King of Credit Bubble Warns Inflation Ahead

[Nbadan]

Greenspan Says Recession Is a Possibility By End of Year
Slow Growth, Budget Deficit Worry Analysts
Associated Press
Tuesday, February 27, 2007; D03


HONG KONG, Feb. 26 -- Former Federal Reserve chairman Alan Greenspan warned Monday that the U.S. economy might slip into recession by year's end.

He said that the economy has been expanding since 2001 and that there are signs the current economic cycle is coming to an end.

"When you get this far away from a recession, invariably forces build up for the next recession, and indeed we are beginning to see that sign," Greenspan said via satellite at the VeryGC Global Business Insights 2007 Conference.

"For example in the U.S., profit margins . . . have begun to stabilize, which is an early sign we are in the later stages of a cycle," he said.

"While, yes, it is possible we can get a recession in the latter months of 2007, most forecasters are not making that judgment and indeed are projecting forward into 2008 . . . with some slowdown," he said.

Greenspan said that while it would be "very precarious" to try to forecast that far into the future, he could not rule out the possibility of a recession late this year.

The economy grew at a 3.5 percent rate in the fourth quarter of 2006, up from a 2 percent rate in the third quarter.

A survey released Monday by the National Association for Business Economics showed that experts predict economic growth of 2.7 percent this year, the slowest rate since a 1.6 percent rise in 2002.

Greenspan also warned that the budget deficit, which fell to $247.7 billion for 2006, the lowest in four years, remains a concern.

"The American budget deficit is clearly a very significant concern for all of us that are trying to evaluate both the American economy's immediate future and that of the rest of the world," he said.

Greenspan also said he has seen no economic spillover effects from the slowdown in the housing market.

"We are now well into the contraction period, and so far we have not had any major, significant spillover effects on the American economy from the contraction in housing," he said.


Washington Post (http://www.washingtonpost.com/wp-dyn/content/article/2007/02/26/AR2007022601351.html?referrer=email&referrer=email&referrer=email&referrer=email&referrer=email)

I can see the Drudge headline now: Democratic Congress Recession!!

[Nbadan]

Bernanke Lies. Lies. Lies. (http://www.smirkingchimp.com/thread/6430)


"Overall, the economy appears likely to continue to expand at a moderate pace over the coming quarters. As the inventory of unsold new homes is worked off, the drag from residential investment should wane. Consumer spending appears solid, and business investment seems likely to post moderate gains," he said.

"At this juncture, the impact on the broader economy and financial markets of the problems in the sub-prime market seems likely to be contained."

There are millions of foreclosures still to come, what we've seen is just the tip of the iceburg, and it's a big iceberg. We'll see how well the financial markets 'contain' the problems.

[johngateswhiteley]

...will this guy just shut-up. he was horrible as Fed Chairman and now he feels the need to still voice his opinion.

[Nbadan]

Not so American dreamish....


Sheriff Leo McGuire presides over foreclosure auctions in Bergen County, New Jersey, where the bidding for a home reached $1.2 million last June -- a record for one of the wealthiest counties in the nation.

Homes sold on the auction block for as much as $852,000 this month -- more than quadruple the median home price in the United States. County officials believe they are close to setting another record soon.

...

Her clients, while predominantly poor and minorities, increasingly are neither. Nowadays, homeowners holding professional careers with six-figure salaries regularly drop by her office. More and more they come from upscale Michigan communities such as Independence and Clarkston -- once the summer retreat for Henry Ford, founder of Ford Motor Co.

"Because of the financing that was possible, so many people bought the bigger house, the million-dollar house with the bowling alley or the tennis court outside," says Guzek, who works for GreenPath Debt Solutions, a nonprofit service based in Farmington Hills, Michigan. "People across all income brackets are having financial hardship."

Reuters (http://today.reuters.com/news/articlenews.aspx?type=domesticNews&storyid=2007-03-29T184850Z_01_N28302234_RTRUKOC_0_US-USA-SUBPRIME-FORECLOSURE.xml&src=rss&rpc=22)

Nothing to see here folks, move along....

[johnsmith]

Not so American dreamish....



Reuters (http://today.reuters.com/news/articlenews.aspx?type=domesticNews&storyid=2007-03-29T184850Z_01_N28302234_RTRUKOC_0_US-USA-SUBPRIME-FORECLOSURE.xml&src=rss&rpc=22)

Nothing to see here folks, move along....



