It’s Monday, and we are waiting to see if the markets continue to hammered this week. In the meantime, here’s a new glimpse into the fraud that helped bring on this collapse: [Thank you Vegas RE]
So just how extensive was the fraud anyway? Feel free to chime in with your four cents worth [Trite phrase adjusted for inflation.] or share your links ideas and stories- anything housing related.
This is an open thread, so the floor [or whatever you happen to be on at the moment] is yours.
UK House Bubble
Ohio Fraudclosure
Northern Virginia Housing Bubble Fallout
Mish's Global Economic Analysis
Bubble Meter
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This is so the Vegas undercurrent portrayed by dramas. Surprised? No. Funny? Yes. I remeber the mass hysteria of Y2K. There is a doctoral thesis somewhere for this phenomena. Mass “Get-rich-quick”. The scope is mind-boggling. I passed through Picabo, ID. There, in the depressed little nowhere town, was a weed infested failed “dream subdivision”. Insane.
twist -
Remember the night, almost two years ago, when the mainstream media suddenly discovered the US housing bubble had burst? Well today we have this Google News business cluster, which may be the closest thing we’ll ever get from the authorities announcing the arrival of World Depression Two (WD II). The collective impact of these stories is pretty impressive, so I’ve taken the liberty of saving the Google summaries below.
The Dow is wobbling (and currently up almost 50) but financials are down hard this morning, with IndyMac and our friends the monolines looking to be heading into panic mode territory.
It’s quite an end to ’08 Q2, so stand by for manic happy talk tomorrow followed either by Dow 9,000 or the Mother of All Bear Rallies
)
(Doomers place your bets
BIS General Manager On Leave With Effect From Tuesday
CNNMoney.com – 1 hour ago
BASEL -(Dow Jones)- Malcolm Knight , the general manager of the Bank for International Settlements, will be on leave with effect from Tuesday until the …
BIS says global downturn could be ‘deeper and more protracted …
Forbes, NY – 2 hours ago
BASEL (Thomson Financial) – The downturn in the world economy could be deeper and more protracted than expected as a result of the ongoing turmoil in …
BIS: ‘The Unsustainable Has Run Its Course’
Wall Street Journal Blogs, NY – 1 hour ago
For central bankers from around the world gathered in Basel for the Bank for International Settlements annual meeting Sunday and Monday, the the 78th annual …
BIS says emerging markets vulnerable to US slowdown
Channel News Asia, Singapore – 2 hours ago
BASEL – Emerging markets, which economists say are able to withstand the current financial crisis, could still be hurt by an economic slowdown in the United …
BIS Notes Challenges to Monetary Policy in Annual Report
ForexTV.com, NY – 1 hour ago
(CEP News) Frankfurt – On Monday, the Bank for International Settlements (BIS) released its annual report and highlighted that, due to the subprime mortgage …
BIS: Don’t Worry, Inflation Not a Problem Because Global Economy …
Clusterstock, NY – 1 hour ago
The Bank of International Settlements (BIS), the international body responsible for coordinating action among central banks, says the global economy is at …
Central Bankers Foresee `Sluggish’ World Economy (Update1)
Bloomberg – 21 hours ago
By Christian Vits June 29 (Bloomberg) — Central bankers expect the world economy to turn “sluggish” by the end of the year as soaring inflation and …
Growth risks to emerging economies increasing
guardian.co.uk, UK – 4 hours ago
By Sven Egenter BASEL, June 30 (Reuters) – Emerging economies risk taking a harder hit than so far anticipated from the slowdown in major industrial …
BIS-HKMA’s Yam says not running for BIS chief
Reuters India, India – 2 hours ago
BASEL, Switzerland, June 30 (Reuters) – Hong Kong’s central bank chief is not in the running to become the next head of the Swiss-based Bank for …
Bank watchdog warns of ‘tipping point’ in markets
Wealth Bulletin, UK – 51 minutes ago
The global economy could be facing a deeper and longer lasting downturn than analysts have predicted, the Bank for International Settlements has warned, …
Forex markets resilient when credit crisis hit
Reuters – 3 hours ago
BASEL (Reuters) – Volatility in foreign exchange trading jumped in August 2007 as the credit crisis broke but a broadened investor base helped the market to …
Core inflation losing accuracy as price predictor
Reuters – 3 hours ago
BASEL (Reuters) – Strong rises in commodity prices mean core inflation has lost some of its effectiveness as a predictor of headline price pressures, …
