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post #51 of 132 (permalink) Old 11-06-2007, 03:46 PM
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Originally Posted by deathrattle View Post
Not doomed, but maybe we will be forced to live more by our wits. Oh dear, sorry about that guage, you are doomed.
And some of you will have to live more by your halfwits...

Don't believe everything you think
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post #52 of 132 (permalink) Old 11-06-2007, 08:57 PM
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Sub Prime Snapshot

Here is a VERY good article from the Beeb on the SubPrime issue that focuses on Cleveland as an example city and the impacts. I would clip the whole article but there is a very good interactive chart in the middle that you can button on to show sub-prime saturation, foreclosures, black population and DeutscheBank ownership in the mix.

And J, it is not that I am being negative. It is that I am trying to clamor at the top of my keyboard for folks to quit supporting the inherently stupid economic policies [and those who blindly make them] that have gotten us into this mess. While the "global economy" might be cooking along, the US economy is plowing into an iceberg and Capt Bush keeps ordering room service for more ice.

________________________________


Foreclosure wave sweeps America
By Steve Schifferes
BBC economics reporter, Cleveland, Ohio
5 November, 2007

A wave of foreclosures and evictions is about to sweep the United States in the wake of the sub-prime mortgage lending crisis.

This could destabilise the US housing market and may also lead to further turmoil in financial institutions, who collectively own $1 trillion (£480.6bn) worth of sub-prime debt.

Cleveland, Ohio, is an industrial city on the banks of Lake Erie in the US "rust belt".

It is the sub-prime capital of the United States. One in ten homes in the city is now vacant, and whole neighbourhoods have been blighted by foreclosed, vandalized and boarded-up homes.

Many of these homes are now owned by the banks and investment pools owning the mortgages, and the company making the most foreclosures in Cleveland is Deutsche Bank Trust, which acts on behalf of such investment pools.

Cleveland is facing a rising crime wave, and the cost of demolishing the vacant houses alone will cost the city $100m of its tax base.

According to Jim Rokakis, the County Treasurer for Cleveland's Cuyahoga County, "Wall Street strategies that made the cycle of no-money-down, no-questions-asked lending possible have sucked the life out of my city".

GO TO ARTICLE FOR INTERACTIVE MODULE

<MORE>

BBC NEWS | Business | Foreclosure wave sweeps America

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post #53 of 132 (permalink) Old 11-06-2007, 09:01 PM
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Not doomed, but maybe we will be forced to live more by our wits. Oh dear, sorry about that guage, you are doomed.
Maybe just half doomed.

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post #54 of 132 (permalink) Old 11-06-2007, 09:21 PM
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...doomeda doom doom...doom doom! Just the facts mame...

Don't believe everything you think
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post #55 of 132 (permalink) Old 11-06-2007, 09:50 PM
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It really won't be gloom and doom until China starts worrying about the Dollar.

NOW you can start worrying.
____________________________

Dollar Falls to Record on China's Plans to Diversify Reserves
By Stanley White and Kosuke Goto

Nov. 7 (Bloomberg) -- The dollar slid to record lows against the euro and the Canadian dollar on speculation China's plans to diversify its foreign exchange reserves will involve selling U.S. assets.

The currency slumped after Cheng Siwei, vice chairman of China's National People's Congress, told a conference in Beijing the country should improve the structure of its $1.43 trillion of foreign reserves by favoring stronger currencies. It pared losses after he later added that doesn't mean buying more euros. The dollar also slumped to a 26-year low against the pound and a 23-year low against the Australian dollar.

``Cheng Siwei, a China adviser, apparently said China should diversify into strong currencies,'' said Lee Wai Tuck, a currency strategist at Forecast Singapore Ltd. ``This is one of the comments that triggered the buying of the euro and selling of the dollar.''

The dollar slumped to $1.4666 per euro, the lowest since the 13-nation currency debuted in January 1999, before trading at $1.4615 at 11:31 a.m. in Tokyo from $1.4557 late yesterday. It fell to $1.0975 per Canadian dollar, the lowest since Canada's currency was floated in 1950.

Against the pound, the dollar declined to $2.0947, the lowest since May 1981. The currency slid against the Australian dollar to 93.75 U.S. cents, the lowest since April 1984 from 92.87 U.S. cents. The dollar may fall to $1.4700 per euro today, Lee forecast.

China Investment Corp., which manages the nation's $200 billion sovereign wealth fund, said last month it may get more of the nation's reserves to invest to improve returns.

