Comments on: Why the Panic? http://www.nakedcapitalism.com/2007/08/why-panic.html Sun, 22 Nov 2009 18:18:44 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Paul http://www.nakedcapitalism.com/2007/08/why-panic.html#comment-345 Paul Sat, 11 Aug 2007 09:50:00 +0000 http://www.nakedcapitalism.com/2007/08/why-the-panic/#comment-345 Don't kid yourself that there aren't "Sub-prime" problems here in the UK. Mortgage Fraud is and has been endemic in the UK. Untold numbers of borrowers have been persuaded to lie about their incomes in their mortgage applications. The result of this vast pyramid selling scam - that is that the co-called "housing market has become - has been huge inflation of prices as people pile in on the pyramid scheme - i.e. the "housing market". There are well documented investigations which have revealed large-scale mortgage fraud; note especially the BBC Money Programme on "Mortgage Fraud". [http://news.bbc.co.uk/1/hi/business/3222053.stm] <br/><br/>The jury is definitely out. Chickens may come home to roost yet. The spurious and irresponsible lending multiples of recent years are poison in the mud. Watch out!!<br/><br/>The UK “housing market” has actually been The Greatest Ever Pyramid Selling Scam for far too long now. Mortgage Fraud – Lie-to-Buy has been going on for years and years, and no one has bothered to do anything about it. The coming weeks and months are going to be ugly. Don’t kid yourself that there aren’t “Sub-prime” problems here in the UK. Mortgage Fraud is and has been endemic in the UK. Untold numbers of borrowers have been persuaded to lie about their incomes in their mortgage applications. The result of this vast pyramid selling scam – that is that the co-called “housing market has become – has been huge inflation of prices as people pile in on the pyramid scheme – i.e. the “housing market”. There are well documented investigations which have revealed large-scale mortgage fraud; note especially the BBC Money Programme on “Mortgage Fraud”. [http://news.bbc.co.uk/1/hi/business/3222053.stm]

The jury is definitely out. Chickens may come home to roost yet. The spurious and irresponsible lending multiples of recent years are poison in the mud. Watch out!!

The UK “housing market” has actually been The Greatest Ever Pyramid Selling Scam for far too long now. Mortgage Fraud – Lie-to-Buy has been going on for years and years, and no one has bothered to do anything about it. The coming weeks and months are going to be ugly.

]]> By: dis http://www.nakedcapitalism.com/2007/08/why-panic.html#comment-344 dis Fri, 10 Aug 2007 18:27:00 +0000 http://www.nakedcapitalism.com/2007/08/why-the-panic/#comment-344 I found this both interesting and entertaining<br/><br/>http://delong.typepad.com/sdj/2007/08/today-is-a-grea.html I found this both interesting and entertaining

http://delong.typepad.com/sdj/2007/08/today-is-a-grea.html

]]> By: minka http://www.nakedcapitalism.com/2007/08/why-panic.html#comment-343 minka Fri, 10 Aug 2007 17:24:00 +0000 http://www.nakedcapitalism.com/2007/08/why-the-panic/#comment-343 Terrific summary, best I've seen. Terrific summary, best I’ve seen.

]]> By: dis http://www.nakedcapitalism.com/2007/08/why-panic.html#comment-342 dis Fri, 10 Aug 2007 17:17:00 +0000 http://www.nakedcapitalism.com/2007/08/why-the-panic/#comment-342 It looks to me that while credit market participants clamor for a fed cut, credit market movements are asking for a raise.<br/><br/>After all what has been going on is that the real rates move above market rates, so the central banks have to inject liquidity to bring the rate back down to or close to the target.<br/><br/>Take a look at<br/><br/>http://economistsview.typepad.com/economistsview/2007/08/a-significant-l.html<br/><br/>to see where I'm coming from.<br/><br/>It looks to me that if the Fed cuts, given the current environment, there would need to be even larger infusions of cash to hit the target right. It would be harder not easier.<br/><br/>How would a cut be good then?<br/><br/>What am I missing?<br/><br/>I understand that raising rates might be too harsh an action and they need to proceed with caution, but a cut looks senseless to me. It looks to me that while credit market participants clamor for a fed cut, credit market movements are asking for a raise.

After all what has been going on is that the real rates move above market rates, so the central banks have to inject liquidity to bring the rate back down to or close to the target.

Take a look at

http://economistsview.typepad.com/economistsview/2007/08/a-significant-l.html

to see where I’m coming from.

It looks to me that if the Fed cuts, given the current environment, there would need to be even larger infusions of cash to hit the target right. It would be harder not easier.

How would a cut be good then?

What am I missing?

I understand that raising rates might be too harsh an action and they need to proceed with caution, but a cut looks senseless to me.

]]> By: Azimut72 http://www.nakedcapitalism.com/2007/08/why-panic.html#comment-341 Azimut72 Fri, 10 Aug 2007 16:08:00 +0000 http://www.nakedcapitalism.com/2007/08/why-the-panic/#comment-341 I bet this credit crunch is only the beginning of a more bigger economic slowdown.<br/><br/>I'm on river banks.....<br/><br/>ciao<br/>Daniele, from Italy I bet this credit crunch is only the beginning of a more bigger economic slowdown.

I’m on river banks…..

ciao
Daniele, from Italy

]]> By: dis http://www.nakedcapitalism.com/2007/08/why-panic.html#comment-340 dis Fri, 10 Aug 2007 16:03:00 +0000 http://www.nakedcapitalism.com/2007/08/why-the-panic/#comment-340 The situation looks pretty hairy today also The situation looks pretty hairy today also

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