BERLUSCONI : LEADERS MAY CLOSE WORLD'S MARKETS

Deudge ^

[AprilfromTexas]

4 later

[Gilbo_3]

Plant a fruit tree

why bother ?

just like drilling for oil, itll take 10 years before the payoff...do I really need to /s ???

[mlocher]

LOL

[mlocher]

This pretty much explains why gold bullion is not being traded much by brokerages. Lots of folks appear to be hoarding it right now.

[mlocher]

Ever hear about Hobbes' State of Nature, where life is 'solitary, poor, nasty, brutish and short'.

I think Hobbes was describing the Dark Ages. An omen?

[mlocher]

Who needs money?

They can't tax what you don't have!

[mlocher]

Great analysis. They are learning the lesson of 1929 on their own and with an added conundrum of nobody in charge. I am not sure that this requires US action — do you?

[mlocher]

How do they do appraisals in a DOWN market?

Usually houses sell in a down market. The appraisal is based on recent sale prices. Your point is that houses are not selling, so there is no way to value a house.

I agree in general with your analysis. I am not sure the bailout is for homeowners per se. It is for those that hold the mortgages. It enables them to better peg the value of the mortgage they hold. The theory is that if they know the value of their assets, then they will know what they can afford to lend. If the bail out solves the house pricing problem that you so astutely defined, then it only does so from a trickle down approach.

[NVDave]

My plan would be that the rest of the state has to submit to Eureka County, since they have the biggest mines in the state. ;-)

[mlocher]

Thanks!

[Lucius Cornelius Sulla]

I think Hobbes was describing the Dark Ages.

I think not. He was describing a theoretical state pre-existing all civil society. Also the term 'Dark Ages' is a bit of a canard, at least in its later stages following the Germanic tribes settling into their new digs. Of course the manorial system of serfdom was tough, but not generally brutal, and originated in late antiquity and continued, in the West, well into modern times.

[mlocher]

From what I understand, recessions and depressions are deflationary cycles.

As a general rule, correct. But there are exceptions, such as the Carter years, and Germany in the 1920s.

[mlocher]

Also the term 'Dark Ages' is a bit of a canard, at least in its later stages following the Germanic tribes settling into their new digs. Of course the manorial system of serfdom was tough, but not generally brutal, and originated in late antiquity and continued, in the West, well into modern times.

Yes, serfdom existed in much of Russia in the late 19th century and in some parts of Russia later than that. You are correct, the manorial system was not brutal. The brutality part is associated with the development of the social structure, especially when one lord would force vassalage over another. This was perhaps a 200 year interval.

[lentulusgracchus]

I assumed Berlusconi included bond and money and 4X markets in his comments about a closure.