Signs of Economic Nosedive? ....

[Blackhatjack]

Countrywide files for bankruptcy.
American Mortgage has its credit lines cut off and cannot fund $300 mil in mortgages.
Bankruptcies running at all time high.
Housing inventory is high and sales are down.
Dollar hits low against the Euro, and other currencies.
Stock Market drops 750 points last week after hitting all time high(which was perfect time for those in the know to get out and book those profits and exercise those options)
Major Building Suppliers(Lowes/Home Depot etc) watch drop in sales.
Office Supply Stores report downturn in sales.

Are these just coincidental?

Or are we seeing the economic chickens come home to roost?

[melody]

1. No, it's the result of a planned hit on our economy

Courtesy of BushCo. It has been in the works for decades.

[lurky]

6. Just curious, why a planned hit?

What would be the benefit? The only one I can see is that runaway inflation could make the national debt easier to pay off... Is that it?

[Name removed]

7. Deleted message

Message removed by moderator. Click here to review the message board rules.

[melody]

14. No tinfoil hats are needed ... all the evidence is easy to read and access

These people plan stuff like this like we plan holidays.

[Deja Q]

22. Why make it so easy to access?

:tinfoilhat:

[melody]

24. Because they have the "conspiracy theory" sneerers to shoot it down

People like Gerald Posner, for instance, and some of the DU scorn-the-tinfoil-hat-theory crowd.
The cointelpro people have whole manuals, published and easily read, on how to discount people
who can see their handiwork as being "paranoid" and "conspiracy theorists". It articulates how
to make people who can't see patterns (or won't see them, in the case of intelligent people who
don't want to see them) feel superior to those who can and thus "rein them in". I'm not joking.
This stuff is all out there to be read. That's why they don't care. They have the mechanisms in
place to shut-up the children who see the naked emperors.

[melody]

13. It's a long story, but it goes back aways

Here's a link that outlines my view of things:

http://www.opednews.com/articles/opedne_melody_c_070713_the_bush_family_and_.htm

It isn't for the benefit of the US. George Bush's grandfather Prescott Bush started this all a long time ago.

[Gregorian]

2. Something I want to know...

Banks invest in the stock market don't they? So isn't it the case that when the stock market takes a serious crash, the banks will follow?

I keep getting no answers to that. But it just doesn't make sense. I'm nervous that electronic digits might just evaporate.

I see this lending economy as a house of cards. No, like dominoes. I put money in my banks. They say they have it and loan it to another bank who says they have it and loan it to yet another bank. I'm totally guessing now. And that is another topic, even if it is true.

I don't trust banks. And I don't trust FDIC in the event of a big meltdown.

[A HERETIC I AM]

10. I took and passed a test that covered that very question and i can't quite remember!

If i remember correctly, the regulations put into effect subsequent to the crash of 1929 included restrictions on the way in which banks could invest in the stock market and their associations with Broker/Dealers. The Broker/Dealers relationship rules were relaxed in 1994. This allowed banks to own brokerage and wire houses. Wachovia is a good example as are most major banks that have securities broker offices in their lobbies. You did not see those before 1994.

Since a Bank is a profit making organization, what they do with their profits is up to them and as far as i know, a bank is allowed to have an investment portfolio as long as the money invested IS NOT the same monies deposited by customers. Banking regulations have been modified over the years in order to insulate them from wild swings in the equities markets as well as ensure a cash supply should a "run" occur.

So the answer to your question "Banks invest in the stock market don't they? So isn't it the case that when the stock market takes a serious crash, the banks will follow?" is Yes and No. If the Stock Market crashes or goes down severely, the price of - say, Fifth Third or Wachovia or Bank Of America stock may also go down (of course) but your deposits are insulated from this activity. The two are not connected. Should a bank become insolvent however, that is where the Federal Deposit Insurance Corporation steps in to guarantee deposits up to $100,000 per customer per bank. (If i have this wrong, my apologies. If anyone reads this and spots an inaccuracy, please correct me)

The website below more than likely has the text of the pertinent legislation but i don't have the time to search it out for you...hell..it's quarter to two and i have to get up early!

http://www.bankersonline.com/index.html

Here is the Securities and Exchange commission's website;
www.sec.gov

[pansypoo53219]

16. S&L part II?

too large to fail? another mess georgie leaves for the next guy?

