tag:blogger.com,1999:blog-20417751.post6746207432354428462..comments2024-01-22T18:22:29.391-08:00Comments on hedera's corner: Dead Bankshederahttp://www.blogger.com/profile/01696592301686568456noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-20417751.post-34701500477649865542009-03-05T15:26:00.000-08:002009-03-05T15:26:00.000-08:00Karen, nice writing!btw, the NPR program Fresh Air...Karen, nice writing!<BR/><BR/>btw, the NPR program Fresh Air (Terry Gross) has a recent interview you may find interesting also, in which someone that should know suggests delaying fixing the banks might cost around 20% of GDP!<BR/><BR/>HalHal Horvathhttps://www.blogger.com/profile/10851897967853698214noreply@blogger.comtag:blogger.com,1999:blog-20417751.post-59922520026505119432009-03-04T19:21:00.000-08:002009-03-04T19:21:00.000-08:00Throughout the 1980's and 1990's, America was blee...Throughout the 1980's and 1990's, America was bleeding jobs and capital to overseas venues. <BR/><BR/>Meanwhile, the "assets" of ordinary Americans was being buoyed by false valuations of the real estate market, as well as growing debt (credit cards, etc.). <BR/><BR/>Despite our population growth, the real income of American families, and the American economy in general, was steadily shrinking. This was masked, or camouflaged, by our indebtedness. In other words, despite a fake "prosperity" during the two Clinton Administrations, and the first Bush II term, our actual net worth was rapidly shrinking. This was evident in our balance of payments, and growing National Debt, as well as the decline in household real income. <BR/><BR/>The mortgage crisis was the result of everyone pretending that people actually could "own" properties that were probably twice, or three times, what they could actually afford. The mortage-backed securities were, therefore, obviously overvalued (for the same reason). <BR/><BR/>The American banking system, operating on these fraudulent premises, obviously got in over its head. <BR/><BR/>Is it "too big" to fail? Well, what are the "real" consequences of major banking and insurance failures? Probably a depression on the order of the 1930's. <BR/><BR/>I'm not optimistic. <BR/><BR/>I expect that people with cash in the bank are going to do a lot better than people with "empty" assets, like houses, and stock and bonds. Gold may to up to $2000 an ounce. <BR/><BR/>Likely: 25% unemployment. The trucking and railroad and commercial airlines all disappear. American banks fail. We go back to bread lines and jingling charity bells. <BR/><BR/>You heard it first here.Curtis Favillehttps://www.blogger.com/profile/06213075853354387634noreply@blogger.com