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User Info Morning Madness: Economic Fundamentals in forum [Ticker]
Genesis
Posts: 66463
Incept: 2007-06-26
A True American Patriot!
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http://market-ticker.org/archives/1212-M....

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I used to play flute; I wonder if I can play a fife?
I incite prosecutors to create "Bubba Sausage Parking Lot" projects
Darrell Issa has a middle finger and knows how to use it - Me
2009-07-14 08:19:07
Thystra
Posts: 6
Incept: 2009-07-12
FL
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Question:
Quote:

If we continue to attempt to play this game we will tip over the edge where interest compounded upon interest will rise in a parabolic blow-off, economically destroying literally everyone who is in debt, including our political system, as our federal government is one of the worst offenders of all.


If you have a fixed mortgage on a house, and presuming you stay employed/able to make the payment, what happens when interest rates shoot up? Contract remains honored?

Also, in the event of currency collapse where the dollar becomes 'worthless' what will happen to mortgages/debt at that point? I imagine that they just won't go away, but will be somehow rebased into a new currency/valuation.

2009-07-14 08:33:44
Rknoflach
Posts: 154
Incept: 2007-10-22

Macomb, MI
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I keep thinking we are going back to 1981 pricing, because that is when borrowing, both private and public, began its crazy uptick, and saving rates stalled. That means a 2,500 sq. ft. home in a good neighborhood for less than $80K. Excellent KD.

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All your base are belong to GS!
2009-07-14 08:35:13
Thewad
Posts: 146
Incept: 2007-06-26
Ontario Canada
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The political game will be played so long as there is someone to buy the debt...then BOOM!!! I watched a program on CBC last night called 10Trillion and counting which dissected the now 13 Trillion dollar debt. It was very enlightening and squarely blamed the Government for making political decisions over economic decisions. Exactly what you are saying.

2009-07-14 08:36:02
Genesis
Posts: 66463
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Quote:
If you have a fixed mortgage on a house, and presuming you stay employed/able to make the payment, what happens when interest rates shoot up? Contract remains honored?

The rest of debt service costs shoot the moon - its hard to honor your contract when your unemployed.

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I used to play flute; I wonder if I can play a fife?
I incite prosecutors to create "Bubba Sausage Parking Lot" projects
Darrell Issa has a middle finger and knows how to use it - Me
2009-07-14 08:37:32
Bozonian
Posts: 13051
Incept: 2007-09-01

PFT - Pure F'n Tin
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The television is another factor which makes this situation very different from the 1930s. Today the population is kept lobotomized by the boob tube. This is allowing the mood to stay floating even as the economy drives off the cliff, but the drop must still be taken at some point.

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If deficits don't matter, then the Federal Government can borrow the money it needs and stop taxing the citizens.

Everything I write is my opinion and not to be considered proven fact. Nothing I write should be considered financial advice.
2009-07-14 08:41:59
Dji
Posts: 554
Incept: 2009-04-21

orange park
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Gen,
that makes to much sense and people might understand it if they were told the truth. So instead call for inflation and green shoots, blah blah blah.
proof of deflation, check your junk mail from retail stores I get 20% off and 30%off fliers everyday from them. Hell yesterday I got a 20% off card from a marine co.
retailers are trying to give there inventory away.

D.C. is not smarter than a fifth grader!

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What goes up Must come Down- Alan Parsons Project
THE TRUTH HURTS! -Dji
2009-07-14 08:47:07
Genesis
Posts: 66463
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Yesterday's junk mail included a 40% off coupon for the entire purchase from the "tween-friend" store "Justice."

40%.

Someone got a same-store sale problem? These folks used to be called "Limited Too"; looks like they aren't doing any better calling themselves "Justice", and soon they'll be seeing the Justice - the bankruptcy Justice!

