World economy talk

[uls]

^^

ya

FAIL

nobody is gonna bail them out

they don't pose any systemic risk

[tidus1203]

But they can always use job losses as an excuse

[uls]

haha

konte lang sila e

di sila million like the automakers

[tidus1203]

Well I guess you are right, they are just small fry's and don't deserve the blessings of taxpayer doleouts

I guess someone even bigger than GM, Ford, and Chrysler combine needs a bailout too. And its the world's 8th largest economy, its called California. Even banks don't want to lend to California No one wants to buy their paper too

[uls]

haha

the US govt has to bail out The Governator



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you have to be really, really big to qualify for a bail out

like Citigroup, AIG

you have to be so damn big and interconnected that your failure would drag many others down with you

[tidus1203]

Unfortunately for Arnie he might be the most powerful man in California but he does not have the power of the printing press (arguably the most powerful powers ) and only Uncle Ben has it

[tidus1203]

WASHINGTON--Recent data suggests that many borrowers who received help with mortgage modifications earlier this year tended to re-default on their payments, a top U.S. banking regulator said Monday.
"The results, I confess, were somewhat surprising, and not in a good way," John Dugan, head of the U.S. Office of the Comptroller of the Currency, said in prepared remarks for a U.S. housing forum.
"Put simply, it shows that over half of mortgage modifications seemed not to be working after six months."
Dugan said based on data collected from some of the biggest U.S. institutions, like Bank of America, Citibank and JPMorgan Chase, home foreclosure starts fell by 2.6% in the three months ended in September.
However, data which is to be issued by the OCC and the Office of the Thrift Supervision next week could throw cold water on a push by some U.S. policymakers for loan modifications as the key remedy for the ailing U.S. financial and economic crisis.
Dugan said recent data showed that after three months, nearly 36% of borrowers who received restructured mortgages in the first quarter re-defaulted.
The rate of re-default jumped to about 53% after six months and 58% after eight months, Dugan said, without providing an explanation for the trend.

http://www.foxbusiness.com/story/mar...cations-dugan/


When an item is damaged beyond use it can't be repaired. Same thing with overextended mortgagee, when you don't have the money and you bought a house beyond your means no amount of government intervention or refinancing at lower rates will solve the problem. Foreclosure is the only answer...

[uls]

but Arnie has muscles

he can beat up nerdy academic Ben

hehe



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Tidus, i read somewhere there's very strong demand for physical gold

Investors are actually demanding physical delivery of gold at the Comex...

they don't wanna get stuck with paper gold

That's a sign investors are really losing confidence in fiat currency

[uls]

http://www.foxbusiness.com/story/mar...cations-dugan/


When an item is damaged beyond use it can't be repaired. Same thing with overextended mortgagee, when you don't have the money and you bought a house beyond your means no amount of government intervention or refinancing at lower rates will solve the problem. Foreclosure is the only answer...

[/COLOR]

yep

kahit babaan pa nila ang monthly payments

pag walang pera, walang pera

walang pambayad

and also, if you bought your house at $500,000, and now its market value is $300,000...

e konte palang nahulog mo...

mawawalan ka ng gana maghulog pa...

hayaan mo nalang ma-foreclose

[tidus1203]

I know that very well uls. Cause I am also trying to get physical gold myself The supply is so hard to get by and we are paying almost 20% premium over paper prices. I am not saying invest your assets all in gold, but you definitely have to own real assets like gold which have survived thousands of years and still retain its value. The current US Dollar was born only in 1971, gold before Christ its already considered a store of value.

[uls]

the price of paper gold is deceiving

it doesnt reflect actual demand

it's like the price is being manipulated

i'm using gold price as a gauge for market sentiment

but it is not reflecting the loss of confidence in the financial system... mababa parin e...

yun pala, behind the scenes, investors are already demanding physical delivery of the actual metal

the spot price is now higher than futures price (yan ang sabi)

so that means investors want their gold NOW

they are afraid to get stuck with gold paper

that's fear, dude

that's investor sentiment right there

[shadow]

hello!!!????

:tumbleweed:

just sticking to the topic...should we still get out of the US dollars?

[tidus1203]

*shadow By reading our posts regarding gold, that should give you an idea on our opinions regarding the the topic.

*uls The paper prices is just that PAPER. There is no assurance whatsoever that there will be delivery of actual physical gold when the paper expires. Its so hard to buy physical gold, people just don't want to trade paper dollars with actual gold unless at a significant higher premium. Base on my experience around 20% premium. I wouldn't be shock if actual gold is selling for $920-$950/oz even though paper prices are only $770/oz.

[uls]

shadow,

for now not yet

there's still a lot of uncertainty out there

naka life support pa ang global financial system

so safe haven parin ang USD

follow the bond market

pag humina ang demand for US treasuries, babagsak ang USD

in the long run, babagsak talaga ang USD

it could even lose its status as world's reserve currency

the Fed's goal IS to devalue the USD

look at what the Fed is doing...

lowering rates to zero, and flooding the financial system with money

look at what the US govt is doing... spending... massive massive spending

Obama will be spending trillions

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yep Tidus

others won't sell their gold at any price

they have worst-case-scenario is their minds

extreme na yan

pero that's a sign how fearful people are

[badsekktor]

that's why banks still arent lending

who the hell are banks gonna lend to?

unemployed people?

businesses that are losing money?

the only people or businesses that qualify for loans are those who don't need loans

so true! in these times, those who could afford loans are the ones who dont need them.....

The real worry is how the hell will the US economy replace all those job losses. I know it can be done, but how long? That is the question... The government can't just create jobs for all these people definitely it has to come from the private sector... But even if you are the most optimistic person in the world you just can't phatom how in the world will all those job losses be replaced swiftly to make the economy as robust as it was prior to the implosion? Or is this a turning point that says that Americans should now live beneath their means?

maybe we filipinos should introduce to the americans, the concept of sari-sari store? and the "tingi" system instant livelihood for the jobless and buying only goods that you are going to consume, saving money by cutting cost due to wasted goods and less trips to the grocery.

they are fighting the deflation monster with everything they got

Zero rates, quantitative ease, kitchen sink

maybe they need to include the bath tub!

[uls]

^^

and the toilet bowl

hehe

[uls]

Sony to Cut 8,000 Jobs, Shut Plants, Reduce Spending
http://www.bloomberg.com/apps/news?p...rjU&refer=home

Dec. 9 (Bloomberg) -- Sony Corp. plans to eliminate 8,000 jobs in the largest reduction announced by a Japanese company since the credit crunch drove the world into a recession.

Sony will curb investments, outsource production and move away from unprofitable businesses as part of plans to save more than 100 billion yen ($1.1 billion) by the year ending March 2010, the Tokyo-based company said today. The job cuts represent about 5 percent of the electronics division’s workforce, it said.

The reductions underscore the severity of the slump in consumer spending at a time when companies typically prepare for the peak Christmas shopping season. Sony, the world’s second- largest maker of consumer electronics, and larger rival Panasonic Corp. slashed their profit forecasts for this year because of the global recession.

please help Sony

please buy more PSP and PS3

[tidus1203]

I already own both Sadly though I am not generous to buy another one Hay after all this discussion we have, rewind back mid 2007 Bernanke under oath saying it was all contained to the sub-prime sector of the housing market and will not spill over.... Buti meron ng YouTube.

[badsekktor]

sana bumaba na ang price ng sony lcd tv!

[uls]

it's isolated to subprime they say

it's not going to spread they say



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sana bumaba na ang price ng sony lcd tv!

just be patient

bababa ang presyo ng mga non essentials