If there is no more credit to be had, how is it that the Federal Gov't, which only gets money from US economic activity, can borrow $700 billion (actually, per the proposal, create a $700 billion revolving line of credit) to buy crap from Gold Sax and company/

How the fuck does that actually work? We can borrow the money to lend to people that the people who lend us the money won't lend to.

Oh, but there's a credit freeze.

Fucking full retards, that what you are if you swallow this crap.

Where money for projects has not been found, we will print it." At least that's how they do it in Zimbabwe. Or maybe China will lend us a few more bucks if we change the name of the country to the "People's Republic of the United States of China".

After printing more money to pay for a bunch of crap, you'll start hearing that our inflation rate is "excellent" at 60% compared to other countries that have rates around 4500% or more.

I wish I could print money when I needed it.

Obviously Rocket, at 60% u r referring to the core inflation rate, without food and fuel.

That Dood is were it comes from, it is printed and the money supply is raised and the value of the US$ declines.

Leo

Leo Harold:

Obviously Rocket, at 60% u r referring to the core inflation rate, without food and fuel.

That Dood is were it comes from, it is printed and the money supply is raised and the value of the US$ declines.

Leo

Hey Leo:

Hope all is well, Things good here, so far. At least the lights are still on in the Loop.

I think that's the second shoe to drop. Sure, we let out $700 B, and next thing you know, interest rates skyrocket on the account of that.

This supposed crisis is really taxing my ignorance. I am just realizing how much I have to learn to find out if this is a scam or not and the lack of MSM investigation of the underlying claims is driving me nuts.

Normally, I can figure out the basics in less than a day. Here, a week into it, and I still can't figure this out-- all I know is that the people writing about it are all over the place and all of them are avoiding the core issue-- where is the alleged freeze? The bank to bank lending is temporarily frozen until more transparency vis a vis each entities exposure to the MBS's, SIV's and so forth comes around (and I suppose, the viability of the credit swaps). But even if that be true, isn't it the purpose of the Fed to provide alternative sources of liquidity?

Dead on Dood, it is the Fed's job to provide liquidity and if they can come up with $700 billion for banks why not arrange to lend it directly to homeowners, in principal lived in residences, at a very low rate so that they can pay off mortgages?

Force mortgage lenders to reduce lending rates to prime plus 2% for 5 years.

The problem may be that many of these defaulting mortgages are bundled by investment banks into bond packages that they have promised buyers 7% and if the actual interest paid is more like 5%, with 20-30% defaulting anyway because the homes were bought on spec and would not qualify for Fed help, then the investment banks are going to be on the hook for 3-4% of their entire mortgage portfolio.

So while main St needs help with their mortgages, the banks also need help because they are looking at 5 years of 3-4% losses on their entire loan portfolio.

How do you think BO did last nite?

I soo wanted him to say, " Look at me when you are lying about me you piece of shit and your fingerprints are all over all this deregulation of financial institutions"

Down in Costa Rica until next week and then off to the western states for 6 weeks before coming to CR for the winter.My offer is still open if you let me know in advance.March would be good or early December, before the 12th.

Regards,

Leo