How many times must I say this to you Dan, it's not the fucking governments fault that people bought into ADJUSTABLE mortgages and purchased homes they couldn't afford.

ADJUSTABLE mortages are just like they say, ADJUSTABLE. They don't ADJUST down, they ADJUST up.

This is just a guess, but I'm betting that 90% of the foreclosures are because people spent beyond their means and wouldn't have ever been able to afford the houses they bought had they went in on a traditional fixed mortgage.

Why do you continue to blame the government for this?

[01Snake]

Why do you continue to blame the government for this?

Give Dan some time. He needs to find an article to give you an answer.

[johnsmith]

Give Dan some time. He needs to find an article to give you an answer.



:lol :lol :lol

[Nbadan]

How many times must I say this to you Dan, it's not the fucking governments fault that people bought into ADJUSTABLE mortgages and purchased homes they couldn't afford.

ADJUSTABLE mortages are just like they say, ADJUSTABLE. They don't ADJUST down, they ADJUST up.

This is just a guess, but I'm betting that 90% of the foreclosures are because people spent beyond their means and wouldn't have ever been able to afford the houses they bought had they went in on a traditional fixed mortgage.

Why do you continue to blame the government for this?

Credit doesn't exist in a bubble. There is a finite amount of credit available in the market. When governments, like the U.S., the largest consumer of credit in the free world, over-extend their credit to do things such as finance unnecessary wars, that removes credit from the market that can be used for other purposes, like investment in the free market system to keep rates reasonably low here in the U.S.. So the U.S. government is very responsible for the increasing interest rates that are driving people's ARMs up as foreign lenders want a larger return to take our devalueing money. This is also why gas prices are going up, despite this being the off-driving season and although the M$M is blaming the crisis between Britian and Iran.

[Nbadan]

Besides, you can't blame people for falling for the come-on advertisments by some of these predatory lenders, and you certainly can't fault them for wanting to be a part of the American dream of home ownership. Fact is, in many states home prices are so high that the only way a family can afford a home was with a low-rate ARM.

Still, I don't expect you or any other conservative to have any apathy for the millions of former home-owners who will now become indentured servants to creditors, thanks to the new bankruptcy laws written by lawyers working for creditors and rubber-stamped by the do-nothing Republican legislature.

[johnsmith]

Besides, you can't blame people for falling for the come-on advertisments by some of these predatory lenders, and you certainly can't fault them for wanting to be a part of the American dream of home ownership. Fact is, in many states home prices are so high that the only way a family can afford a home was with a low-rate ARM.

Still, I don't expect you or any other conservative to have any apathy for the millions of former home-owners who will now become indentured servants to creditors, thanks to the new bankruptcy laws written by lawyers working for creditors and rubber-stamped by the do-nothing Republican legislature.


I like how you throw in the new bankruptcy laws in there. My God, people expect to be paid back now? How dare they not allow citizens to just default on their loans.

DON'T LIVE BEYOND YOUR MEANS.

And again, I do blame the people for falling for the predatory lenders sell, it's their own fault for not doing their homework. Their are plenty of apartments out their that are far cheaper then being in debt your entire life.

Sorry Dan, it's not the governments fault that people are lazy and expect too much without doing anything to earn it.

[01Snake]

Come on John. We all know EVERYTHING is GW's fault.

[xrayzebra]

Besides, you can't blame people for falling for the come-on advertisments by some of these predatory lenders, and you certainly can't fault them for wanting to be a part of the American dream of home ownership. Fact is, in many states home prices are so high that the only way a family can afford a home was with a low-rate ARM.

Still, I don't expect you or any other conservative to have any apathy for the millions of former home-owners who will now become indentured servants to creditors, thanks to the new bankruptcy laws written by lawyers working for creditors and rubber-stamped by the do-nothing Republican legislature.


Oh Goodness No! It isn't the peoples fault who got in
over their heads. It is those damn come-on advertisements.
And the mean old Government who borrows all that
money. For goodness sakes people should never be
held responsible for their own actions, right dan?

[johnsmith]

By the way, who should we thank for the fact that the interest rates got to a point as low as they did in the first place?

[Nbadan]

The subprime mortgage implosion will take even more steam out of the already slowing real estate market this year and beyond, according to a new economic report.

More than two dozen subprime lenders have shut down in recent months and others are scrambling to stay in business as a spike in defaults caused by borrowers unable to make payments has rocked the mortgage industry.

