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PreparationInBubbaNation
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Discussion Starter · #1 ·
My when the chickens come home to roost.

European banks may spread the financial instability

http://money.msn.com/investing/europes-banks-could-break-us-all-fleckenstein.aspx?page=2

The first point I want to share speaks to some of the trouble we saw during last week's craziness, particularly with regard to French banks. Quoting the LODM:


Hot debate: Could European banks fail?

"I wonder if people realize how bad things now are for EMU? Here is what I think has happened over the past week, and why the guardians of EMU are in a flap. For six months, or more, France has repeatedly called for a larger EFSF (European Financial Stability Facility, but suddenly, they are not."

The reason for that, he thinks, is that the French now realize that an increase in the EFSF would put pressure on their credit rating, which would not be a good thing, given all the derivative exposure of the French banks. (And, by extension, all banks in Europe, which collectively need to roll something on the order of $5 trillion in short-term debt in the next two years, according to financial commentator John Mauldin.)

Thus, the LODM believes that EMU officials are finding the walls closing in and themselves with fewer and fewer options, even as the stakes become higher and higher: "For EMU it is now fiscal union or die, and, barring a miracle, the odds are now on the latter."

That is a pretty potent comment. Yet, while he believes those in charge of the EMU will do "whatever it takes" to keep the status quo going, he does not think they understand what that would actually mean. Why would Germany, for example, vote to bail out other EU countries, perhaps on a permanent, ongoing basis, given the economic head winds its own economy is starting to face?
 

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PreparationInBubbaNation
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Discussion Starter · #3 ·
Student Debt - Next Bubble?

Thank you for your input and the correction.

Here is another

http://www.foxnews.com/politics/2011/08/19/student-debt-americas-next-bubble/

Figures provided by the Federal Reserve Bank of New York show that since 1999, outstanding student loan debt has grown by more than 511 percent. Over that same period, all other household debt in America – the sum total of all credit card bills, all auto loans, even all mortgage debt assumed during the great housing boom and bust that triggered the financial crisis – grew by about 100 percent.

Rising by $100 billion a year, outstanding student loan debt now stands at about $930 billion, and is expected to reach $1 trillion by year’s end.

“Student loan debt has become a macroeconomic factor; it affects the economy,” said Mark Kantrowitz, publisher of the financial aid website www.finaid.org. “Students who graduate with excessive debt are more likely to delay buying a car, buying a house, getting married, having children, saving for their retirement….They're spending less because they first have to tackle their student loan debt.”

Tackling that debt, at a projected monthly rate of .5 to 1.0 percent of the overall amount due, means that an estimated $5 to $10 billion is being sucked out of the economy each month.

What’s more, the country’s dismal job market leads to rising rates of delinquency and default. Unemployed, and under-employed, college graduates have a tougher time making payments on their student loans; as a consequence, the rate at which such payments are falling more than 90 days past due is on the rise.

Read more: http://www.foxnews.com/politics/2011/08/19/student-debt-americas-next-bubble/#ixzz1VhU0go8x
 

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Silent Defender
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I keep reading these same reports everyday. It's like watching a disaster in slow motion. Lets just get this over with. I wonder if things dragged on like this with the great depression?
Actually, yeah it did. Look at the years that passed from the crash in 1929, to the major bank runs that happened years later, to the expanded policies that were implemented by FDR a few years later. Also, some of the biggest one day stock market gains ever were in the 1930s. The big difference today is the sheer magnitude in which the Federal Reserve is pumping dollars into the system. Bernanke, having studied the Great Depression and becoming an "expert" on the period, says the Federal Reserve didn't do enough during the Great Depression to correct the market. So now with things as they are today he is doing exactly that. It may be dragging out the process and making things seem better longer, but he's only ensuring the inevitable correction happens that much more violently.
 

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I have been hearing rumors that Bank of America is about to go under. They are about to lay off 10,000 maybe more. Alot of the SHTF youtube video financial analysts have been talking about it. They say that the insiders know something is up and thats way gold is going crazy lately. Also it has now been made illegal to short the banks in Europe and that is what happened before the 2008 crash.
 

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I have been hearing rumors that Bank of America is about to go under. They are about to lay off 10,000 maybe more. Alot of the SHTF youtube video financial analysts have been talking about it. They say that the insiders know something is up and thats way gold is going crazy lately. Also it has now been made illegal to short the banks in Europe and that is what happened before the 2008 crash.
If the banks really screwed things up unintentionally in the 2002-2008 years, thus needing a TARP bailout, then I never heard of anything that would have changed their ways since then. Those bozoos have probably been making the exact same mistakes all along.
 

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Actually, yeah it did. Look at the years that passed from the crash in 1929, to the major bank runs that happened years later, to the expanded policies that were implemented by FDR a few years later. Also, some of the biggest one day stock market gains ever were in the 1930s. The big difference today is the sheer magnitude in which the Federal Reserve is pumping dollars into the system. Bernanke, having studied the Great Depression and becoming an "expert" on the period, says the Federal Reserve didn't do enough during the Great Depression to correct the market. So now with things as they are today he is doing exactly that. It may be dragging out the process and making things seem better longer, but he's only ensuring the inevitable correction happens that much more violently.
I wonder who, a few decades from now, will be the expert who does the exact opposite of what The Bernanke did (and is doing) in leading us to the Great Depression Redux...
 

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PreparationInBubbaNation
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Discussion Starter · #13 ·
I keep reading these same reports everyday. It's like watching a disaster in slow motion. Lets just get this over with. I wonder if things dragged on like this with the great depression?
Yes, they did, for fifteen (15) years. :xeye:

PS: some people starved to death in the Depression, we just didn't have the resources or information to count them.
And that is back when people produced more of their own food.

Imagine ...... one week after EBT cards stop working.
 
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