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I used to play flute; I wonder if I can play a fife?
I incite prosecutors to create "Bubba Sausage Parking Lot" projects
Darrell Issa has a middle finger and knows how to use it - Me
2009-07-14 08:48:43
Dji
Posts: 554
Incept: 2009-04-21

orange park
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next week it will be 50%

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What goes up Must come Down- Alan Parsons Project
THE TRUTH HURTS! -Dji
2009-07-14 08:51:32
Dji
Posts: 554
Incept: 2009-04-21

orange park
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then everything must go sale

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What goes up Must come Down- Alan Parsons Project
THE TRUTH HURTS! -Dji
2009-07-14 08:52:44
Pauperbear
Posts: 1256
Incept: 2008-01-22

norwalk, ct
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How do the 30 and 40% off sales at the retail level reconcile with the PPI increase?

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The truth is incontrovertible, malice may attack it, ignorance may deride it, but in the end; there it is.
Winston Churchill

2009-07-14 08:56:34
Lordhumongous
Posts: 1475
Incept: 2008-09-29

USA
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Good ticker, but you need to take immigration into account. There has been massive immigration since 1980. Don't forget that our charming Federal government underreports illegal immigration numbers by at least 20M.

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Freedom. Is there anything it can't do?

Last modified: 2009-07-14 08:59:12 by lordhumongous

2009-07-14 08:57:34
Genesis
Posts: 66463
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Producer prices: Input costs.
Consumer prices: What you pay.

What happens when input costs rise but you can't pass it on to consumers?


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I used to play flute; I wonder if I can play a fife?
I incite prosecutors to create "Bubba Sausage Parking Lot" projects
Darrell Issa has a middle finger and knows how to use it - Me
2009-07-14 08:57:52
Olex126
Posts: 123
Incept: 2008-01-27

London Ontario Canada
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"We must stop the idiocy now and face the facts before we take one step too far and find that there is no longer earth beneath our feet."

Excellent summation Karl. Thank You!

Thewad: Watched as well. An excellent dissertation on how we got to where we are.

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"Life is Tough... It's Worse When You're Stupid".... John Wayne
2009-07-14 08:58:41
Pauperbear
Posts: 1256
Incept: 2008-01-22

norwalk, ct
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You go out of bus. I get that. I'm just confused that the struggle isn't also shown on the input side. I guess what I'm asking is if the retailers can't pass on the cost who do the producers have to sell to? Won't they also hit a wall? a delayed time line?

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The truth is incontrovertible, malice may attack it, ignorance may deride it, but in the end; there it is.
Winston Churchill

2009-07-14 09:01:47
Iou
Posts: 116
Incept: 2009-03-16
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We’re already in free fall. The passengers just don’t know it yet. They’ve been told that the extremely smooth ride is due to a freshly paved road thanks to the stimulus bill. Sit back, relax and enjoy the ride.



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"When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it."
- Frédéric Bastiat
LEFT vs. RIGHT
Look up shell game and shills. WAKE THE **** UP!
2009-07-14 09:04:38
Falcor
Posts: 403
Incept: 2007-12-03

Online
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Bozonian wrote..
Today the population is kept lobotomized by the boob tube. This is allowing the mood to stay floating even as the economy drives off the cliff, but the drop must still be taken at some point.


This "spread" between herd perceptions and underlying math is extreme and suggests a comparably extreme energy release when the herd notices it and over-reacts in the opposite direction (Wave-3?).

I wonder how this spread compares to Roman Bread-and-Circuses times, South Sea Island times or Tulip times. It sure seems like it could be more extreme and enduring now because of reach, power and numbing effect of most media.

2009-07-14 09:06:06
Ptoemmes
Posts: 75
Incept: 2009-04-13
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I wonder if instead of noting when someone does not get "it" and then re-iterating "it" (of course repetition is needed for the dense) whether that person be challenged to relate how what they are proposing addresses "it".

I assume that even the likes of Forbes would admit to the veracity of the math when confronted with "it" even though they may be talking their crap (they have a personal agenda after all) instead of addressing "it" - the math.

So, if you could get them to even acknowledge that the math is a problem then ask them how does the they are spouting (Forbes and restarting securitization) address "it".

So, Mr. Forbes, how exactly would restarting securitization address the need to flush the excess debt out of the system, etc, etc, etc,?

Every time one of these yahoos says "this or that" needs to be done ask them how this or that addresses "it".

