The economic reality will continue to worsen

Bear

Until all the King's horses and all the King's men,

will no longer hold be able to hold Humpty Dumpty

together. The strong will remain, the weak will fail

and times will get worse for working people and

retirees. We will survive, but it may be a very long,

cold winter indeed.

roadrunner

A friend to all working people has been saying "this is it" since just before the BSC buyout yet has been pooh-poohed by all the gold naysayers because the FED/PPT have been able to engineer gold takedowns and dollar rallys out of thin air. It still "is it" regardless which way the dollar runs. There is no longer any way to fix this but just to let it play out. This is just the 2nd inning of the derivatives take down. Mortgages are just a blip on the radar screen and by themselves could have been resolved. But the big plays have yet to be brought to the surface.

roadrunner

morgansforever

<<The strong will remain, the weak will fail>>

What if the strong and the weak fail?

Who's next Morgan Stanley or Goldman Sachs?

Scott

roadrunner

Recall that Goldman profited in 2007 by shorting the very MBS they sold years earlier. They seem to be well enough connected through the FED/Treasury to dodge most of the bullets that themselves created. Having Hank in the driver's seat didn't hurt. JPM is also well connected via the FED and so huge that it would take years of auditing to unwind their bets. They will be the last 2 standing. Everyone else that is too large too fail probably goes down before this is all over. Morgan Stanley might also escape the carnage. Having 3 big banks left just might about do it.

Expect the SEC to reinstitute the short sell rule once again to "protect" the financial houses next week from the very weapons they have used so brilliantly over the past several years.

roadrunner

BigE

Kudos to all the people here who refused to capitulate to electronic trading, very courageous in my opinion------------------BigE

morgansforever

<<Having 3 big banks left just might about do it.>>

By do it you mean 1929 all over again?

Scott

roadrunner

Having 2 or 3 big banks left doesn't infer anything to me about a 1929 scenario. I doubt if we can capitulate the banking sector and have more than 2 or 3 large and somewhat "sound" banks on paper.
JPM doesn't look good on paper but they are probably way too big too fail. They are after all the king of derivatives and the crown jewel in the FED's total end game.

The other thousands of smaller banks around the country aren't in the same hot water as these leviathans. Yeah, they have some mortgage and credit default swaps to wade through but typically that's only a few percent of their total assets. My own bank is a fairly large regional bank and only has around 5% of its total assets in derivatives and swaps. Now having derivatives at 150-300% of your total assets is a different story.

roadrunner

Connecticoin

<< <i>Until all the King's horses and all the King's men,

will no longer hold be able to hold Humpty Dumpty

together. The strong will remain, the weak will fail

and times will get worse for working people and

retirees. We will survive, but it may be a very long,

cold winter indeed. >>



Maybe if you changed your name to "Bull", things might get better.

COINB0Y

name semantics won't help at this point

57loaded

seriously

now you have an institution that has survived war, depression and verything else now BK...no bailout, worthless

BofA announces Merrill is absorbed,

what next .....all those Swiss bank accounts "buy" UBS??? (sorta joking)

AIG??? OMG this is very serious

those that have lots of cash on hand will be soaking every drop of financial ruin

RR...you have a lot of faith, more than i

i am sidelining this chaos for some time.

percyb

<< <i><<The strong will remain, the weak will fail>>

What if the strong and the weak fail?

Who's next Morgan Stanley or Goldman Sachs?

Scott >>



Why is it either or? How about both?

Bear

If the strong as well as the weak fail,

you will find me hiding out in a warm

cave, eating from my stash of donuts.

lathmach

Guess I'm lucky. I never had any money, so I don't see how I can lose any if there's a meltdown.

Ray

morgansforever

<<If the strong as well as the weak fail, you will find me hiding out in a warm cave eating from my stash of donuts>>

You gotta lay off the donuts, how about some venison burgers with lots of onions, cooked with Molson Golden?

Kick ass burger.

Regards,
Scott

cinman14

<< <i>Guess I'm lucky. I never had any money, so I don't see how I can lose any if there's a meltdown.

Ray >>

Bear

The continuing meltdown is evaporating perhaps 100 trillions of dollars

from the worldeconomy. This lost money in values, must be reinflated

thru the printing presses. This will cause hyper inflation within 12

months, that will cheapen the value of every dollar, euro, ruble ect, in the hands

of the people. I suppose that inflation is preferable to depression,

but it is only by a matter of a few degrees. What we are facing is a

global economic crises and the outcome looks very scary indeed. I sure wish

I had some beer left in the fridge. I could use a few right now.