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If the debt was to be paid for by charging each and every citizen of
the US and making them pay payments it would be about $200 each per
month for about 30 years. Natch that would be about $400 per month
for each family. Shall we do it?? Nah, pass it on to the kids:)
Prosper
--- In realtraders@xxxxxxxxxxx, jafeilbach@xxxx wrote:
> I agree Joe, no one can know it all. I am by no means any type of
expert in
> the economy, but I think there is some validity in what James
says. I just
> hope that it all falls out somewhere in the middle and doesn't
crash as hard
> as James thinks. Here is a site that is quite interesting:
>
> http://www.publicdebt.treas.gov/opd/opdpenny.htm
>
> It is the US federal govenments official site that posts the public
debt to
> the penny every day. You can search back many years if you want.
When you
> have a look, think about how many times you have heard the
word "surplus"
> used by all the politicians over the last year.
>
> John
>
>
>
>
> In a message dated 11/29/00 7:18:41 AM Central Standard Time,
> joeduffy@xxxx writes:
>
> > One of the greatest gifts you can have in the market is "knowing
what you
> > don't know". No one knows all there is to know about being a Fed
Chairman,
> > including Greenspan, because such is impossible.
> > One of the things I have observed though, is that people who
state their
> > opinions beginning with the statement "the fact is", are among
those who
> > don't know what they don't know. And as such, they most often
turn out to
> be
> > dead wrong.
> >
> >
> > ----- Original Message -----
> > From: James Taylor <jptaylor@xxxx>
> > To: <realtraders@xxxxxxxxxxx>
> > Sent: Tuesday, November 28, 2000 11:43 PM
> > Subject: Re: Re: [RT] Alan Greenspan
> >
> >
> > > Greenspan is VERY much a responsible party to the position
this country
> is
> > > in. In the early 1990s, the Fed, in an effort to reliquify a
> > > balance-sheet-troubled banking system (due to shoddy lending
practices),
> > cut
> > > interest rates drastically, engineering the steepest yield
curve in
> > decades.
> > > Banks were able to borrow short-term and pocket up to 5
percent in profit
> > > from loaning to the bond market at the higher long-term rate.
The Fed
> > also
> > > inflated the monetary supply.
> > >
> > > Here we are today with: Bankruptcies at record levels,
savings rate at
> > > record lows, corporate/personal/government debt at astonomical
levels,
> > real
> > > wages below 1970s levels, trade deficit at astonomical levels.
> > Consumers
> > > (which make up 2/3rds of the economy) are BROKE; studies show
that 25%
> of
> > > Americans have less than $1,000 to their names, another 25%
have less
> than
> > > $5,000. HALF of the US population are a few paychecks from
the street.
> > >
> > > Real estate prices are at astronomical levels (especially on
the East &
> > West
> > > Coasts), equity prices are still high (Nasdaq avg P/E over
100). In
> > Silicon
> > > Valley, prices have vaulted over 70% over the last two years.
> > >
> > > Banks leveraged to the hilt, for example: Freddie Mac and
Fannie Mae now
> > > have issued bonds totalling over $7 TRILLION, backed by
mortgage debt.
> > > Remember the S&L crisis which blew up 1.5 Trillion in
questionable real
> > > estate loans. When (NOT IF) this economy goes south, tens of
millions
> > will
> > > lose their jobs and default on these mortgages, making the
taxpayer
> likely
> > > to be given the big screw in the way of bailing out Fannie and
Freddie.
> > >
> > > Real estate prices are so out of touch with reality in
California, loans
> > are
> > > no longer based on appraisals, just the 'ability' of the
applicant to pay
> > > his/her monthly payment. The debt/income levels have been
relaxed to
> 50%,
> > > up from 26%.
> > >
> > > Bank lending standards have been deteriorating for years, this
year
> alone,
> > > we had the largest ever series of bank failures take a large
chunk out of
> > > the FDIC fund.
> > >
> > > More info on the massive debt levels and the mother of all
banking
> > crisises
> > > that is coming when FNM and FRE default on their $7 TRILLION
in bond
> debt.
> > > If you think the ripple caused by LTCM was big on the
financial markets,
> > try
> > > a multi-trillion ripple from FNM and FRE. Even legislators
are worried
> > > about this event. What's even better is, they want to push
out another
> $2
> > > TRILLION in the next year for more (even more questionable)
mortgages.
> > "We
> > > are in the American Dream Business" -- will be -- "We Helped
Bring You
> > Your
> > > Worst Nightmare".
> > > http://www.geocities.com/WallStreet/Market/8553/loanbubl.htm
> > >
> > > Government Debt Levels (even during this so-called BOOM time,
the
> > > government has paid down VERY little of the $6 TRILLION in
debt, not to
> > > mention the $10 TRILLION in unfunded Social Security
liabilities fast
> > > approaching.)
> > > The Govt. Explains the Virtues of its Massive Debt:
> > >
> >
> http://www.frbchi.org/pubs-
speech/publications/BOOKLETS/public_debt/public_d
> > > ebt.html
> > > http://home.earthlink.net/~arison/debt.html
> > >
> > > I give my clients the real deal, (let the empty suits on CNBC
candy-coat
> > and
> > > lie to the lemmings) give them access to reading materials so
they can
> > > prepare themselves when the veneer of this so called 'new'
economy wears
> > > off, as it already is, as the dot-coms fail, and hapless
(hopeless,
> > > clueless) 'investors' lose their retirement money and life
savings. If
> > you
> > > manage money for clients, do them, and yourself a favor, and
do some
> > reading
> > > on the economic history and familiarize yourself with the hard
numbers,
> > > before it is too late.
> > >
> > > James Taylor
> > > http://www.techtrading.com
> > >
> > >
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