We are nearing the end of the sub-prime crisis. Foreclosures have gone down since 2008. That would be good news, but anyone who knows anything about mortgages knows the ALT-A resets are coming, then the option ARMs. Mortgages aren't going to stop resetting until 2012.
if one needs to find a 'single most important economic factor' to confirm a buy signal its right here, imo.
what magnitude will the next wave of foreclosures be?
we are on a glorious 30% upside run for the market. For those that didn't decrease stock exposure in early '08, they have a reprieve, somewhat. FROM THIS POINT, what are you willing to risk?
and to add
as long as the USD is the gold standard of fiat
in fact we got the world economy by the balls moreso than anybody else does
this is why china wants a change in the currency policies....and you've also hearing rumblings of a bretton woods II type deal from some in the euro region
china better start stockpiling the gold if they want to have any say
exactly tiz, gold reserves are key here for china which should drive the price of gold up some more soon
Not only does China have a fraction of what both the IMF and the US have in reserves
they also really didnt buy any hard US assets, only dolla bills
If they had hard assets they would be sitting prettier now.
At this point they will be forced to raise the price of their own currency gauging into that somewhat artificial trade surplus
Not only does China have a fraction of what both the IMF and the US have in reserves
they also really didnt buy any hard US assets, only dolla bills
If they had hard assets they would be sitting prettier now.
At this point they will be forced to raise the price of their own currency gauging into that somewhat artificial trade surplus
they are increasing it
recently they announced they climed to 1054 tonnes from 654 tonnes in 2003
5th in the world
china itself is the largest producer of gold
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its not "printing" (as in a weimer germany style printing press) ricboff if somebody has to buy the treasuries the return
the only thing to date that i'd call pure printing pretty much is the fed buying treasuries
the thing you have to realize is there are alot of "digital" dollars roaming around out there "digital" dollars are easily created and also easily destroyed
its not like we are circulating a humongous increase in actual physical dollars (like weimer germany or modern day example zimbabwe) and these physical dollars do not get destroyed
the only way you can ever hyperinflate is if the actual physical money supply getting into the hands of the average joe increases big time...
the "helicopter" ben type scenerio
recently they announced they climed to 1054 tonnes from 654 tonnes in 2003
5th in the world
china itself is the largest producer of gold
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its not "printing" (as in a weimer germany style printing press) ricboff if somebody has to buy the treasuries the return
the only thing to date that i'd call pure printing pretty much is the fed buying treasuries
the thing you have to realize is there are alot of "digital" dollars roaming around out there "digital" dollars are easily created and also easily destroyed
its not like we are circulating a humongous increase in actual physical dollars (like weimer germany or modern day example zimbabwe) and these physical dollars do not get destroyed
the only way you can ever hyperinflate is if the actual physical money supply getting into the hands of the average joe increases big time...
the "helicopter" ben type scenerio
also the china doesn't buy our treasuries scenerio just not gonna happen
china's economy would also go
up pretty quickly if they decided to do that....they depend on our consumption too much, they have no strong middle class to fall back upon
and its not like china is a stable society.....any major economic downturn could create alot of social unrest and big problems for the commie leaders
china's economy would also go
up pretty quickly if they decided to do that....they depend on our consumption too much, they have no strong middle class to fall back uponand its not like china is a stable society.....any major economic downturn could create alot of social unrest and big problems for the commie leaders
the fed is doing it up to i forget how many billions
for a while there they couldn't find a way to get mortgage rates beaten down
that seemed to do the trick
but the problem coming now the treasuries rates are starting to turn up now that the equity markets are getting a bit more confidence coming back in that arena
its the no "wiggle room" affect
the numbers on the stock market may go back to 10k i dunno
but the plight of joe six pack ain't gonna get any better for a long time
the standard of living in the US has peaked out and not going back up anytime soon
for a while there they couldn't find a way to get mortgage rates beaten down
that seemed to do the trick
but the problem coming now the treasuries rates are starting to turn up now that the equity markets are getting a bit more confidence coming back in that arena
its the no "wiggle room" affect
the numbers on the stock market may go back to 10k i dunno
but the plight of joe six pack ain't gonna get any better for a long time
the standard of living in the US has peaked out and not going back up anytime soon
thks for that
China has dramatically increased spending within, increasing Gold reserves (as prev noted) and decreasing monies on US treasuries. Neither can live without the other. China does have one big advantage over the US-- they will sacrifice millions of their own for the 'good of country'.
wonder who's making up for China's shortfall? Brasil? that would be ironic, a country that has seen its dollar collapse more than once
China has dramatically increased spending within, increasing Gold reserves (as prev noted) and decreasing monies on US treasuries. Neither can live without the other. China does have one big advantage over the US-- they will sacrifice millions of their own for the 'good of country'.
wonder who's making up for China's shortfall? Brasil? that would be ironic, a country that has seen its dollar collapse more than once
I demand some honesty in your rebuttal. You are ignoring the massive increase under Obama.
As I said...we could have worked our way through the Bush deficits.
Quadrupling the Bush deficits under Obama is something completely different.
Can you admit that or not? :think2:
