Dr. Housing Bubble 12/22/08

[Crewleader]

Nearing the First 100 Days of the TARP: Three Major Trends that will Crush the 2009 Marketplace: Bank Hoarding, Resilient States now Being Dragged Down, and Losing Focus.

As 2008 comes to a slow and painful end, we can reflect and see that if we continue on this current road the vast majority of Americans will be in a worse spot come the end of 2009 putting us at the worst economic recession since World War II. Now ask yourself, are you really doing better economically? If you had a large percentage of your net worth in the stock market, your answer is probably no. If you own a home, there is a high likelihood that your equity just shrunk. Or maybe you were trying to be defensive and had some money in commodities. You too faced pain this year. 2008 will go down in the history books as one of the worst performing markets in history.

Today I want to focus our energy on three trends that should they continue, will leave us in a global meltdown come the end of 2009 (as if things aren’t bad already). First, we will examine life after the $700 billion TARP. If you remember, the Troubled Asset Relief Program (TARP) was supposed to help us stay away from a global financial meltdown. It did very little in avoiding this. The only thing it did was provide crony capitalist a window of opportunity to strap on their golden parachutes while they jumped out of the smoldering building leaving everyone else to fend for their own lot in life. The next piece we will examine is the unemployment situation. This past week the BLS released data on individual states and what we are now seeing is once resilient states being sucked down by the weight of the global economic downturn albatross. Finally, we will try to understand the enforcement psychology that has caused the financial world to be a wild west allowing people like Bernie Madoff to swindle investors to possibly $50 billion in a modern day Ponzi scheme.

TARP - The new 4-letter Word

Showing the schizophrenic nature of our politicians, if you remember the initial version of the TARP was smacked down on September 29, 2008 in the House of Representatives. The reason for this was that (a) the bill as it is showing us in practice has done nothing to protect the financial health of average Americans and (b) is simply a get out of jail free card for bankers and Wall Street. The initial vote had it right but politicians freaking out that the markets might free fall, went ahead and passed the bill on October 3, 2008. Let us see how well the markets did after that shall we?

http://www.doctorhousingbubble.com/nearing-the-first-100-days-of-the-tarp-three-major-trends-that-will-crush-the-2009-marketplace-bank-hoarding-resilient-states-now-being-dragged-down-and-losing-focus/