Fed Rates

The currency also slid against higher-yielding currencies including the Australian dollar and the Norwegian krone as losses from subprime-mortgage defaults added to pressure on the Federal Reserve to lower its target for the overnight lending rate between banks to 4.25 percent next month.

The Reserve Bank of Australia raised its benchmark borrowing cost to 6.75 percent today, while traders added to bets Norway's central bank will increase its 5 percent deposit rate.

``The interest-rate outlook is dragging down the dollar against major currencies such as the euro and the Australian dollar,'' said Seiichiro Muta, director of foreign exchange in Tokyo at UBS AG, the world's second-largest currency trader. ``I cannot see the bottom of the dollar depreciation yet.''

It declined to 5.3403 kroner from 5.3474. It may fall to $1.46 a euro today, Muta said.

Central Banks

Interest-rate futures traded on the Chicago Board of Trade show a 62 percent chance of a quarter-percentage point Fed rate cut on Dec. 11, compared with 6 percent a month ago. Citigroup Inc. may write down an additional $2.7 billion worth of subprime-related assets, CreditSights Inc. said yesterday.

Australian central bank Governor Glenn Stevens, announcing today's quarter-point rate increase, said inflation will exceed his target. Norwegian forward-rate agreements, a kind of interest-rate futures contract, gained yesterday on speculation the central bank will lift borrowing costs at least once more by the end of 2008. The Norges Bank next meets Dec. 12.

New Zealand's dollar rose to 78.35 U.S. cents from 78 U.S. cents on speculation a report tomorrow will show the unemployment rate remained at a record low, boosting the chance of another increase to the country's record 8.25 percent benchmark interest rate.

Subprime Loans

``The dollar is weak against a host of currencies, including the euro, the pound and the Australian dollar,'' said Mitsuru Sahara, senior currency sales manager at Bank of Tokyo- Mitsubishi UFJ Ltd., a unit of Japan's biggest publicly traded lender. ``We can't tell how much money banks will loose on subprime loans. The Fed is likely to cut rates again before the end of the year.''

The U.S. currency may fall to $1.46 against the euro and 114.30 yen today, Sahara said.

Gains in the euro may be limited by speculation European economic growth is peaking out, reducing the need for higher interest rates.

The European Central Bank will keep its key rate at 4 percent tomorrow, according to all 61 economists surveyed by Bloomberg News. Data yesterday showed manufacturing orders in Germany fell more than expected in September.

``There is a European industrial complex which is now suffering from the euro being at such super expensive levels,'' said Peter Pontikis, treasury strategist at Suncorp-Metway Ltd. in Melbourne. ``The data all suggest you'll get a real slowdown. I'd be against the possibility of a rate hike.''

Europe's single currency will trade at $1.43 versus the dollar by year-end, according to the median forecast of 42 analysts and brokerages surveyed by Bloomberg News.

Bloomberg.com: Worldwide

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post #56 of 132 (permalink) Old 11-07-2007, 08:41 AM
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Now the story itself is bad enough, both from the loss, loss of share value and 3 card monte of the tax system that allows this silliness to "just happen".

But the lilttle part that is somewhat buried in this is the 49&#37; share of GMAC that GM still owns AND completely missing is that GMAC wholly owns DITECH.COM our SubPrime friend from TV.

________________________________________________
General Motors Loses $39 Billion
Wednesday November 7, 9:50 am ET
By Tom Krisher, AP Auto Writer
GM Posts Whopping $39 Billion Loss for Due to a Charges Related to Unused Tax Credits

DETROIT (AP) -- General Motors Corp. posted a company record $39 billion loss in the third quarter, as a charge involving unused tax credits brought an abrupt end to a string of three profitable quarters for the nation's largest automaker.

The loss reported Wednesday was one of the biggest quarterly corporate deficits ever, and it sent GM's shares down about 2 percent in morning trading.

GM attributed the third-quarter loss to a $38.6 billion noncash charge largely related to establishing a valuation allowance against accumulated deferred tax credits in the U.S., Canada and Germany, as well as mortgage losses at GM's former financial arm, GMAC Financial Services.

But accounting rules require that companies expecting to keep losing money cannot keep carrying deferred tax credits indefinitely and must write down their value.

GM Chairman and Chief Executive Rick Wagoner said he knew the charge would be difficult to comprehend for some.

"I think you'd have to have a Ph.D. in accounting to understand it," Wagoner said during an interview on "The Paul W. Smith Show" on WJR-AM.

"It doesn't have any impact at all," he said. "I would encourage people not to overreact in a negative way to it."

What might be considered more troubling for GM, though, is continuing losses in its home market, North America, where it reported a net loss from continuing operations of $247 million without the charge for the latest quarter. That compares with a net loss of $667 million in the year-ago period.

