Hollow US Economy Revealed By Housing Bust - Madland on CNN

[oldpappymgellianthet]

Obama has destroyed our economy, what a dick. he is coming for all your paychecks too.

[Sillberdachs]

I changed my mind im voting McCain/Palin

[Sillberdachs]

I changed my mind im voting McCain/Palin

[danpt2000]

@Sillberdachs: LOLOL!! McCain, alright, but Palin??? McCain has one foot in the grave, Palin could become president if McCain died.

[jackzaf]

Before you shit your pants?

[TaffyAlpha]

OMG, I'm going to flee to Canada before the inevitable collapse...

[doooooohh]

usa is on way down... and it will never rise again... fucking learn it

[TaffyAlpha]

China went down in the opium wars, and now it's back up...

[danpt2000]

@TaffyAlpha: Why did the Opium Wars occur? Because the Brits couldn't find anything to sell to the Chinese, except for Opium. The British Empire had massive trade deficit with China. Does that sound familiar?

[harley1932]

Consider the indivduals who took out these loans. Many did not do just a little math or they would have known they would have a hard time repaying. Also, I know several people who went CRAZY (got greedy) and bought up investments properties in 2005/2006 thinking that real estate only goes up. They are upsidedown now and it is THEIR OWN FAULT!!! It was just like if they went to Vegas and threw it all at the wheel. No tears from me!

[lucidgenius88]

how can a person support the constitution when all they get in return is poverty stavation and homelesness for doing so! fuck that! support a crash and hope for a fresh new evolved economic start where goverment cant tax you on land nor inflate home prices! lets put a ban on gov engineered homelessness.

[lucidgenius88]

american politics wont even allow american peOple the freedom to own tax free land, so that they can send citizens to the gutter through inflation and tax rise! the only free poeple are the ones who dont pay property tax! yes natives! they have all the services and no tax! WHILE WE GET ENSLAVED INTO POVERTY HOMELESSNESS AND DISGRACE! NO SUCH THING AS APPARTMENT BUILDINGS ON NATIVE RESERVES! THATS TRUE FREEDOM! NOT THAT FAKE SHIT DEMOCRACY THEY FILL YOUR ASS WITH on tv

[lucidgenius88]

POLITICIANS are the crib of the economic engine and are responsible for all rises in inflation all reforms and vetos and revolts and societal poverty! presidents are the ones responsible negating property rights through legalised extortion such as rising taxes rising home costs (when wallstreet can) all forms of cost inflation and rising costs is politicaly engineered! dont be swayed by lies

and bullshit on CNN trying to render innocent politics from the societal collapsing effects it creates

[Silberdachs]

FACE THE FACTS: From a personal investment point of view, now is the time for you to make some fundamental changes. Sell your stocks, dump the $US dollar, pay off as much of your debt liabilities as is humanly possible and then buy into gold and other precious metals with what remains of your liquidity. The longer you delay, the more you'll have to pay. Don't wait until tomorrow -- do it today!

[ChicagoDannyD]

I sincerely hope voters in November understand that if they vote for McCain, they'll be getting many many many more years of war at more than 1/2 billion dollars a day, further driving the American economy into collapse.

[arnbkr]

Warren Buffett says people should be greedy when others are fearful, and fearful when others are greedy. Now is the BEST time to be buying stockers, $, etc. Buffett's doing it, but your probably so paranoid that you end up making it worse for yourself.

[Silberdachs]

arnbkr: Buffet buying US$s??? WTF! May 07,2008: 'Mr. Buffett continues his bearish stance on $US & continues to hold the Brazilian real. He said he was "happy to invest in overseas companies, because currencies in those countries are not likely to decrease to the same extent as the US$. The federal government appears likely to follow policies that will make the dollar even weaker." Buffett stated he does not feel a need to hedge on other currencies.' (Berkshire Hathaway's AGM transcript)

[arnbkr]

He's buying plenty of US equities right now. My point wasn't that he is buying dollars, but I think we've seen the $ stabalize, since the Fed has basically announced it is finished cutting rates. Once rates start going up in the last part of this year, the $ will begin to rise. GDP is not nearly as bad as thought, recession looks unlikely, employment #'s aren't as sour as thought, US equities are underpriced, so we could see a lot of capital flow into it, from the outside.