Now, as lenders tighten credit standards, the housing market will likely see further declines in price and output, senior economist David Shulman wrote in the quarterly Anderson Report to be released Monday by the University of California, Los Angeles.

“We suspect the problem in the subprime area is just the tip of the iceberg for the mortgage market as a whole,” Shulman wrote. “For all practical purposes, the subprime market is in the process of shutting down.”

Linky (http://www.msnbc.msn.com/id/17903104)

I smell multi-billion dollar sub-prime-lender bail-out that will make the S and L scandal bail-out pale in fiscal comparison.

[johnsmith]

By the way, who should we thank for the fact that the interest rates got to a point as low as they did in the first place?

[Nbadan]

By the way, who should we thank for the fact that the interest rates got to a point as low as they did in the first place?

Mostly Clinton, for not starting any unnecessary wars, saving the cold war return, and working in a bi-partisanship way with the Republican legislature to pass welfare reform.

[boutons_]

Clinton also paid down the national debt, saving 100s of $Bs of interest payments from going down toilet.

[johnsmith]

Mostly Clinton, for not starting any unnecessary wars, saving the cold war return, and working in a bi-partisanship way with the Republican legislature to pass welfare reform.


Interest rates went down after 9/11, Enron, Worldcom, and every other corporate scandal. These were the rates that everyone jumped in at and got their ARMs. They were artificially low and were destined to go BACK UP TO HISTORICAL NORMS. People that didn't do their homework are paying the price.


By the way, rates are currently at what they were at under Clinton.

[01Snake]

John..John..John. When are you gonna get it through your thick skull? No matter what happens, if it's bad, Bush is responsible.

[Nbadan]

Interest rates went down after 9/11, Enron, Worldcom, and every other corporate scandal. These were the rates that everyone jumped in at and got their ARMs. They were artificially low and were destined to go BACK UP TO HISTORICAL NORMS. People that didn't do their homework are paying the price.


By the way, rates are currently at what they were at under Clinton.

Interest rates went down because the U.S. government, for the first time since Reagonomics mortagaged our Social Security to fight the 'evil empire', projected a budget surplus. This eased credit for other areas, like housing, plus Asian countries and the real future empires, the oil empires, were pumping in billions of dollars in loans on the U.S. market on very friendly terms.

You really are gullible.

[johnsmith]

Interest rates went down because the U.S. government, for the first time since Reagonomics mortagaged our Social Security to fight the 'evil empire', projected a budget surplus. This eased credit for other areas, like housing, plus Asian countries and the real future empires, the oil empires, were pumping in billions of dollars in loans on the U.S. market on very friendly terms.

You really are gullible.


Sorry chief, the gullible ones are the one's that got in to an artificially low ARM and were too stupid or broke, or both to re-finance their loans before they ADJUSTED, WHICH THEY ALWAYS DO.

Funny thing is, I bought two homes at low FIXED interest rates during this time span and guess how many I've lost over the past year due to an adjusting rate????????? NONE, BECAUSE I FINANCED AT A FIXED RATE OF WHICH I COULD AFFORD.

You're losing your home aren't you jackass?

I still find it funny though that interest rates are now at what they were at under the great Bill Clinton.

It's also funny to me that the stock market dipping due to terrorism, and then corporate scandals coincided perfectly with the drop in interest rates. But I know Dan, it's all the President's fault.


Tell your wife and kids they can come stay at one of my houses while Daddy tries to get back on his feet but still find time to fight the silent helicopters hovering over his community.

[johnsmith]

And if you're struggling this much now, wait until the Dem's raise the taxes in 2012. It'll make Clinton's tax hikes look like child's play.

[Nbadan]

Sorry chief, the gullible ones are the one's that got in to an artificially low ARM and were too stupid or broke, or both to re-finance their loans before they ADJUSTED, WHICH THEY ALWAYS DO.

Funny thing is, I bought two homes at low FIXED interest rates during this time span and guess how many I've lost over the past year due to an adjusting rate????????? NONE, BECAUSE I FINANCED AT A FIXED RATE OF WHICH I COULD AFFORD.

You're losing your home aren't you jackass?

I still find it funny though that interest rates are now at what they were at under the great Bill Clinton.

It's also funny to me that the stock market dipping due to terrorism, and then corporate scandals coincided perfectly with the drop in interest rates. But I know Dan, it's all the President's fault.


