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Showing posts with the label bank failures

Upcoming bank crisis is going to be far greater than what happened in the 1980's

Mish's Global Economic Trend Analysis : "upcoming bank crisis is going to be far greater than what happened in the 1980's... So what you say? Well I think as we watch bank after bank (Royal Bank of Scotland(RBS) this morning as an example) take recurring “one-time” write-offs we can begin to see just what a ponzi scheme this has been over the years. Banks book loans, mark them up in value, and show the difference in profits. They've done the same thing with the phantom book value these deals present when consummated. Over the last few decades banks have not really made any money; they have merely been a conduit for the Fed to create massive credit. The U.S. money supply is now over 99% debt... Looking back at the S&L crisis, I do not recall knowing anyone who was directly affected. This mortgage crisis (credit crisis really) runs far deeper. Ridiculous lending standards compounded by consumer greed and Fed micro-management of interest rates are causing millions of ...

Where is the market/economics really going?

One man's view of 2008 to 2010 by John Rubino 2/24/2008 www.dollarcollapse.com Back in June of 2006 I posted some long excerpts from an internal report produced by Colorado & Santa Fe Real Estate, a Denver firm owned by an entrepreneur named Marcel Arsenault. After riding the long bull market in U.S. real estate to a considerable personal fortune, Marcel was doing something unusual for a real estate guy: He was selling out at what now appears to be the top. But not just selling out. He was so convinced that real estate was headed for a crash that he'd converted his company to a hedge fund that was shorting REITs and industrial commodities. ... Commercial Real Estate (Retail, Office, Industrial) The thing that’s keeping commercial real estate afloat is that owners enjoyed a good economy for the last five years. Tenants are still paying rent, and until recently, expanding. But once the economy turns negative—I think we’re probably in the beginning stages of a recession—then ...