[Silberdachs]

arnbkr: Well, lets see what the dollar and stocks look like on Dec 31,'08. In my opinion, the fundamentals are lousy for both.

[arnbkr]

Where are you investing these days? I've read some reports that the housing problems we've seen here are occuring in some markets in Europe, although I don't know if they are related, or if the reports are overstated.

[Silberdachs]

Ambkr: (1) I've moved a lot of my investments to Singapore where the economy is sound & fundamentals are very strong, particularly in property where demand is high & supply is limited due to the island's size. Short term I've been bullish in oil, which has risen 35% since I first posted here. Medium term I've been into the euro, which has seen gains of around 20% against the US$ since Xmas '07 but has probably topped out now.

[Silberdachs]

Ambkr: (2) Inflation is a growing problem in the Eurozone which will limit the euro's upside. Long term I'm in platinum & gold. Property in the UK is off its peak, down 7% last month, but this is due to the credit crunch making mortgages harder to come by for first-time buyers and re-mortgagers. Negative fundamentals (i.e. sub-prime lending) isn't nearly as dire a problem in the UK as it is in the US, & demand for housing still outstrips supply.

[Silberdachs]

Arnbkr: (3) I hope you caught the upside from the $10 p.barrel oil rise today? I'm expecting it to touch $150 mid-July. World oil demand growth is still accounted mostly by China, the Middle East and Latin America - and through the summer, there is no reason to expect a material slowdown in demand growth in these areas. Israel is raising Middle-East tension with hawkish speeches about destroying Iranian (future) nuclear facilities, so more upward price pressure as a result.

[arnbkr]

I don't really see the reason for oil to be at 150. I see plenty of reason for it to be at 80-100 though. Demand in Asia hasn't increased enough in the past 6 months for there to be the huge price appreciation we have seen. Once more Asian govt stop subsidizing oil, we'll see the demand slacken. Also, in the US we have seen 4% decreases in gasoline use since the beginning of the year - the US uses 25 barrels of oil per person per year. China uses 2, our demand still makes a big impact on prices.

[Silberdachs]

Arnbkr:(4)Stocks took the hammering I was expecting. Contrary to your assumption (no offence, I hope you switch your investments in time to avoid the worst of what's coming stateside later this year), May's employment #s were shocking (-49k), worst for 20 years. This pushed US unemployment up 0.5% to 5.5%. The Fed say they'll hold interest rate cuts, but they continue to print US$s like there's no 2moro. This is ramping up inflation. Added to the oil rise, the only way for the US$ to go is down.

[arnbkr]

Actually the jobs numbers were better than forecasts, and nowhere near the 100k/month losses in 2001. The reason for the big jump to 5.5% isn't that a lot of people lost their jobs, its that a lof of people decided to re-join the workforce. So, people are concerned about inflation and deciding to get a job if they don't to pay bills. Inflation is a big concern for me, but the stock market is udervalued, I think. I think yesterday was a correction and we are close to capitulation. Good luck!

[moniequa]

Wow, oh boy some people are so positive that its all delusional. Everything is fine, the dollar is strengthened. Please short gold and oil.

[arnbkr]

The end of the world only happens once. This is nowhere near as bad as the recession of 2001-2001, or 1990-1991, or the 1970's. Griping is the sexy thing to do right now, because you can't lose personally. The smart money has been flowing back in while everybody else is selling. I'm not a day trader - I'm an investor for the long-term. This is a tiny correction compared to the long-term and really no big deal. Have you ever seen the crash of 1987 on a chart these days? You can't even tell.

[moniequa]

Its not the end of the world and it is the sexy thing to complaint. But I can't help noticing my dollars purchasing power is eroding away. I did not notice any 2001 or 1991 recession because I was too young, but I notice, today, that it takes 300% more of my dollars to buy gas, 25% more for food, 100% more for home, and 37% more for electricity. Its a tiny correction just like real estate market right now.

[moniequa]

The dollar's fate is already sealed. We will a 50% inflation and gas will $8 a gallon and food crisis will continue to effect more people.

