Friday, Aug 10, 2007
Nice little dredging from the Beeb
BBC News: US exports poison
Bit of a tabloid title but a nice little article non the less covering "complete evaporation of liquidity in certain market segments of the US securitization market". The posts are a very interesting read and detail the scary side-effects that this US originating debacle will export to the UK and Europe.
Posted by enuii @ 11:34 PM (175 views) Add Comment
2 Comments
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1. enuii said...
First quoted comment:-
Yes, the worst is yet to come. The dollar is falling, the housing market in the US is DEAD, jobs are being formed here but they are poor paying jobs with no benefits - meanwhile all the factories are blackmailing their employees to take major cuts in pay and benefits or they will move to Mexico or China. Employers take courses on how to hire foreigners at (on average) 30% less pay than they would have to offer US citizens - and this is a problem for folks with Master's Degrees and PhD.s as well. Their income has actually not gone up and in some cases gone down in the past 5 years. The feds cannot raise the interest rate to prop up the dollar because the housing market would surely BURST all over the place. They are walking a tightrope of their own making and it's only a matter of time. If China, who holds trillions of US dollar investments, suddenly decide to play hardball, the whole of the West will suffer. Good time to put your funds in SAFE places....(gooby)
2. enuii said...
Second quoted comment (these are real americans):-
The "American Dream" has been set for a cave in for a long time thanks to over-inflated housing prices, the disappearance of rental housing, and regulatory complacency by the Fed Chairman, who is more concerned about inflation.
Sub-prime lenders have bombarded low income consumers with too-good-to-be-true teaser rates, and they have been aided and abetted by a culture that dictates home ownership above all else. Watching the adverts is enough to make one's skin crawl, for those who know the light at the end of the tunnel IS that of an oncoming train.
At the top end, real estate speculators have been gobbling up housing for a quick profit, and quite rightly, they are suffering as well.
This is how the Great Depression began, it is not unreasonable to believe that a segment of the American population will be experiencing the modern version of what their grandparents went through in the 30's.
Memories are short, and history is doomed to repeat itself. (chris)