Are You SITTING DOWN Folks?

The Market Ticker ^ | 2/10/10 | Karl Denninger

[FromLori]

That must have been interesting. Was that one of those cases where they just got people pretty much off the street to sign loans so they could bank huge profits?

[RS_Rider]

That’s more like it, 6.3 million only cover a days worth of hes extravagance, on a slow day that is.

[dennisw]

things just keep getting crazier

This bllst is what most of the bubble years fake prosperity was like. just jacking money around

[dennisw]

I started saying, in April of 2009, that the US is a dead country walking. Nobody - not even Sarah Palin - can get us out of this mess. It will just have to happen and we can pick up the pieces afterward. And most of the rest of the world is going down with us. Maybe Greece will be first, followed by Spain. Whatever happened to Iceland?

Iceland went back to basics ...back to fishing and selling that fish to the rest of the world... That's what they know best
When we hit bottom what will the world want that we produce?
Definitely soybeans and grains and agricultural commodities
Some manufactured goods

[Slip18]

I wouldn’t buy gold ever (except in jewelry). It’s too unstable. Tomorrow it could be down to $50 a Troy ounce. When you start seeing so many commercials and in paper flyers about buying gold, you know you’re too late.

[butterdezillion]

Agriculture will be killed if the EPA has any say in the matter.

[RFEngineer]

Yes, they are.

[Tunehead54]

To all: Thanks (belatedly) for your insights. I have looked around and with the entire world economy at risk for whatever reason this GNMA fund held up in the recent meltdown. Its got a 4% return and didn't dive with the DOW in 2008 - any input would be appreciated - I'm just looking for something that will hold its value in another crash ...

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That's the Vanguard GNMA vs the Dow over two years ...

This is it over its life vs the Dow - note the lack of appreciation but for holding value it seems to be a strong candidate.

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Full disclosure: I have no interest or connection with this fund - another FReeper mentioned this equity during the 2008 crash - there are other Ginnie Mae funds with similiar results - note: GNMA has avoided the excesses of FNMA and FReddie Mac as far as I know ... hope this helps! ;-)

[101voodoo]

I have (and have had) a portion of my money in both the Fidelity as well as the Vanguard Ginny Mae Funds. Since they are 100% invested in gov’t backed securities, as long as the gov’t is standing you will get your money back. The avg maturity for these funds is about 3-5 years so unless you will be needing the money withing that period of time, it’s a relatively safe bet.

The Fid fund has returned a solid (in today’s world) 6+% return over the past many years. There expenses are higher then Vanguard but so is the return

http://quote.morningstar.com/fund/f.aspx?Country=USA&ss=gf&Symbol=FGMNX

[UCANSEE2]

What kind of punch do they have in mind?

Here we are, two days later.

All I heard was that Imanutjob made some big speech.

If that was a 'punch', it missed it's target.

[UCANSEE2]

$6.3 Trillion

Thank you.

[UCANSEE2]

To late it ended on Tuesday, January 20, 2009, we just didn’t know it.

Yeah, things sure have gone to hell since then. I guess it should have been obvious.

[Myrddin]

All "nutjob" said is that Iran is a nuclear state. They have the ability to take the 20% enriched uranium to 80% or beyond necessary for a bomb. That first 20% is lots of work considering the natural levels of U235 in yellowcake are around 0.7%. That's a 20-fold+ enhancement. Going from 20 to 80% is a 4x enhancement. Much less "needle in a haystack" searching for the desired element.

[UCANSEE2]

All "nutjob" said is that Iran is a nuclear state.

Well then, I don't know about anyone else, but I am certainly 'stunned'.

(/s)

[RockinRight]

If EVERYONE defaults does it matter?

If Ed owes Jim $10,000, but Jim also owes Ed $10,000, and neither pays, are they really out anything?

(Yes, I know it’s more complicated)

[LomanBill]

>>Where’s RICO?

“In five years the family will be completely legit”
—Don Corleone

Life imitating art or vice versa?

[LomanBill]

>>Where's RICO?

 

"Brooksley, we are never going to agree on fraud, you probably think their should be rules against it, I think the market will figure it out."

--- Alan Greenspan

FRONTLINE: the warning: analysis: more about brooksley born | PBS

Nothing like puting the wolves in charge of the henhouse ehh?

 

Alan Greenspan ought to be hung by his garters from a Federal Prison flagpole.