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Honored Advisor

Re: its rude

Sammy: change your seting in the options box and then click on the thread above the posters name and it takes you to the last unread post.  


Re: its rude

Sammo - I really give a rats ass what you think about how I operate a thread I started.  Most people do not even read the gloom and doom thread that is why I set it up, look at the views, also look at those responding, most of them are the ones who feel strongly about one of the subject posted . . . and those who do follow it, understand that is why the posts are numbered . . . we are now on number 11.


If you are a first timer and click on this thread, then most of the material will be new too you and relevant, if you drop in to read the article posted, and I think any moron would know if they had read the previous articles and would click on the last post.  


Few if any of the articles posted are out dated or old, all are relevant to what is happening "right now" in this country.   As far as saying "hey look at me", I hope you are right, because what is posted here affects everyone and no one is required to read it and no one is required to respond to it, unless they have something to say about it. Nice to see you are concerned about the other posters.  Just click the do not view button, no one is breaking your arm to read the stuff I post.  


Adios Amigo. John  

Honored Advisor

Re: its rude

Sammy: you should concentrate more on the content of Faust's posts NOT the method.


As has been mentioned. kind of nice having them all together and not just posted willy nilly here and there.


BTW Faust ... carry on.


Re: its rude

as expected.


you're a newbie here, but eventually you'll figure out that most of the posters that are interested are already regular readers at zero hedge. almost everything you've posted has been raked over many times.



Re: Gloom and Doom#12

Well kinda interesting, it has now only been four years since home owners with no credit, no job, no income  aka  NINJA's had the door slammed on them and were foreclosed on when FMV of their McMansions plummeted in value. 


The investment banks saddled American taxpayers with their junk paper when they sold it to the FED.  Well . . . NINJA loans or are back . . . all you need to do to get one is to qualify for a life insurance policy.  


I wonder which one of the "vampire squids" Insurance companies will be "rubber stamping" those life insurance policies, so that these "new junk mortgages" can be sliced and diced and peddled to the Pension Plans which manage the muppets pension plans.  Pass  the popcorn and get me another Corona.   Adios Amigo. John


The NINJAs Are Back: Buy Life Insurance, Get A No Doc Mortgage Loan For Free

Tyler Durden's picture

First we got GM subprime interest-free car loans,  then we got subprime ABS securitizations, then we gotsoaring student loan defaults and delinquencies, then we got the opportunity to sell and short student loan exposure, and now, finally, the credit bubble is complete as FastFunds Financial Corporation is proud to announce that it has acquired exclusive mortgage servicing rights for an "Innovative New Mortgage Product."


Why is it soinnovative? Because it requires no credit verification, no credit history, no docs and needs no personal guarantees. In other words, it is the very worst of the worst lending practices we saw in 2006:the NINJA.


But there is a twist: "all that is required to qualify for a mortgage loan is qualifying for a life insurance policy, a down payment that usually amounts to 10% of the purchase price and verification that the borrower has the financial ability to pay the monthly payments."


In other words: buy life insurance, get a subprime, no doc mortgage for free.

Ye olde days are truly back.


From the FastFund credit bubble peak press release:


NET LIFE is a development stage enterprise that has developed and is offering an innovative new mortgage product that is not based on credit history (no doc) or personal guarantees. It is only secured by the underlying collateral and a life insurance policy on the borrower.


Therefore, all that is required to qualify for a mortgage loan is qualifying for a life insurance policy, a down payment that usually amounts to 10% of the purchase price and verification that the borrower has the financial ability to pay the monthly payments. NET LIFE believes this mortgage product will be attractive to a wide spectrum of potential borrowers including:

  • first time homebuyers;
  • borrowers who have experienced prior financial difficulties such as foreclosures, bankruptcies, late payments or credit problems; are presently employed and whose current income would qualify for a mortgage loan; but who couldn't otherwise qualify; and
  • borrowers who may wish to bypass the traditional paperwork involved in the typical underwriting process but who would otherwise qualify.

Since its formation in 2012, NET LIFE has completed development of its mortgage product and conducted testing via a limited number of successful closings. NET LIFE is now developing plans for a national launch of its product line.


"We are excited to be on the forefront of launching this exciting new product and especially being on the servicing side where we can gain substantial benefit without the risk associated with traditional mortgage underwriting," stated Barry Hollander, acting Chief Executive Officer of FastFunds.

* * * 
We, on the other hand, are just as excited to sit back and watch how this time the most speculatcular credit bubble ever created with the full complicity of every central banker in the world "will be different" and have a different outcome than the last time...



bruce MN

Re: Gloom and Doom#12

Wondering if once it's all blown up if there won't be folks here who still want to trace it back, even though being a new phenomena, to the old warts that they keep pointing at?



Senior Advisor

Re: Gloom and Doom#12

John, whatever would we do without the man from the government who is here to help? Well, to be politically correct, it could be the woman, don't want to be accused of being insensitive.


Re: Gloom and Doom#13

Jim Rogers probably belongs here in the "gloom and doom" section this week.  In this zero hedge article he "again" addresses the gutting of "prudent Americans" who tried to accumulate wealth the old fashion way.   Save your money, let it increase with compound interest, and then acquire income producing assets. Of course that mantra and practice has been chiseled off all the monuments and removed from all text books on wealth building here in fantasyland. 


The near zero rate of interest has destroyed the those savers who were once the bedrock for growth and expansion in our economy.  You remember how it went . . . the savers put their money in the bank and get a fair interest paid by the bank to them so the bank could lend the money to the businessman or farmer who could run his business, build products, or create new hires in his business.  


Of course . . . that is now fantasyland, and has gone the way of the buggy whip factory or those traders who still believe historical charts have something relevant to contribute to their bets in the Commodity markets.  


