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Methodius

Banking Chaos Will Grow

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"Take the debt, and eat it up. It will make your stomach bitter, but in your mouth it will be as sweet as honey."

The failure of Bear Stearns marks a grim tipping point in the financial history of the West. The full force of ten trillion dollars of mortgage debt, created by the usurers at the behest of their masters, is now bearing down upon them, its power amplified by twenty fold by the evil of leverage. The financial hurricane that has been unleashed will leave a trail of pain and misery that will make that left by Katrina look like the work of a petulant five year old child.

It is worth considering what has happened to Bear Stearns in order to appreciate why the same fate awaits others of its type. Mortgages are safe! The last thing someone in financial distress does is default on their mortgage! After all, where would they live if they did? Ah, but the usurers have short memories. This is where they will live. Bear Stearns held many billions of dollars not just of sub-prime debt, but of supposedly top quality loans to the most upstanding of Americans. Now the value of all of those loans is falling at once, the cash reserves of their owners, which were never more than a few percent of the price they paid for these securities, are inadequate. Never since the Great Depression has the value of housing across the whole of the Unites States fallen simultaneously - the pricing models used by lenders have never before been subject to such extreme inputs and have been proved deficient. However, it does not take a financial prophet to see that a ten percent fall in the value of ten trillion dollars is a fall of one trillion dollars almost all of which will, eventually, be reflected in the value of the securitized loans held by the very same banks and hedge funds which profited so obscenely from their creation. This is not the same as the reversal of mostly imaginary wealth such as is seen in a stock market fall, this is the loss of cold, hard, cash. The American housing crash has a long, long way to go yet. The destruction of the firms that created the boom, will prolong the crash well past the point of equilibrium. By the time it has finished, most of the ten trillion dollars will be gone or inflated away to nothing. The biggest destruction of wealth in the history of the world will have been triggered by the immoral actions of the few who sort to feed off the toil of the many.

Bernanke knows this though. After all, did he not write the book on the subject? Does it not concern you that the action he is taking now is that which he says the Federal Reserve should have taken to prevent the Great Depression? If it does not, then it certainly should.

Who will be next? Who will the new Whore of Babylon sacrifice to mammon next? There is no doubt that more hedge funds will fail. There is also no doubt that many more major financial institutions will also. Lehman Brothers may well fail within the next few days, their CDS spreads have risen above 500 and their share price is suffering greatly but others will certainly emerge to surprise us all. As I have said before, the stories that will be written about the shattering of the western financial system will make the Grapes of Wrath seem like a children’s bedtime story. This time there will be no hope of a new life in California, only a relentless financial dust-bowl from which only the very strongest will emerge.

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...if you read this site last July you would have known BS were in trouble and there is no real surprise to the current status....that includes the fact ...this is only the beginning of the financial death spiral...hang on tight..... <_<

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"The biggest destruction of wealth in the history of the world will have been triggered by the immoral actions of the few who sort to feed off the toil of the many."

I think you may mean "sought".....

Edited by eric pebble

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Guest Steve Cook
"Take the debt, and eat it up. It will make your stomach bitter, but in your mouth it will be as sweet as honey."

The failure of Bear Stearns marks a grim tipping point in the financial history of the West. The full force of ten trillion dollars of mortgage debt, created by the usurers at the behest of their masters, is now bearing down upon them, its power amplified by twenty fold by the evil of leverage. The financial hurricane that has been unleashed will leave a trail of pain and misery that will make that left by Katrina look like the work of a petulant five year old child.

It is worth considering what has happened to Bear Stearns in order to appreciate why the same fate awaits others of its type. Mortgages are safe! The last thing someone in financial distress does is default on their mortgage! After all, where would they live if they did? Ah, but the usurers have short memories. This is where they will live. Bear Stearns held many billions of dollars not just of sub-prime debt, but of supposedly top quality loans to the most upstanding of Americans. Now the value of all of those loans is falling at once, the cash reserves of their owners, which were never more than a few percent of the price they paid for these securities, are inadequate. Never since the Great Depression has the value of housing across the whole of the Unites States fallen simultaneously - the pricing models used by lenders have never before been subject to such extreme inputs and have been proved deficient. However, it does not take a financial prophet to see that a ten percent fall in the value of ten trillion dollars is a fall of one trillion dollars almost all of which will, eventually, be reflected in the value of the securitized loans held by the very same banks and hedge funds which profited so obscenely from their creation. This is not the same as the reversal of mostly imaginary wealth such as is seen in a stock market fall, this is the loss of cold, hard, cash. The American housing crash has a long, long way to go yet. The destruction of the firms that created the boom, will prolong the crash well past the point of equilibrium. By the time it has finished, most of the ten trillion dollars will be gone or inflated away to nothing. The biggest destruction of wealth in the history of the world will have been triggered by the immoral actions of the few who sort to feed off the toil of the many.