Credit crisis fallout to corset homeowner spending
Reuters – 3 hours ago
BASEL (Reuters) – US consumer spending is likely to suffer because of growing angst over household debt, rising unemployment and a clampdown on bank lending …
Prices for commodities and oil likely to stay high
Reuters – 3 hours ago
By Sven Egenter BASEL, Switzerland (Reuters) – More expensive tastes in food and an insatiable economic thirst for oil in fast growing emerging markets are …
BIS:C.banks no substitute for working markets-Knight
Reuters – 4 hours ago
BASEL, June 30 (Reuters) – Central banks cannot indefinitely prop up money markets by providing liquidity in exchange for assets which banks cannot sell on …
BIS: Major Econs’ Weakness Big Challenge For Emerging Mkts
istockAnalyst.com, OR – 3 hours ago
BASEL -(Dow Jones)- The Bank for International Settlements said Monday that growth forecasts for emerging-market economies are robust, …
BIS points finger at easy credit
RTE.ie, Ireland – 3 hours ago
The world’s top central banking body has said the world economy could be in for an unexpectedly severe downturn. The Bank for International Settlements …
RPT-BIS-WRAPUP-Central bankers on high alert against inflation
Reuters – 8 hours ago
By Krista Hughes and Natsuko Waki BASEL, Switzerland, June 29 (Reuters) – Central bankers issued a stern warning on Sunday against the dangers of surging …
Global downturn to last longer than expected
Times Online, UK – 3 hours ago
The global downturn may be deeper and longer than markets and economists have so far predicted while rising inflation may be stronger and more persistent, …
BIS’ Knight says central banks must make ‘forceful response’ to …
Reuters FX Hub, NY – 4 hours ago
- BASEL (Thomson Financial) – Central banks must respond forcefully to the resurgence of global inflation and raise interest rates in some cases, …
RBI not to act before July 29 policy meet: JPM
Moneycontrol.com, India – 6 hours ago
David Fernandez of JP Morgan feels that the current macro environment is not conducive for investors. The demand patterns point to correction in commodity …
BIS-HIGHLIGHTS-Inflation tops central bankers’ agenda
Reuters India, India – Jun 29, 2008
BASEL, Switzerland, June 29 (Reuters) – The global rise in inflation is top of the agenda at the central bankers’ gathering at the Bank for International …
Central banks on alert over inflation
PRESS TV, Iran – 8 hours ago
Central bankers from across the globe have warned against the dangers of surging inflation, saying market unrest has put them on ‘alert’. …
PBOC: Inflation should ease for summer
CCTV, China – 7 hours ago
Inflation in China is likely to ease a little in the Summer months, but there will still be some pressure from higher fuel and commodity prices. …
Global economy faces deep slowdown, warns central bankers’ club
Telegraph.co.uk, United Kingdom – 14 hours ago
By Edmund Conway, Economics Editor The global economy may be heading for a far deeper crisis than is expected and a bout of deflation in the world’s biggest …
World needs tough monetary policy to tackle inflation
Financial Mirror, Cyprus – 2 hours ago
The world needs higher interest rates to tackle a clear inflation threat, even though economic growth is likely to be hit harder than most observers expect, …
BIS-General manager Knight goes on leave from July
Reuters India, India – 1 hour ago
BASEL, Switzerland, June 30 (Reuters) – The general manager of the Bank for International Settlements, Malcolm Knight, will go on leave until his …
BIS: Global economy could face deeper downturn
Newsweek – 2 hours ago
By GEORGE FREY AP Business Writer | AP (BASEL, Switzerland) The global economy could face a deeper downturn than many currently expect amid rising inflation …
Central bankers unite vs inflation
Canada.com, Canada – 2 hours ago
Even countries like the United Arab Emirates, enjoying surging revenues from oil exports, say oil prices have gone too far. “Oil prices — we would like to …
Growth risks to emerging economies increasing – BIS
Moneyweb, South Africa – 1 hour ago
BASEL (Reuters) – Emerging economies risk taking a harder hit than so far anticipated from the slowdown in major industrial countries, …
BIS points finger at easy credit
RTE.ie, Ireland – 3 hours ago
The world’s top central banking body has said the world economy could be in for an unexpectedly severe downturn. The Bank for International Settlements …
BIS’ Knight says central banks must make ‘forceful response’ to …
Reuters FX Hub, NY – 4 hours ago