We are headed for oblivion, Junior with his sheepskin has a huge college debt, and chances are he is in default on that debt.  Mommy and Daddy took out a second mortgage on the "largest investment" they would ever make in their lifetime (according to Madison Avenue) and they are on the skids, now making a payment on the McMansion along with trying to keep the student loan payments current, so they do not lose the roof over their heads by continuing to feed that "largest investment" they ever made, which is now worth half its purchase price.


Well enough of my rant for today!  Here is what Jim Rogers has to say about "savers" going extinct!  Adios Amigos. John


Jim Rogers: We're Wiping Out The Savings Class Globally, To Terrible Consequence

Tyler Durden's picture

Submitted by Adam Taggart of Peak Prosperity,


Jim Rogers decries the growing uncertainty and recklessness of global central planners as the world enters unchartered financial markets:


For the first time in recorded history, we have nearly every central bank printing money and trying to debase their currency.This has never happened before. How it’s going to work out, I don't know. It just depends on which one goes down the most and first, and they take turns. When one says a currency is going down, the question isagainst what? because they are all trying to debase themselves. It’s a peculiar time in world history.


I own the dollar, not because I have any confidence in the dollar and not because it’s sound – it’s a terribly flawed currency – but I expect more currency turmoil, more financial turmoil.During periods like that, people, for whatever reason, flee to the U.S. dollar as a safe haven. It is not a safe haven, but it is perceived that way by some people. That’s why the dollar is going up. That’s why I own it. Will I own it in five years, ten years? I don't know. 

It makes it extremely difficult for the investor looking for acceptable risk/reward, or the saver looking to protect their purchasing power; as in Rogers' view, all options have their problems:


I own gold and silver and precious metals. I own all commodities, which is a better way to play as they debase currencies. I own more agriculture than just about anything else in real assets because of the reasons we discussed before. We were talking before about the risk-free or worry-free investment.


Even gold: the Indian politicians are talking about coming down hard on gold, and India is the largest buyer of gold in the world. If Indian politicians do something -- whether it’s foolish or not is irrelevant -- if they do something, gold could go down a lot. So I own it. I’m not selling it.But everything has problems.

To Rogers, the bigger danger that concerns him is the hollowing out of the 'saving class' resulting from this situation. Central planners' policies are punishing the prudent in favor of rescuing the irresponsible. This has happened before in world history, and the aftermath has always had grievous economic, social -- and often human -- costs:


Throughout our history – any country’s history – the people who save their money and invest for their future are the ones that you build an economy, a society, and a nation on.


In America, many people saved their money, put it aside, and didn’t buy four or five houses with no job and no money down. They did what most people would consider the right thing, and what historically has been the right thing. But now, unfortunately, those people are being wiped out, because they are getting 0% return, or virtually no return, on their savings and their investments.


 We’re wiping them out at the expense of people who went deeply into debt, people who did what most people would consider the wrong thing at the expense of people who did the right thing. This, long-term, has terrible consequences for any nation, any society, any economy.


If you go back in history, you'll see what happenedto the Germans when they wiped out their savings class in the 1920s. It didn’t lead to good things down the road for Germany. It didn’t lead to good things for Italy, which did the same thing.


There were plenty of countries where it wiped out the people who saved and invested for their future. It’susually a serious, political reaction, desperation in some cases, and looking for a savior and easy answers is usually what happens when you destroy the people who save and invest for the future.



Re: Gloom and Doom#14

Well it has been a few weeks, no real bad news, but a lot of catastrophic news as things continue to slow down.  Well . . . here is some bad news, it was published in AMERIKA a very, very conservative magazine.  So the Republi-cant's may enjoy it.  The pied pipers have about ran out of wind,and the party is ending. John


The economy is not coming back

where_the_wealth_goesWhen the economy gets ill, people claim it’s a recession and then a depression. What they can’t do is tell you why this happens. The answer is simple: the economy is re-adjusting its own value after having been oversold.

Unlike energy, value can be destroyed.


If you build your economy up and claim it has value, a clock starts. That clock runs during the time your economy has to deliver on that value. No delivery, and people figure it’s a scam.


This is not much different from how we treat new marketplace entries. If a new restaurant shows up and advertises its quality food, we wait for someone to report back about how great it was. If no one does, we avoid it.


Ten years into a burly recession, the talking heads say the boom days are not coming back. They didn’t warn us, because long-term thinking isn’t news.


The pleasant fiction is that what goes down must go back up. The complex reality is that we squandered the value we added to our economy over the past sixty years. It can’t come back because it was spent on dead-end targets.


Look at all that was given us. The postwar world gave the Allies a huge wealth boost. A Baby Boom came of age in the 1960s. Then a boom in cheap Asian labor. After that the internet boom. And what remains of these?


When you have “wealth” it must be put into a form that makes more wealth, or it dissipates. Holding on to wealth is impossible; it needs to become part of something that regenerates, or it falls out of relevance.


We could have built ourselves into the most powerful nations on earth. Instead, following what “the people” wanted, we wasted our wealth on other things. Both government entitlements and private spending on irrelevance crushed us.


Government wasted wealth on civil rights programs that didn’t work, crusades to end poverty, welfare and entitlements, and many well-intentioned programs and hiring a vast army of bureaucrats.


Private citizens wasted wealth on themselves. They bought luxuries, had vacations, partied hard, and saved nothing. Now they’re in depth up to their thyroids and have no savings to speak of. Retirement: never.


This is what happens when you sacrifice wealth. For a while, you have a lot of it. Then it goes away with a big flushing noise. After that, the economy compensates by dropping actual value minus the artificially inflated.


People don’t like to think about it that way. They like present tenses that imply a future without doubt. As in, “now we’re rich, and we never have to do anything again.” That attitude leads to poverty, as history now shows us.