Tell your wife and kids they can come stay at one of my houses while Daddy tries to get back on his feet but still find time to fight the silent helicopters hovering over his community.

:rolleyes

I've made thousands of dollars off of people's ignorance and if you would have been actually reading what I've been posting here, instead of fighting the certain inevitability, you would have too. In Texas, of course, your gonna finance with a 10-15-30 year fix because home prices are low to moderate there, but in high-price real estate markets, which you obviously know little about, ARMs are very popular because they make $350K and above home affordable, not only for investors but also for families.

My concern isn't so much for real estate investors, an investment carries some risk, but for the millions of families who will get caught in this ARM trap with no-where to turn, but you, like most Wing-nuts, don't concern yourself with such matters because things are good for you.

[smeagol]

Mostly Clinton, for not starting any unnecessary wars, saving the cold war return, and working in a bi-partisanship way with the Republican legislature to pass welfare reform.


Clinton also paid down the national debt, saving 100s of $Bs of interest payments from going down toilet.

Everything Clinton did is good. Everything W does is bad.

We get it fucking partisan morons.

[Nbadan]

Who's the fiscal conservative biatch?

[johnsmith]

:rolleyes

I've made thousands of dollars off of people's ignorance and if you would have been actually reading what I've been posting here, instead of fighting the certain inevitability, you would have too. In Texas, of course, your gonna finance with a 10-15-30 year fix because home prices are low to moderate there, but in high-price real estate markets, which you obviously know little about, ARMs are very popular because they make $350K and above home affordable, not only for investors but also for families.

My concern isn't so much for real estate investors, an investment carries some risk, but for the millions of families who will get caught in this ARM trap with no-where to turn, but you, like most Wing-nuts, don't concern yourself with such matters because things are good for you.

Funny, I have a home in Texas and in Colorado, so I guess I know something about high price real estate markets don't I jackass? So I guess you making "obvious assumptions" just like you do regarding everything else you read is once again false.

The millions of families that got caught up in the ARM trap, of which you are obviously one, made their own mistakes and should have done their homework. What do you propose we do for all the families that lost their homes due to interest rates returning to NORMAL? Should we raise taxes so that everyone in America can pay for stupid people like you and your mistakes?

[johnsmith]

Who's the fiscal conservative biatch?


:rolleyes

[Nbadan]

Figures, Colorado is a enviromental ses-pool. Denver is a dirty, dirty city.


Taxes will be raised anyway to pay for the coming multi-billion dollar bail-out of prime-rate lenders.

[01Snake]

Figures, Colorado is a enviromental ses-pool. Denver is a dirty, dirty city.



Really? Looks like Denver is rated as the 6th Cleanest U.S. City.

http://www.rd.com/content/openContent.do?contentId=15115

[johnsmith]

Figures, Colorado is a enviromental ses-pool. Denver is a dirty, dirty city.


Taxes will be raised anyway to pay for the coming multi-billion dollar bail-out of prime-rate lenders.


You've obviously never been to Denver. It certainly does collect some smog due to it's proximity to the Rockies, however, low pressure systems sweep that smog out regularly and therefore it usually is quite nice.

However, since you referred to the city as "dirty", please, take a visit to downtown Denver and see how it compares to downtown San Antonio, let me know what you find out.

Finally.....it figures that you've resorted to name calling, you didn't have a leg to stand on in this argument from the beginning anyway.

Enjoy your foreclosure.

[Nbadan]

Really? Looks like Denver is rated as the 6th Cleanest U.S. City.

http://www.rd.com/content/openContent.do?contentId=15115

That shouldn't tell you anything about Denver, but it should tell you a lot about the lack of any real EPA standards.

[Nbadan]

You've obviously never been to Denver. It certainly does collect some smog due to it's proximity to the Rockies, however, low pressure systems sweep that smog out regularly and therefore it usually is quite nice.

However, since you referred to the city as "dirty", please, take a visit to downtown Denver and see how it compares to downtown San Antonio, let me know what you find out.

Finally.....it figures that you've resorted to name calling, you didn't have a leg to stand on in this argument from the beginning anyway.

Enjoy your foreclosure.

What the hell are you talking about? Your a dumbass, and you obviously know nothing about what I have posted here in the past regarding this topic. I called the real-estate market slow-down when punks like you where still spasming about the resilience of Dubya's borrow-and-spend economy.

