The poop has hit the fan

[cottonpicken]

Fannie and freddie have fallen off a cliff.

This is way beyond serious.

The debt will now have to be monetized.

It was before but behind the scenes.

Now its out in the open.

This past month and the next will go down in historie.

[charliep]

For background, see -

http://www.cbc.ca/money/story/2008/07/11/fannie-freddie.html

[cottonpicken]

Ha! good article

I like the"without them our economy would collapse"part.

The bottom line-more money HAS to printed at an ever incresing rate.

[cottonpicken]

And that lady and gentlemen is why commodities are flying.

[agstar77]

We may be soon be talking about the American Peso. This has serious implications for all of who trade with the U.S. The U.S. may have no choice but to try and cut rates again, inflation be dammed. They are caught in a vicious circle of their own making. When the new admin takes over, look for a pullback in foreign adventures such as Iraq. It will be a matter of economic survival not of politics. Foreigners holding U.S. bucks will be buying more and more of American fixed assets such as property or franchises like Bud.

[cottonpicken]

Hot off the presses indymac has collapsed.

[cottonpicken]

The theory is interest rates have to follow bond yields.

If the us cant attract investment interest rates must rise.

But they cant rise because of the shacky economy.

Rock and a hard spot.

Inflationary depression is to complex for most modern economists.

[agstar77]

It's called Stagflation. Japan has had it for a number of years.

[Fransisco]

http://www.economist.com/agenda/displaystory.cfm?story_id=11392398&fsrc=RSS

[cottonpicken]

The problem is were dealing with the the us residential housing system.

And the us dollar is the WORLDS reserve currency.

When the housing collapses,everything collapses around it!

Fortunate for us commoditie producers benefit the most.


The scope of the cluelessness is beyond funny.

Watch this weeks farmgate about the food "crisis".

The crisis is simply a syptom of a much greater disease.

When a loaf of bread in our society becomes a days wage-
Where was fran when the lights went out?

[agstar77]

Brings back stories of post First world war Germany, when a wheelbarrow of money bought a loaf of bread, or so the story goes.

[Fransisco]

Kicking in his standby generator, and carrying on.

[dalek]

And now US TV news is warning about people making a run on the banks tomorrow morning and depositors maybe only getting 50% of their deposits.... ok nothing like putting the idea in people's heads.

[agstar77]

That is the kind of stuff that will kill the stock market.

[jensend]

http://www.iht.com/articles/2008/07/14/business/14bank.php

analysts say as many as 150 american banks will fail in the next year. the snowball is picking up speed.