Obama's Public Private Investment Program failure

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Wednesday March 25, 2009 · 7:23 AM PDT

2009/03/25 · 07:23

After briefly reviewing the Public Private Investment Program White paper that I found on the US Treasury Departments website I was left with more questions than answers. What I found was there is no fine print or "real" details into how this program will work other than the broad ideas of its framework. Here are the following questions I would like some answers too:

How did they come to assume that the markets will be stable? It appears it is wishful thinking rather than academic analysis.

How does a repackaging the same Toxic assets to the same current owners solve the problem? It’s a attempt at a free lunch that I believe no one will have a appetite for because the current owners know they have no value and unless the government gives them zero liability to hold them it will fail.

Poll

55 votes Show Results

Do you think Public Private Investment Program will fail?

55 votes Vote Now!

Do you think Public Private Investment Program will fail?

Yes

18 votes

28 votes

I Don't understand it either

9 votes

The Next Crisis!

Kcaridad

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Monday October 27, 2008 · 9:02 AM PDT

2008/10/27 · 09:02

The next big market event that will accelerated the global financial crises has unraveled and it is called the carry trade. In essence the carry trade is a strategy used by investors

"sells a certain currency with a relatively low interest rate and then uses the funds to purchase a different currency yielding a higher interest rate. A trader using this strategy attempts to capture the difference between the rates - which can often be substantial, depending on the amount of leverage the investor chooses to use".

http://www.investopedia.com/... http://www.investopedia.com/...

Cross post: http://www.dailykos.com/...

Poll

31 votes Show Results

Do you think the DOW will go to 3000 in 2009

31 votes Vote Now!

Do you think the DOW will go to 3000 in 2009

15 votes

Yes

9 votes

Never

3 votes

Not next year but may after

4 votes

Why McCain’s race for the White House is OVER!

Kcaridad

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Monday October 20, 2008 · 7:22 PM PDT

2008/10/20 · 19:22

We have all heard "it’s the economy stupid" from Democratic strategist James Carval. That saying has as much validity today as it did when Clinton ran against Bush Sr. Some reports from the main stream media are saying there are signs that the race is tightening http://www.cnn.com/... and I will not refute that. However, I believe the polls have steadied because the stock markets have stopped their recent plunge. Unfortunately for John McCain, the markets are only a few days away from a new downward plunge. This renewed downward spiral of the markets to new lows will seal McCain’s fait. It will stop the tightening in the polls and extend Obama’s lead. That lead will end on election day with a Johnson like landslide victory.

Poll

110 votes Show Results

Will the polls

110 votes Vote Now!

Will the polls

Extend

62 votes

Shrink

48 votes

The real John McCain

Kcaridad

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Thursday August 14, 2008 · 7:28 AM PDT

2008/08/14 · 07:28

Poll

53 votes Show Results

Is the Video to hard?

53 votes Vote Now!

Is the Video to hard?

Yes

5 votes

33 votes

Not hard enough

15 votes

Home prices tumbled by the steepest rate ever in May: Down 16.9%

Kcaridad

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Tuesday July 29, 2008 · 7:57 AM PDT

2008/07/29 · 07:57

I have written before how fatally linked the US economy is to housing because Americans have been using their homes as ATM machines which fueled spending on big and small ticket items.

http://query.nytimes.com/...

The majority of the United States economy is driven by domestic spending also known as "the consumer" and if Americans stop consuming then the economy will come to grinding halt. The problem for Americans is that their homes have been used as an ATM and that has come to an end.

"Home prices tumbled by the steepest rate ever in May, according to a closely watched housing index released Tuesday, as the housing slump deepened nationwide. The Standard & Poor's/Case-Shiller 20-city index dropped by 15.8 percent in May compared with a year ago, a record decline since its inception in 2000. The 10-city index plunged 16.9 percent, its biggest decline in its 21-year history
(Huffington Post, 2008).

http://www.huffingtonpost.com/...

Poll

75 votes Show Results

Has your standard of living gone down?

75 votes Vote Now!

Has your standard of living gone down?

YES

58 votes

17 votes

Dow 8000 and S & P 800 coming this Fall!

Kcaridad

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Thursday July 24, 2008 · 7:14 AM PDT

2008/07/24 · 07:14

Spending $1 Billion to Restore Fiscal Sanity

by John Harwood

"Peter G. Peterson wants people to focus on what he considers real news: the nation is going broke. Because he wasn't born yesterday, Mr. Peterson, co-founders of the Blackstone Group and a secretary of commerce under President Richard M. Nixon, will spend $1 billion in an effort to get the public's attention. The money, which comes from the windfall Mr. Peterson received when Blackstone went public last year, will finance a media blitz, starting with a documentary, "I.O.U.S.A.". The film aims to startle voters and politicians alike, and summon them to the task of closing the long-term imbalance between what the government".

Poll

138 votes Show Results

Do you think we will see DOW 8000 and S & P 800 this Fall?

138 votes Vote Now!

Do you think we will see DOW 8000 and S & P 800 this Fall?

Yes

40 votes

98 votes

A 30-year gap now exists in the average life expectancy

Kcaridad

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Thursday July 17, 2008 · 6:36 AM PDT

2008/07/17 · 06:36

I find it very telling that the richest country in the world, My America, with all its values is not living up to its potential because "The United States of America is becoming less united by the day. A 30-year gap now exists in the average life expectancy between Mississippi, in the Deep South, and Connecticut, in prosperous New England" (Leonard Doyle: July 17, 2008). Research has supported time and time again that disparities in health care access and socioeconomic status are key influences on health outcomes and according to the article huge disparities have opened up in income, health, and education depending on where people live in the US, according to a report published yesterday (Leonard Doyle: July 17, 2008).