Pete


2009-07-14 09:08:47
Steelhead23
Posts: 280
Incept: 2008-09-09
Portland OR
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A few observations:
1. Nobody votes for truth-tellers. The sheeple want a nice bedtime story and a chocolate mint on their pillow. All gratis of course.
2. Politicians know this and feed it. The only future that matters to them is future elections and of course the big payday they'll get when they go through the revolving door.
3. It would take the "fear of God" to change this - and I don't mean the Zeus painted on the ceiling of the Sistine Chapel. I mean the God that leaves one begging on the streets - desperation.
4. If millions of Americans become desperate, things will change in ways no one can predict. No one should want to see this.
5. No disrespect intended Karl, but if the somnolent American public is to be awakened, it won't be via rational discourse, it will be when some televised purveyor of fairy tales changes his tune and tells the truth. Work on Forbes.

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short em all - let God sort em out!

Last modified: 2009-07-14 09:22:08 by steelhead23
Reason: typos

2009-07-14 09:20:28
Lordhumongous
Posts: 1475
Incept: 2008-09-29

USA
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Here is my observation:

Ninety percent or more of the American people deserve to experience the real per-capita GDP of the Great Depression for at least one generation. This country is a cultural and spiritual wasteland, full of people that don't give a rat's ass about anyone or anything other than their own immediate gratification.

No one respects the Constitution or the Bill of Rights, people don't want freedom for themselves much less for other citizens. They want cardboard cutout targets to hate and giveaways paid for by other people. Yes, both liberals and conservatives. Ninety percent of the time there is no difference other than the targets of their bigotry. Everyone wants a free ride and a dead horse to beat.

That is why I don't get all bent out of shape over the coming economic tsunami.

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Freedom. Is there anything it can't do?

Last modified: 2009-07-14 09:51:36 by lordhumongous

2009-07-14 09:36:24
Seedyrum
Posts: 267
Incept: 2009-04-09
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Genesis good ticker

yes you should run for public office and i will help with your campaign

TV does play a "negative" part in not informing the masses but then big businesses own the tv station and decides what is reported ass well as the newspapers>

Fraudulent accounting played a big part and will continue to play a big part of this charade>

Pres Obama has to change course and admit he and his economical team (as well as the past administration) diagnose the condition of the patient wrong and administered the wrong medicine> the longer he waits the more he will be blamed as being part of the conspiracy>

Changing ones mind isnt wrong when the facts change (although the facts never changed they were just ignored)

Pres Obama needs to implement change by firing Geithner and Summers>

2009-07-14 09:36:57
Reason&rights
Posts: 22
Incept: 2009-05-28

S. FL
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Bravo for Karl! Outstanding ticker...


And Steelhead - your are right on # 1-4 and likely 5. Unfortunately it is desperation that will awaken the sheeple and they'll clamor for the safety of the guy who gives them the biggest fantasy version of #1, while eroding the little rights and liberty left.


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"He that goes a borrowing goes a sorrowing." .....
"No man's life, liberty or fortune is safe while our legislature is in session."
BENJAMIN FRANKLIN

2009-07-14 09:39:17
Genesis
Posts: 66463
Incept: 2007-06-26
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I have no intention of running for public office.

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I used to play flute; I wonder if I can play a fife?
I incite prosecutors to create "Bubba Sausage Parking Lot" projects
Darrell Issa has a middle finger and knows how to use it - Me
2009-07-14 09:40:16
Goldbrick
Posts: 1500
Incept: 2008-01-23

Indiana
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Karl is is still valid that consumer spending is 70% of the economy? The nouveau socialism in gummint must have eaten into that somewhat?

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"The higher I go, the crookeder it gets."
--Michael Corleone
2009-07-14 09:42:41
Genesis
Posts: 66463
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Yes GB, more or less.

There has been a shift but its not all that significant.

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I used to play flute; I wonder if I can play a fife?
I incite prosecutors to create "Bubba Sausage Parking Lot" projects
Darrell Issa has a middle finger and knows how to use it - Me
2009-07-14 09:46:51
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