Headline Only: Greedy Bankers, Lousy Government Led To Housing Mess.
Socialism: Explain to me again why bailing out Fannie and Freddie is a good idea, or why it's the taxpayers job to bail out a private enterprise, or why the mortgage business is so bad that the government has to nationalize it in the first place.
Christ-ler: Chrysler's finance arm fell $6 billion short on a $30 billion roll-over and had to pay 1 to 2% above LIBOR (as opposed to less than 0.5% a year ago). Can't sell cars and now won't be able to finance the few they do sell.
The Spiral: As resource shortages drive prices ever higher for food and energy, there will be less money left over for repaying mortgages, loans. This will not be a temporary circumstance, but the new reality. Not 'growth, ever more growth', but stagnation, contraction and collapse. In a contracting world, there is no growing surplus from which to pay interest, repay loans, replace capital. The failure of economists and financial markets to grasp this will make the transition even more difficult.
Running On Empty: Financial experts worry that a whole generation has learned to use a house as a piggy bank, having abandoned the idea of a house a store of wealth. Events may soon force them to abandon the idea of wealth altogether.
Feeling Dumb Is Common: Of the $6.8 trillion on deposit in US banks, $2.6 trillion is uninsured by the FDIC. The banks hold about $275 billion in cash and the FDIC has about $50 billion left to bail out depositors. Worse comes to worse, the FDIC can pay you about 7 cents on the dollar.
Market Prediction: Cramer, Kudlow and company are calling the latest stock market blimp "the bottom." 'We've reached the bottom!' Well, maybe, but get your hand off my ass and out of my wallet.