[Silberdachs]

FACTS (4): Low US interest rates, weakening US stock market, faltering economy are causing foreign $US holders to move into other currencies. The Fed have only one tool left to fight global deflation: their printing presses. These presses are running flat out. Trillions of $US in new liquidity are being produced to stop a global debt implosion and depression. This inflationary strategy will further devalue the $US & exacerbate the economic crisis that will badly impact on the US in 2008-2009.

[Silberdachs]

FACTS (3): To keep US consumers borrowing and spending, the Federal Reserve has created two huge inflationary bubbles over the last 10-12 years: stocks and real estate. Both bubbles are now vulnerable to a massive collapse. Foreign US$ holders are very nervous. The US trade deficit is $850 trillion and rising, the US budget deficit is $700 trillion.

[Silberdachs]

FACTS (2): Business costs are being squeezed by rising fuel, labor, shipping overheads while profits fall due to global price competition and the internet. Global shopping via the internet suppresses prices. Only US over-consumption has kept the global economy afloat in recent years. But US consumers are now maxed out with debt and are suffering declining incomes.

[Silberdachs]

FACTS (1): Cheap overproduction -- the world is massively overproducing everything at viciously competitive prices. China, India and Asia have become forces for cheap over-production. Over 2 billion low-wage workers have entered the Global workforce, working for 75%-95% less than US workers. US manufacturers have moved overseas to compete. The US middle class is being eliminated as systematically they are being forced into low-paid jobs.

[jackzaf]

Hollow? What do you mean, hollow? There are Bush, McCain and Bernanke inside!

[00643981]

Bankers have conned us all. We built this country, only to find out that we can't afford to buy what we have created with our own hands because we are forced to use a corrupt money system of their design. WHAT A SCAM. To understand how this system is designed to steal from the working man, see Google Video: Money as Debt - Fiat Empire - Monopoly Men - The Money Masters - Freedom to Fascism - Zeitgeist.

[00643981]

The economy? Lou, this whole problem is caused by BANKS. How can Americans, who have built these homes, not afford to live in the homes we have built? It's a clever SCAM the bankers use against the people to confiscate their wealth. Bankers are conning us out of the fruits of our own labor. Google Video: Money as Debt - Fiat Empire - Freedom to Fascism - Monopoly Men - The Money Masters - Zeitgeist

[texanhoustonguy]

WRONG! Plenty of folks bought homes they simply couldn't afford and want a bailout. Instant gratification wins out instead of SAVING and BUDGETING and PLANNING. People today often lack the financial and emotional discipline of their parents and grandparents. It's especially shameful given the wealth of information in both English and Spanish available at a local public library computers with internet access and legitimate financial sites to guide consumers. Banks simply enabled bad debt.

[aybesee123]

Better yet, those with 5 figure incomes will be able to afford a home.

[enantiomer2000]

Can't wait for the chaos. After which I will finally be able to afford a house with my 6-digit income...

[JUKIO01]

you still get a home with a 6 digit salary? lol sad

[enantiomer2000]

people should have to make at least 7 digits to afford a home.

[bdc03]

lmfao

[alanhowitzer]

Some of the most insane things I've heard from politicians since 2000 have come from the FED:

- Take out an ARM!

- The Gov. should print money to stimulate the economy.

- A declining dollar isn't a problem because it doesn't affect Americans because most of what we buy comes from America.

- What housing bubble?

Lou Dobbs is an order of manitude off. Our government is completely insane.

[alanhowitzer]

15,000,000! Bwahahahaha!

[jvent68]

LETS HAVE 4 MORE YEARS OF BUSH--YEAH!

[qtrinh]

I couldn't agree more with you. I save my money , didn't buy overpriced crap (read: tech stock, housing, etc.), and now I can buy all these things at pennies on the dollar. The economy is good for me. All of this without feeling entitlement.

To that idiotic MD delegate, when you sell the house at foreclosure, that price is not a depressed price, that is the fair market value. Remember, buyer determines the price. I look forward to a RECESSION! Drop baby DROP!!!

[markymarkuss777]

Severe Recession 2008, Mother of all Depressions 2009! Get ready people. It's gonna be brutal!

[damania]

The camera director might be playing around

[jackzaf]

WE ARE IN A DEEP DOODOO

[ogjimkenobi]

haha, looks like Lou was having a bit of trouble figuring out which camera to talk into there towards the end.