Bernanke knows this though. After all, did he not write the book on the subject? Does it not concern you that the action he is taking now is that which he says the Federal Reserve should have taken to prevent the Great Depression? If it does not, then it certainly should.

Who will be next? Who will the new Whore of Babylon sacrifice to mammon next? There is no doubt that more hedge funds will fail. There is also no doubt that many more major financial institutions will also. Lehman Brothers may well fail within the next few days, their CDS spreads have risen above 500 and their share price is suffering greatly but others will certainly emerge to surprise us all. As I have said before, the stories that will be written about the shattering of the western financial system will make the Grapes of Wrath seem like a children’s bedtime story. This time there will be no hope of a new life in California, only a relentless financial dust-bowl from which only the very strongest will emerge.

Sh*t the bed!

I want my mummy.... :lol:

Edited by Steve Cook

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"Take the debt, and eat it up. It will make your stomach bitter, but in your mouth it will be as sweet as honey."

The failure of Bear Stearns marks a grim tipping point in the financial history of the West. The full force of ten trillion dollars of mortgage debt, created by the usurers at the behest of their masters, is now bearing down upon them, its power amplified by twenty fold by the evil of leverage. The financial hurricane that has been unleashed will leave a trail of pain and misery that will make that left by Katrina look like the work of a petulant five year old child.

It is worth considering what has happened to Bear Stearns in order to appreciate why the same fate awaits others of its type. Mortgages are safe! The last thing someone in financial distress does is default on their mortgage! After all, where would they live if they did? Ah, but the usurers have short memories. This is where they will live. Bear Stearns held many billions of dollars not just of sub-prime debt, but of supposedly top quality loans to the most upstanding of Americans. Now the value of all of those loans is falling at once, the cash reserves of their owners, which were never more than a few percent of the price they paid for these securities, are inadequate. Never since the Great Depression has the value of housing across the whole of the Unites States fallen simultaneously - the pricing models used by lenders have never before been subject to such extreme inputs and have been proved deficient. However, it does not take a financial prophet to see that a ten percent fall in the value of ten trillion dollars is a fall of one trillion dollars almost all of which will, eventually, be reflected in the value of the securitized loans held by the very same banks and hedge funds which profited so obscenely from their creation. This is not the same as the reversal of mostly imaginary wealth such as is seen in a stock market fall, this is the loss of cold, hard, cash. The American housing crash has a long, long way to go yet. The destruction of the firms that created the boom, will prolong the crash well past the point of equilibrium. By the time it has finished, most of the ten trillion dollars will be gone or inflated away to nothing. The biggest destruction of wealth in the history of the world will have been triggered by the immoral actions of the few who sort to feed off the toil of the many.

Bernanke knows this though. After all, did he not write the book on the subject? Does it not concern you that the action he is taking now is that which he says the Federal Reserve should have taken to prevent the Great Depression? If it does not, then it certainly should.

Who will be next? Who will the new Whore of Babylon sacrifice to mammon next? There is no doubt that more hedge funds will fail. There is also no doubt that many more major financial institutions will also. Lehman Brothers may well fail within the next few days, their CDS spreads have risen above 500 and their share price is suffering greatly but others will certainly emerge to surprise us all. As I have said before, the stories that will be written about the shattering of the western financial system will make the Grapes of Wrath seem like a children’s bedtime story. This time there will be no hope of a new life in California, only a relentless financial dust-bowl from which only the very strongest will emerge.

I'm impressed by your familiarity with the book of Revelation, also evident in your other posts.

I've been keeping a close eye, too.

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"The biggest destruction of wealth in the history of the world will have been triggered by the immoral actions of the few who sort to feed off the toil of the many."

I think you may mean "sought".....

I thank you for caring to read closely enough to spot my mistakes. It was very early in the morning when I wrote this and my attention was partly on other things.

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"The biggest destruction of wealth in the history of the world will have been triggered by the immoral actions of the few who sort to feed off the toil of the many."

I think you may mean "sought".....

Have I spelt 'pedant' correctly?

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I think the biggest issue is that banks dish out all their "profits" in the good times to shareholders who take them and sell up, leaving others to hold the baby.

IMHO banks should be forced to retain profits accross a "cycle" (Term to be defined) and so then they can dish out what is left at the end.

That would soon sort out most of the mortgage markets problems in one hit.

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Guest grumpy-old-man
I'm impressed by your familiarity with the book of Revelation, also evident in your other posts.

I've been keeping a close eye, too.

me too. ;)

I like your posting style Methodius.

