Housing Bubble Bursting?

[moh malekpour]

From Main Street to Wall Street

From Main Street to Wall Street by Peter Schiff

 

[Couch Potato]

From Main Street to Wall Street by Peter Schiff

The dramatic collapse of the U.S. dollar, and the Fed's failure to respond, provides fresh evidence of American economic weakness. If the Fed believed that the economy was as strong as government statistics suggest, it would have the flexibility to reverse the dollar's decline. The only reason for their inaction is that the Fed is willing to accept higher inflation and a weaker dollar to contain the recessionary forces clearly building on Main Street.

The big problem is going to occur when the dollar weakens to the point of having inflation and recession at the same time.:new_all_coholic:

 

[Randolph Kinney]

The big problem is going to occur when the dollar weakens to the point of having inflation and recession at the same time.:new_all_coholic:

That is the forecast; stagflation afterwards.

 

[Greg Bell]

Stagflation............

 

[Randolph Kinney]

Pictures are worth a 1000 words - inflation is on the way

 

[moh malekpour]

The big problem is going to occur when the dollar weakens to the point of having inflation and recession at the same time.:new_all_coholic:

I think we aer already there, it is called stagflation.

 

[Austin]

I hope you guys remember how to solve that problem? 15% interest rates will do it every time.

 

[Randolph Kinney]

I hope you guys remember how to solve that problem? 15% interest rates will do it every time.

But this time it will be different. Instead of paper issued in dollars at 15%, it will be Euro, Yuan, Loonie, Peso, Pound, etc. That's how it was back in the 1970's with debtor countries and high inflation; you can't borrow in your currency.

 

[MARK JOLLIFF]

FWIW (For What It's Worth)

You might have a look at "ProShares Ultra Short Dow 30" (AMEX: DXG)
Set to "correspond to twice the inverse of the daily performance of the Dow Jones Industrial Average Index."
http://www.etfconnect.com/select/fundpages/etf_funds.asp?MFID=162963

Another interesting index (for a Put) is "Consumer Discretionary Select Sector SPDR Fund" (AMEX: XLY)
Covers industries such as: automobiles & components, consumer durables, apparel, hotels, restaurants, leisure, media and retailing.
http://www.etfconnect.com/select/fundpages/etf_funds.asp?MFID=50828


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That's exactly what I'm looking at. I like the Pro Shares funds. I bought Pro Shares S&P Ultra Short. Ticker Symbol SDS. Thanks for the info! I'll be waiting to see the futures market tonight or tomorrow to decide when to pull the trigger!

 

[Randolph Kinney]

When $ hit the fan - banks will not have them

BANKS' BALANCE SHEETS WILL HIT FAN IN JANUARY


If banks are finding [determining value] troublesome, then auditors aren't likely to be any more comfortable with their task. It's always devastating for a company when its outside, independent auditor refuses to attest to the truthfulness of a company report.

The problem involves a rule passed a couple of years ago that will put the banking industry's outside auditors in peril if they sign off on results that they really can't verify.

And right now there is nothing verifiable - or even understandable - about the banking industry's exposure to derivatives.

The auditors' dilemma was caused by a rule change that now prohibits banks from indemnifying auditors against mistakes.

A rule enacted in February 2006 by the Treasury Department, Federal Reserve and the Federal Deposit Insurance Administration now prohibit banks from doing that.