The company's overall net loss amounted to $68.85 per share, compared with a net loss of $147 million, or 26 cents per share, in the third quarter of last year.

It also included a favorable $3.5 billion after-tax gain on the $5.4 billion sale of Allison Transmission in August.

Without special items, the company reported a $1.6 billion loss, or $2.80 per share.

The company reported record third-quarter automotive revenue of $43.1 billion and record global sales for the quarter of 2.39 million cars and trucks.

"We continue to implement the key elements of our North America turnaround strategy, and these initiatives are driving steady improvement in our financial results, despite challenging North America market conditions," Wagoner said in a statement.

The huge charge, announced after the stock market closed on Tuesday, surprised Wall Street analysts who had expected a relatively small loss excluding special items. Seventeen analysts polled by Thomson Financial expected the company to lose 25 cents per share without the charge.

Chief Financial Officer Fritz Henderson said accounting rules required the company to take the noncash charge because its cumulative three-year quarterly earnings worsened.

When the company becomes profitable, the tax benefits could still be used, Henderson said.

"Economically I would say the tax benefits are there. We can use them when we turn profitable. So nothing has changed in terms of the economics of the business," he said Wednesday.

GM reported a loss of $757 million from its 49 percent stake in GMAC Financial Services, due largely to losses at ResCap, GMAC's mortgage arm.

GMAC formerly was controlled by GM. Cerberus Capital Management LP and other private-equity firms bought a 51 percent stake in GMAC in November 2006, before weakness in the mortgage industry became widely known.

GMAC on Thursday posted a $1.6 billion loss for the third quarter. It included a $2.3 billion loss at ResCap, which offset profits elsewhere.

"Obviously ResCap turned into a pretty substantial loss position, and it affected us directly," Henderson said.

He said GM's automotive business ran at about a break-even level, posting adjusted net income of $122 million for the quarter due largely to profits at its Asia Pacific and Latin America and Middle East regions.

He would not predict when GM would return to profitability.

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post #57 of 132 (permalink) Old 11-07-2007, 09:14 AM
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Mr. economic gloom & doom strikes again--and again, and again. Ol' bear seems to derive almost as much pleasure out of reporting "bad" U.S. economic news as elau gets out of parading dead U.S. soldiers in front of us, on a daily basis. I have to admit that, even as a behavioral psychologist, I am at a loss to explain the perverse motivational mechanisms that must be involved. What reinforcement paradigm/s could possibly explain such behavior? It is beyond me...

Don't believe everything you think

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post #58 of 132 (permalink) Old 11-07-2007, 09:20 AM
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Mr. economic gloom & doom strikes again--and again, and again. Ol' bear seems to get almost as much joy out of reporting "bad" U.S. economic news as elau gets out of parading dead U.S. soldiers in front of us, on a daily basis. I have to admit that, even as a behavioral psychologist, I am at a loss to understand the perverse motivational mechanisms that must be involved. What reinforcement paradigm/s could possibly explain such behavior? It is beyond me.
Jay, I am afraid that Bear is ahead of you on this one....the sky is falling and it is raining cats and dogs.......er...strike that...make that cows.

Danger: Beware of Falling Cows

MANSON, Wash. (AP) - Charles and Linda Everson were driving back to their hotel when their minivan was struck by a falling object—a 600-pound cow.
The Eversons were unhurt but the cow, which had fallen off a cliff, had to be euthanized.

The year-old cow fell about 200 feet from the cliff and landed on the hood of the couple's minivan, causing heavy damage.

A Chelan County fire chief, Arnold Baker, said the couple missed being killed by a matter of inches in the accident Sunday on a highway near Manson.

The Eversons, visiting the area from their home in Westland, Mich., to celebrate their first wedding anniversary, were checked at Lake Chelan Community Hospital as a precaution.

Everson, 49, said he didn't see the cow falling and didn't know what happened until afterward.

He said he kept repeating: "I don't believe this. I don't believe this."

Danger: Beware of Falling Cows

Video Link of the car:
Breitbart.tv » Falling 600-Pound Cow Makes Unexpected Landing Atop Moving Minivan
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post #59 of 132 (permalink) Old 11-07-2007, 09:30 AM
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While if it really is raining cats, dogs, and cows my friend, my only advice to you is "don't step in a poodle."

Don't believe everything you think
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post #60 of 132 (permalink) Old 11-07-2007, 09:30 AM
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It is called a recession. We have all seen it before and usually it is due to over speculation in some field. A correction is needed and will occur. Just pay attention and plan for it as best you can.
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