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I think the biggest issue is that banks dish out all their "profits" in the good times to shareholders who take them and sell up, leaving others to hold the baby.

IMHO banks should be forced to retain profits accross a "cycle" (Term to be defined) and so then they can dish out what is left at the end.

That would soon sort out most of the mortgage markets problems in one hit.

A prudent Golden RULE you mean- yeah, we know that works :lol:

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Yes the fun has hardly started and yet we are already seeing major cracks in the system so what will it be like come december !

my guess is inflation will be let rip but this will not be the type of inflation where shopper go on a spending spree but more a question of the pound going down and forceing all imports up along with Browns taxes to bail out the next northern rock.

no matter what way you look at it we are all going to be in some pain but take comfort from that fact that no matter how bad it gets the pain will not last 25 years like it would if you had taken out a loan for a over priced property.

IT COULD JUST BE WORTH STACKING UP ONE EMERGENCY FOOD SUPPLIES unless of course you know just where the down/crash/depression/meltdown will stop.

Edited by Justice

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A prudent Golden RULE you mean- yeah, we know that works :lol:

Besides, we live in a global world (and I am a Global Girl) and it would only take a handful of countries to decide not to do that for the banks to ****** off out of the UK and take their trading desks elsewhere.

Maybe not a bad thing, but we don't have much else to support what is left of our economy at the moment.

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"Take the debt, and eat it up. It will make your stomach bitter, but in your mouth it will be as sweet as honey."

The failure of Bear Stearns marks a grim tipping point in the financial history of the West. The full force of ten trillion dollars of mortgage debt, created by the usurers at the behest of their masters, is now bearing down upon them, its power amplified by twenty fold by the evil of leverage. The financial hurricane that has been unleashed will leave a trail of pain and misery that will make that left by Katrina look like the work of a petulant five year old child.

It is worth considering what has happened to Bear Stearns in order to appreciate why the same fate awaits others of its type. Mortgages are safe! The last thing someone in financial distress does is default on their mortgage! After all, where would they live if they did? Ah, but the usurers have short memories. This is where they will live. Bear Stearns held many billions of dollars not just of sub-prime debt, but of supposedly top quality loans to the most upstanding of Americans. Now the value of all of those loans is falling at once, the cash reserves of their owners, which were never more than a few percent of the price they paid for these securities, are inadequate. Never since the Great Depression has the value of housing across the whole of the Unites States fallen simultaneously - the pricing models used by lenders have never before been subject to such extreme inputs and have been proved deficient. However, it does not take a financial prophet to see that a ten percent fall in the value of ten trillion dollars is a fall of one trillion dollars almost all of which will, eventually, be reflected in the value of the securitized loans held by the very same banks and hedge funds which profited so obscenely from their creation. This is not the same as the reversal of mostly imaginary wealth such as is seen in a stock market fall, this is the loss of cold, hard, cash. The American housing crash has a long, long way to go yet. The destruction of the firms that created the boom, will prolong the crash well past the point of equilibrium. By the time it has finished, most of the ten trillion dollars will be gone or inflated away to nothing. The biggest destruction of wealth in the history of the world will have been triggered by the immoral actions of the few who sort to feed off the toil of the many.

Bernanke knows this though. After all, did he not write the book on the subject? Does it not concern you that the action he is taking now is that which he says the Federal Reserve should have taken to prevent the Great Depression? If it does not, then it certainly should.

Who will be next? Who will the new Whore of Babylon sacrifice to mammon next? There is no doubt that more hedge funds will fail. There is also no doubt that many more major financial institutions will also. Lehman Brothers may well fail within the next few days, their CDS spreads have risen above 500 and their share price is suffering greatly but others will certainly emerge to surprise us all. As I have said before, the stories that will be written about the shattering of the western financial system will make the Grapes of Wrath seem like a children’s bedtime story. This time there will be no hope of a new life in California, only a relentless financial dust-bowl from which only the very strongest will emerge.

I want to live in a Hooverville, at least it will be free!

Do you think they'd still try and whack you for £125 per month council tax?

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Check out who Methodius is on wikki. ;)

and Methodius' location Arcadia

from wiki .....

"The Latin phrase Et in Arcadia ego which is usually interpreted to mean "I am also in Arcadia" or "I am even in Arcadia" is an example of memento mori, a cautionary reminder of the transitory nature of life and the inevitability of death. The phrase is most often associated with a 1647 painting by Nicolas Poussin, also known as "The Arcadian Shepherds". In the painting the phrase appears as an inscription on a tomb discovered by youthful figures in classical garb. It has been suggested that the phrase is an anagram for the Latin phrase "I! Tego arcana Dei", which translates to "Begone! I keep God's secrets." :o:huh::ph34r:

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  • 296 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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