- BASEL (Thomson Financial) – Central banks must respond forcefully to the resurgence of global inflation and raise interest rates in some cases, …
Global downturn to last longer than expected
Times Online, UK – 4 hours ago
The global downturn may be deeper and longer than markets and economists have so far predicted while rising inflation may be stronger and more persistent, …
BIS renews slump fears as global economy pays the price
Telegraph.co.uk, United Kingdom – 14 hours ago
A year ago, the Bank for International Settlements startled the financial world by warning that we might soon face challenges last seen during the onset of …
Inflation tops central bankers’ agenda
The Australian, Australia – 16 hours ago
ACCELERATING inflation, fuelled by energy and food price spikes, is the overwhelming concern of central bankers. While financial market turmoil has been the …
RBI not to act before July 29 policy meet: JPM
Moneycontrol.com, India – 6 hours ago
David Fernandez of JP Morgan feels that the current macro environment is not conducive for investors. The demand patterns point to correction in commodity …
Central bankers unite vs inflation
Canada.com, Canada – 3 hours ago
Even countries like the United Arab Emirates, enjoying surging revenues from oil exports, say oil prices have gone too far. “Oil prices — we would like to …
Bank watchdog warns of ‘tipping point’ in markets
Wealth Bulletin, UK – 1 hour ago
The global economy could be facing a deeper and longer lasting downturn than analysts have predicted, the Bank for International Settlements has warned, …
King says drastic rate hikes could spark recession
SmartBrief, DC – Jun 27, 2008
Bank of England Governor Mervyn King told MPs that a majority of the Monetary Policy Committee had considered voting to increase interest rates this month. …
LSE, Lehman to launch pan-European equities trading platform
SmartBrief, DC – Jun 26, 2008
The London Stock Exchange has entered a joint venture with Lehman Brothers to establish a new equities-trading platform in Europe to compete with the …LON:LSE – LEH
Barclays Capital to charter ships to move commodities
SmartBrief, DC – Jun 26, 2008
Barclays Capital, which is bolstering its commodities business, plans to charter a fleet of ships to transport oil and other products around the world. …
Trichet again hints at interest rate hike in Europe:
SmartBrief, DC – Jun 26, 2008
European Central Bank President Jean-Claude Trichet indicated that an interest-rate increase is likely next week, saying that “particularly acute” inflation …
(further #2) -
Here’s a late addition to that cluster:
“Disorderly Dollar Drop Can’t Be Ruled Out, BIS Says”, by Kim-Mai Cutler, Bloomberg, June 30, 2008.
That Bank of International Settlements must be a real fun bunch of guys these days.
I work for the government and yes it is ok for managers and leaders to lie, it’s not ethical or right, but it’s really ok, so you can pretty much lie to anyone but the judge in the court system and you can lie to them too if you like.
I’m not saying a lie is going to precede fraud, but it’s pretty likely, so yeah fraud is pretty extensive and acceptable in our society.
‘All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.”
Arthur Schopenhauer
Let’s see, where are we? I guess it varies by individual, but I’m thinking number three.
Part of an email I sent to friends begins with a Gary Larsen cartoon, captioned, “The Bluebird of Happiness long absent from his life, Ned is visted by the Chicken of Depression.”
Here’s one of many sites with the cartoon.
http://awalkintheworld.blogspot.com/2008/02/trying-to-understand-depression.html?showComment=1202750220000
“What we can do in this dangerous moment”, by Lawrence Summers, Financial Times, June 29, 2008.
Yeah, it’s been that sort of day in financial markets
The funny thing is, these guys aren’t even talking about all the individual/private sellers who did the same thing!
They’re talking as though this was only a builder practice, when a quick perusing of Craig’s List a year or two ago would yield hundreds of large cash back offers.
It would only take a couple of these in an area to bid up the neighborhood comps in a lot of areas by a large two digit percentage, and even that excludes the more “usual” types of speculation going on at the same time! And people wonder how we could still have a long way to fall. {Sigh}
Off Topic: Punch drunk Wachovia, late with a clue.
http://biz.yahoo.com/prnews/080630/clm018a.html?.v=1
John -
Awesome. Hadn’t seen that in years, watched the whole thing. Making Movies is still one of my favorite albums, it’s still better than Brothers in Arms.
