Bills, and any US assets are going to be worthless at the rate we are being sold out. Any comments or guidance would be appreciated.

cheap loans

It's interesting discussion.
Regarding loans, i could know a lot of new info.

Web Hosting Plans


About GM: blame GM management. For years GM ignored the Japanese automaker threat; GM were smug and arrogant. And stupid. They never figured it out. No world class innovation at GM that's for sure. You also can't ignore the deep and bitter hatred GM management had/has for the UAW as a factor for the decline. IMHO GM is getting its just desserts. Now if only GM could put its factories on barges...

Nicole Vickers

I was looking for blogs about Toyota when I found this blog. It's good to know that I'm looking for a car from the leaders in auto sales. I hope I can find good car dealerships in Indianapolis, Indiana that offer good Toyota cars. I'll be getting the used ones because I'm really tight on budget. It's good that there are a lot of Indianapolis car dealers we can ask for when it comes to Toyota cars. I remember seeing some Toyota cars on display the other day. I wonder if they're still there.

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