But then again, you wing-nuts always seem to have such short memories when another one of my 'crazy posts' turn out to be right. I have a track record I'm willing to stand by, a post history that can be researched, you have no credibility here. Try being right at least once first.

[01Snake]

What the hell are you talking about? Your a dumbass, and you obviously know nothing about what I have posted here in the past regarding this topic. I called the real-estate market slow-down when punks like you where still spasming about the resilience of Dubya's borrow-and-spend economy.

But then again, you wing-nuts always seem to have such short memories when another one of my 'crazy posts' turn out to be right. I have a track record I'm willing to stand by, a post history that can be researched, you have no credibility here. Try being right at least once first.

Holy shit! You're a bigger idiot than I thought Dan. You have as much credibility here as Croutons does....NONE. The only credibility you have here is your skill at cutting and pasting article after article. You have no thoughts of your own. You simply throw up an article and then add your little sentence at the end of each which usually amounts to "I told you so", or "It's Bush's fault".

[johnsmith]

What the hell are you talking about? Your a dumbass, and you obviously know nothing about what I have posted here in the past regarding this topic. I called the real-estate market slow-down when punks like you where still spasming about the resilience of Dubya's borrow-and-spend economy.

But then again, you wing-nuts always seem to have such short memories when another one of my 'crazy posts' turn out to be right. I have a track record I'm willing to stand by, a post history that can be researched, you have no credibility here. Try being right at least once first.



Again, resorting to name calling because your argument is weak.

[xrayzebra]

. I have a track record I'm willing to stand by, a post history that can be researched, you have no credibility here. Try being right at least once first.

14,542 (7.39 posts per day) X 0 = zero.


Some track record.
:p:

[Extra Stout]

Figures, Colorado is a enviromental ses-pool. Denver is a dirty, dirty city.


Taxes will be raised anyway to pay for the coming multi-billion dollar bail-out of prime-rate lenders.
A resident of Texas calling Colorado an "environmental ses (sic)-pool" is sort of like a resident of Brazil calling the U.S. a "hotbed of economic inequality."

[Nbadan]

A resident of Texas calling Colorado an "environmental ses (sic)-pool" is sort of like a resident of Brazil calling the U.S. a "hotbed of economic inequality."

hmmm...no, I wasn't vouching for Texas enviromental record, and I've been through and stayed in most of Colorado, probably more than ole gummy-boy.

[johnsmith]

hmmm...no, I wasn't vouching for Texas enviromental record, and I've been through and stayed in most of Colorado, probably more than ole gummy-boy.


Lived there for 10 years. Greatest state in the union.

[johngateswhiteley]

Lived there for 10 years. Greatest state in the union.

its a great state, no doubt. but lets be honest, Montana is the greatest state.

[01Snake]

its a great state, no doubt. but lets be honest, Montana is the greatest state.

A poll of all 50 people living in Montana agree. :D

[johnsmith]

its a great state, no doubt. but lets be honest, Montana is the greatest state.

Actually, Montana kicks ass too.

[johngateswhiteley]

A poll of all 50 people living in Montana agree. :D

low population is one reason i like it here.

[mookie2001]

jgw i might move to montana, where abouts do you live?

[Nbadan]

I have land in Montana.

[xrayzebra]

I have land in Montana.


I am so proud of you! With that a fifty cents you can buy
a cup of coffee almost anywhere, except Starbucks.

[Nbadan]

Don't get me wrong, Colorado used to be a beautiful state, but it got too crowded, especially Denver. Colorado Springs is better, but they got no Mexican food, Bill Miller's Bar-b-que or even a good chicken place, well, except for Popeyes. Plus, the major intersections are all backwards, what kind of shit is that? Keep your Garden of the Gods Pike's peak, and Grand Teton's just give me a good taco every now and then.

[johnsmith]

Don't get me wrong, Colorado used to be a beautiful state, but it got too crowded, especially Denver. Colorado Springs is better, but they got no Mexican food, Bill Miller's Bar-b-que or even a good chicken place, well, except for Popeyes. Plus, the major intersections are all backwards, what kind of shit is that? Keep your Garden of the Gods Pike's peak, and Grand Teton's just give me a good taco every now and then.


Spoken like a true fat guy, "they don't have enough taco's and Mexican food for me"......how cultured of you.

Plus, Colorado has more to it then just Denver and Colorado Springs ya know?


By the way, how's the foreclosure going?

[johnsmith]

colorado strip mines..aw the beauty



Everything in Texas...aw the beauty.