Poll

139 votes Show Results

Which single factor has the greatest influence on Socio-economic status?

139 votes Vote Now!

Which single factor has the greatest influence on Socio-economic status?

Gender

2 votes

Race

9 votes

Religion

0 votes

Sexual Orientation

0 votes

Socio-economic status at birth

92 votes

education

36 votes

Get out of stocks and your local bank while you still can!!

Kcaridad

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Monday July 14, 2008 · 8:57 PM PDT

2008/07/14 · 20:57

The financial pains began last August but the underlying causes could be seen in the decades leading up to the summer of 2007. The Federal Research banks from around the world have pumped record amounts of paper money into the markets which created speculation and in turn created bubble after bubble. The result now is deleveraging and the acceleration of credit contraction which can be deflationary. I know most of you are saying how can there be deflation when gas is over $ 4, one tomato cost 2 bucks at the grocery store, and can’t afford to send your kids to college.

Poll

133 votes Show Results

Do you think your money is safe in the bank?

133 votes Vote Now!

Do you think your money is safe in the bank?

Yes

88 votes

45 votes

The Ongoing Financial Collapse

Kcaridad

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Saturday July 12, 2008 · 7:32 AM PDT

2008/07/12 · 07:32

"IndyMac Bank's assets were seized by federal regulators on Friday after the mortgage lender succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures". Huffingtonpost

I have been screaming on the top of my lungs about the ongoing financial crises for several years and my concerns have been validated ever since last Augusts’ market declines. Year over year housing prices have decreased by 15% but I will suggest that when this whole bear cycle is done housing will decline by 50%. Some areas will do better like here in Western PA which prices tend to be less exaggerated on the way up and down. In some areas of the Markets like in Southern CA, NYC, Boston, FL, Vegas, will see declines of over 70%. Looking at technical analysis I have already published on another blog that the DOW will decline to around 8400 and even the potential of 7600.

Poll

89 votes Show Results

Do you think the DOW will go to 8600

89 votes Vote Now!

Do you think the DOW will go to 8600

Yes

53 votes

36 votes

Housing Prices Have a Long Way to Fall

Kcaridad

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Friday May 16, 2008 · 9:12 AM PDT

2008/05/16 · 09:12

The housing bubble that ended in 2006 was created by the Federal Reserve action that lowered interest rate all the way down to 1% in 2003 (Leonhardt, 2003). This allowed home buyers to obtain money cheaply and purchase houses that were bigger than they would have been able to purchase otherwise. It also allowed people the ability to purchase a home that would not have been able to if rates where at historical averages. Lastly, lenders created "fuzzy" financing which enable people to buy homes that should not have been able to because they were a high a risk for defaulting. Not only were they a high risk for default but they were lent money in a manner that worked around the rules which were in place to prevent the abuses that occurred.

Some individuals were allowed to take over 100% of the mortgage amount by borrowing the closing cost and adding or rolling them into the principle. Others were allowed to put a small down payment that was less than the historical standard of 20%. Moreover, many took out adjustable mortgages in order to lower the monthly payment to increase their ability to purchase a home. Even worse yet, both lenders and home buyers used these tactics to buy a bigger house than what they could afford.

Poll

59 votes Show Results

When will the housing market stop falling?

59 votes Vote Now!

When will the housing market stop falling?

2008

2 votes

2009

14 votes

2010

19 votes

2011

7 votes

2012

17 votes

John McSame VS Reality and the Economy

Kcaridad

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Wednesday May 14, 2008 · 12:46 PM PDT

2008/05/14 · 12:46

McSame "the economy has made great progress under George W. Bush".

Reality: Home Foreclosures: Crisis Is Only Getting Deeper

CNBC is reporting

"It’s another record in the real estate market, and it’s not a good one. RealtyTrac, the online foreclosure sale site, which has also been tracking foreclosure activity since the beginning of 2005, reports the single largest one-month volume of foreclosure activity it’s ever seen."

The Federal Reserve can not keep up with the deluge of foreclosure and we are headed for a crisis. We should all be happy at this point with inflation because it inflation is the only thing holding this house of cards together. I say this because if we do not inflate we will deflate and then you are looking at a deflationary depression. The event I mention is the economic event of the late 1920’s. title=

Poll

25 votes Show Results

How much more will the housing prices sink?

25 votes Vote Now!

How much more will the housing prices sink?

10%

3 votes

20%

14 votes

50%

2 votes

more than than 50%

6 votes

Bankruptcy, coming to a municipality near you!

Kcaridad

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Thursday April 10, 2008 · 11:43 AM PDT

2008/04/10 · 11:43

Bloomberg is reporting:

"The advisers for Alabama's most-populous county were in Washington to keep federal officials informed of its negotiations with creditors, U.S. Representative Spencer Bachus said."

I guess we can all relax now because as the Bush administration said the mortgage crisis is contained. It appears it more like a Southern Cali fire with 50mph Santa Anna winds. Now whole counties are being affected by higher borrowing cost related to banks trying to recoup their sub-prime loses. Wow. These people are creative and are always looking to transfer wealth from the middle class to the rich.

Poll

47 votes Show Results

Are banks pick pocketing tax payers

47 votes Vote Now!

Are banks pick pocketing tax payers

YES

45 votes

2 votes

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