[Gregorian]

20. Hey, that's just as I guessed.

And thanks for taking up time to reply when you could have been sleeping!

It eases my worries a bit. I just sold my property and have all of my life earnings in the bank. I still don't like it. But I'm less inclined to be nervous.

[A HERETIC I AM]

3. Depends on who you listen to.

There are plenty of Chicken Littles and there are plenty of "All is Rosey" types.

Fact is, the issues you mention above are all related to one single sector of the economy - Housing.

The rest of the fundamentals look good (again, depending on who you listen to).

The economy runs in cycles. Ups and downs are to be expected but most of the indicators that i have been reading and hearing about do not indicate the beginning of a recession. The sub-prime woes are having the effect of tightening lending requirements but that is not a bad thing. As far as the drop in the dollar is concerned, once again, depending on who you listen to, there are many reasons for this. There are plenty on DU however that will tell you we are all fucked and you should run right out and buy water, gas and bullets.

A large number of companies are reporting positive earnings results. The market has pulled back so far just over 5%. Many analysts have been predicting a 10% correction for months.

We'll see.

[spanone]

4. bu$hco will leave this nation is tatters. ruined by complete incompetence on all levels.

8 years of corporations run wild. not a shred of oversight.

[beyurslf]

5. When did Countrywide file for bankruptcy?

[Emit]

17. Yeah, I had the same question. n/t

[hfojvt]

18. my quick google search

does not show that it did.

[Blackhatjack]

19. Correction: NO CONFIRMATION Countrywide filed for bankruptcy ...here are links

There have been conflicting stories regarding Countrywide Mortgage and American Home Mortgage Investment Corp filing bankrutptcy, with links to a Bloomberg story that has been updated 4 times.

At this time there appears to be no confirmation that either has filed for bankruptcy, but rather speculation that bankruptcy is imminent based on market information.

AHM saw its stock price drop 90%, and Countrywide disclosed substantial late payments --neither of which is confirmation of filing bankruptcy.

AS I can no longer edit the OP, please accept this correction update.

Link to Bloomberg story http://quote.bloomberg.com/apps/news?pid=20601087&sid=akujZzPrI_ss

Link to DU thread Countrywide filing bankruptcy?

[BlooInBloo]

8. Pop goes the bubble and the bubble goes pop.

[leftofthedial]

9. repukes have intentionally destroyed the economy

by stealing trillions

fucking idiot americans who vote repuke

insane, bone fucking stupid or criminals the lot of them

[madrchsod]

11. the 90`s boom was based on some really shaky foundations

and starting in 1999 the foundation collapsed. so bush decided to make things even worse by gutting the treasury,starting a war ,cutting taxes on the rich,and then creating the mortgage scandal that is collapsing our economy today. then add in the long term effect of over a trillion dollar war debt into the future the next president will have to deal with. the next president will have fundamentally change the course of this country so it can survive but we all know that this is not going to happen...

[enid602]

12. state

Makes you wonder how much worse the economy would be if we weren't in a war, and the Government wasn't spending at full throttle. What will happen when our creditors (of the US Government) pull the plug on us? What is the true state of the economy?

[OzarkDem]

25. Disagree

Clinton's economy was very strong. It took a lot of hard work (massive tax cuts, deficit spending and piling up trillions in debt for Iraq) to weaken the economy.

They used Greenspan to try to kick start inflation before the 2000 election with no luck.

[Flabbergasted]

15. Sub-prime rate disaster. Oil prices going to continue to rise. Retail sales down.

[Wcross]

21. link to lender failures. 100+ have failed.

http://ml-implode.com/

[OzarkDem]

23. Is this how they're blackmailing Dems?

Are they using some threat of economic catastrophe to scare Dem leaders into helping cover up Bush's crimes?

If so, our Dem leaders are being incredibly naive. If an economic crisis hits, there's little anyone can do to prevent it at this stage.