Here comes 2008 all over again....

[WiseOne]

Link to a full episode of the Daily Show, for your viewing pleasure on a weekend morning:

http://thedailyshow.cc.com/full-episode ... 5s&index=3

The summary of the Iowa presidential candidate gathering is funny, but check out the interview with the used car salesman who apparently is now in charge of HUD with no adult supervision.

As Jon Stewart's reaction makes clear, the picture painted gets scarier and scarier:

- Reduction in PMI rates
- FHA is capitalized at only 0.04%, meaning if they were a bank they'd be breaking the administration's own rules
- Derivatives are still alive and well

Oh boy I can't wait.  Sounds like all it will take for a repeat of 2008 is for the economy to soften a bit so that mortgage defaults start increasing.  Oh right, didn't that just happen??

[dualstow]

Good time to own treasuries?

[madbean]

2008 the Movie, with an all-star cast is also in the works.....

http://www.comingsoon.net/movie/the-big-short

I read the book by Michael Lewis. Should make a great comedy.

[MachineGhost]

- FHA is capitalized at only 0.04%, meaning if they were a bank they'd be breaking the administration's own rules

It was .41%.

From 2003-2008 what happened was private banks created mortgages and then dumped them on Freddie and Fannie without any skin in the game.  I think FHA had more restrictive rules for mortgage guarantees than Freddie or Fannie ever did.

[Reub]

If we're going to do 2008 over again then let's do it right this time with an all out depression.

[MachineGhost]

If we're going to do 2008 over again then let's do it right this time with an all out depression.

Seems like its coming this October anyway!

[WiseOne]

October??  That's awfully specific...can you elaborate?

[MachineGhost]

October??  That's awfully specific...can you elaborate?

http://armstrongeconomics.com/the-business-cycle/

Its the economic confidence cycle.  Best I can figure out, I think it will go like this: Europe continues to Implode -> Capital flees into US & German Bonds -> Mother of All Bond Bubble Implodes (Germany first!) -> Loss of Confidence in Government Worldwide >- Global Depression -> Confidence recovers -> Inflation -> Gold Bubble.  All by 2020.05, but starting after 2015.75.

The only variable is the 2016 election.  That's our last chance to reform government & debt-based borrowing once and for all without a resulting depression.  Are we aware enough now to pull it off?  As much as I dislike the Koch brothers, they are at least generally pushing the right kind of economic message.

Also, we'll get to see how real Monetary Realism really is throughout all this.  Perhaps the ability to never become insolvent puts on a floor with currency issuers such as the U.S..  But, do the boobuses understand this?  Not holding my breath.