Says the Fed will not monetize the debt.
Ha ha! Now I know why Lacker is JDA's favorite Fedhead! His sense of humor! That's a good one! And the check is in the mail and I won't...
The only other time debt/GDP was this high was after WWII, and the Dirty Fed inflated away the debt that time -- there was as much inflation as real growth as nominal GDP grew. Now we are running structural deficits of 10% of GDP and have gigantic unfunded entitlements and you're going to tell me we're going to grow and tax our way out of this with no inflation?
You really think Timmy the Tax Cheat's best buddy Zimbabwe Ben would allow a failed Treasury auction? And if the Fed doesn't create inflation, that will nuke the housing market all over again. You think the Fed is going to let another housing drop take down the banks and the entire Federal government thanks to Timmy the Tax Cheat's unlimited Fannie/Freddie bailout guarantee?
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WCV:
Unlike Junior, I rarely if ever comment on statements made by the various Fed Heads. I remember a joke popularized by Barron's in 1979: "When do you know the chairman of the Fed is lying? Answer: Every time he moves his lips". Who cares what these clowns say?
IA
"And if the Fed doesn't create inflation, that will nuke the housing market all over again. You think the Fed is going to let another housing drop take down the banks and the entire Federal government thanks to Timmy the Tax Cheat's unlimited Fannie/Freddie bailout guarantee? "
The Fed can kiss my ever loving Mississippi Ass on that one - it's over (finally).
Builders who build for less and mortgage loan defaults (strategic and non-strategic) are going to continue to tank the housing market. The masters of the universe have fucked themselves on that one – I’ll bet there are few if any of that breed that have ever knocked on a door or rang up a debtor trying to collect on an overdue loan. News flash for the Golden Boys – they all pay until they quit. Whether you hold the mortgage directly or the mortgage backed security makes no difference when they quit paying – you’re fucked - unless of course you want to start making payments for John Q. Public on his shack. With the margins that exist, it will not take but 10% 90-120 day delinquency to put all that crap seriously underwater. Recently, a builder in Wentzville MO began advertising a three bedroom, two bath, two car garage house for the princely sum of $97,900. For marketing purposes, he's got the price at $89,900 after the ObamaBucks tax credit is applied as a down payment. Others who swing a hammer for a living are catching on. We're not San Diego or San Francisco (thank God) on valuations that defy gravity but they did get bubbly by comparison here for the past decade. It's over - Greenspan or Son of Greenspan or his FOMC Golden Boy partners should just get fucking used to the idea. Happy dreams.
Jeff
all you Fed boys and assorted housing "value" cheerleaders better get ready to suck on the big one
more from my "the Fed can eat shit and die" file
oh, and I almost forgot to mention the other millstone around the neck of housing "values" - a decade of RAMPANT AND UNCHECKED FRAUD
Happy dreams of trees growing to the sky, assclown Fed Boys and housing cheerleaders.
and now let's finish our little hissy fit rant with an appropriate Roy Orbison tune
Personal bankruptcies are up 35%. Chapter 7 liquidation is outpacing Chapter 13 repayment plans. Currently the judges don't have the means to alter the amount due on a real estate contract so it makes more sense for the debtor to liquidate and walk from the house. The bankruptcy reforms passed a few years ago were an attempt to keep people paying via a Chapter 13 plan and to steer them out of Chapter 7 which is much more devastating to the lender. The grand plan ain't working out that way (hahahaha) - again, suck the big one Fed - Man plans, God laughs. I love seeing these Master of the Universe types take it up the shit chute. If John Q. Public really wants to get even, they will just stop paying en masse. For Christmas, I think I'll send a copy of "Bonfire of the Vanities" to the St. Louis Fed and they can all take turns reading in the shitter. When they're done, they can forward it over to the next Fed bank, etc. God love Tom Wolfe.
Jeff
sometimes you just bite off more than you can chew kiss my MS ass Fed
The report continued: “Even among borrowers who receive five-year modifications, some will eventually fall behind on their payments and once again face foreclosure. In the final reckoning, the goal itself seems small in comparison to the magnitude of the problem.”
- key phrase
the magnitude of the problem
Trying to bail out the Titanic with a teacup and a mop bucket...
careful what you wish for "ownership society" - you might just get it.
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