John–
I like this Dire Straits song too (“sometimes you’re the windshield, sometimes you’re the bug”)
So what’s wrong with a lil’ fibbin’? Wink Wink. Tell me Lies Sweet Little Lies, you all know that song. There’s Moral Hazard for you. Everyone knew it was too good to be true but WOW look at all the money they’re making. “I want some too” Just need some other fool to come along.
Anyone got a link to the new Eagles song “Business as Usual”? How Apropo, me thinks. It’s a slippery slope to hell and I feel my feet burning. I want it, I want it.
As requested
Thanks Mr. Twist. I’ve got the CD and believe the whole effort might be their best. A lot of maturity in lyrics as well as muscianship. And their voices sound as good as ever.
Unfortunately too many people will focus on the groovy beat and fantastic Joe Walsh lead guitar and miss the point. Just like the movie Wall Street became a must see for the crowd on the Street because it was so over the top I can see this song becoming their anthem.
Can’t you just see some big fat cat bankster driving around in his brand new Ferrari with this song on full blast singing along at the irony of how he and his brethern screwed us all to their everlasting gain.
Some day this economy’s gonna end.
Mr. Twist (#11) -
Thanks for that one, it was fun.
brucewho (#14) -
Perhaps you got that tag line from AllenM’s “Someday this war’s gonna end,” which is in turn borrowed from the movie “Apocalypse Now” (and Doom might do a remake entitled “Ambageddon Now” in a couple of weeks with ABK down nearly 20 percent today
)
Indeed the entire reason I hang around here is my fear that if the war doesn’t end the economy will. Doomers may recall a post I did eleven months ago called “Can We Afford the War We Want?” that documented how the good folks at the American Enterprise Institute don’t really think America can afford the War on Terror and entitlements like Medicare and Social Security too, so the latter will have to go.
Anyway, today is Canada’s national holiday so I missed all the fun of the joyride on Wall Street. I’m part of a 95-voice choir performing at the NS International Tattoo, so have little time to watch financials implode at the moment. It’s a wonderful program, and great therapy.
The opening show was earlier today in the afternoon, and we had a parade (about 2 km long) in the run up to that. We lined up next to the Trinidad and Tobago Defence Force Steel Orchestra, an amazing group of soldiers (and two young ladies from their Coast Guard) playing what are essentially modified 20 quart soup pots. They played a set while we were waiting, and the best part was that while they were wailing away we couldn’t hear a thing from the bagpipers that were going fifty feet up the driveway
Here’s a YouTube of the T&T group taken last summer at a festival in Scotland.
Here’s a Dutch group rehearsing part of a piece we’re doing at the finale of act I. They’re joined by three or four other bands and we get to vocalize for a few bars at the climax. You wouldn’t believe how thrilling it is to sing over a couple of hundred wind players in a hockey rink. I hope somebody manages to capture some bits of the final result and upload them over the next week. It turned out really well.
… and speaking of monolines,
This. Is. Not. Good.
“Fresh threat to bond insurers”, by Saskia Scholtes, Financial Times, July 2, 2008.
This is what I expect will happen in the economy sometime in the next several years.
At some point in the future, we will have hyperinflation in the US economy.
Housing prices will continue to fall in the US until hyperinflation begins, and that will cause housing prices to start rising again.
In that situation, housing prices will rise because, with enough inflation occurring, people will not be willing to just give away buildings.
.
twist
Tried out the iPhone-optimized site last night on my iTouch, it’s very nice. Definitely loads like lightening.
But when I hit “home” I get rendering issues at the top of the screen (title bar with “Housing Doom” is repeated & offset down a little with each press of “home”). I can’t promise that it’s not my unit, I haven’t updated the firmware in a while. But I thought you might want to check that out.
twist -
Having a ball at the Tattoo. There’s a version of Highland Cathedral near the end of Act II (unfortunately the choir is on deck backstage) that stands up pretty well to this one
Happy July 4th Weekend all!
twist -
Here’s part of the opening sequence from this year’s tattoo. Right at the end you’ll see the choir start their first number. I’m about the third blob from the left in the second top row
John-
The choir sounded good for the 15 seconds I heard.
I appreciate the videos- maybe someday I’ll catch it in person!