The Blue Ridges of WNC

The Blue Ridges of WNC

11/01/2007

Repent...the end is near..

Looks like reality bites comes to Wall St. Also looks like the Fed wasted a rate cut on this fool's quest. Mark my words, these short term injections of whoopie into this market are doomed in the long run.
These bankers, these money changers have been lying to each other for so long they have actually started to believe their own bullshit. Much like the Bush administration's run up to the war.
The damage is done and the results are playing out in the subprime mortgage market and the debt fiasco. What we really need to watch for next is the deterioration in the securitization of credit card debt. Since the home equity ATM has dried up, early figures are showing a marked increase in the use of credit cards to carry monthly debt.
There are signs of an increase in Americans paying their mortgages with credit cards, which is suicidal. Americans are carrying $907 billion dollars on their CC's and should this amount start to go bad in any appreciable percent it could make the subprime mess look like a cakewalk.
Unlike mortgages which have some collateral, even if it is an over valued home, CC's are unsecured, so any default is a total loss. Guess which banks are the most exposed in this market...the same ones that are shucking and jiving about their exposure to the subprime wreck
Oil at $100 or $125 a barrel...coming right up this week or next. The Chinese own us, and what they don't own is owned by Arabs, the Saudis, Kuwaits, anybody with oil. Hold on to your hats boys and girls.

2 comments:

Anonymous said...

Forget your hat. Bend over and kiss your Capitalist Butt Goodby. It was a nice ride. The Left is right?

Perry Eury said...

You mention China. I caught the recent CSPAN talk by Peter Navarro, author of The Coming China Wars, and I think he does a good job of describing a disturbing scenario that most everybody is ignoring.
http://www.peternavarro.com/comingchinawars.html