4 replies to this topic

[ogm]

You think subprime blow up is enough pain ? Here is what may happen next .... - consumer spending retrenches (remember 30% of jobs were created by the real estate market over the past 4 years, those jobs are getting lost ) > - spending retrenches > service jobs starting to fall out > - commercial construction is overbuilt. Huge overcapacity. Slower spending, no need for more shopping malls and so on > - COMMERICAL PAPER BLOWS UP. - at the same time CORPORATE paper blows up as economy slows and defaults start rising. ( S&P recently said that 50% of all outstading corporate paper is rated junk.. scary isn't it) - as the economy slows less money goes into treasury... bugdet deficit skyrockets. - Consumers and corporations by this time defaulting left and right. And now the world realizes that US has to default on its debt, since there is no way it can be ever paid off. World's financial system is ruined by the mountain of defaulting debt. Welcome to hell. All right, S&P will probably bottom around where this debt fueled run for the roses has started, around 200-300. And then the new bull market will be born Just a thought over the weekend ... now lets rally

Edited by ogm, 04 August 2007 - 05:50 PM.

[arbman]

Somebody must be telling to Chairman Bernanke at the moment what they told to the former Chairman Greenspan in 1998; "Sir, it is too big to fail!".

We did not even started to talk about a potential failure in the derivatives markets, if the equities continue to sink rapidly from here...

[Rogerdodger]

Churning job market here:


July 25, 2007

Google Inc. said it will open a $600 million data center in Pryor,OK, 40 miles from Tulsa.






Associated Press - July 25, 2007 7:25 PM ET

TULSA, Okla. (AP) - First Data Corporation plans to close its Tulsa call center by the end of the year.

Last month, the Denver-based company said it would eliminate 300 of its 400 local call-center jobs at the Tulsa facility, which provides customer service for financial institutions.


Tulsa World

8/3/2007


51 senior-level and midlevel personnel are let go in Tulsa.

Dollar Thrifty executives said the layoffs will affect 25 percent of the management staff, or 75 jobs -- 24 of which are vacant -- at the company's corporate offices at 5330 E. 31st St.

[Russ]

The 1998 Long term capital mess was only around 3 billion, this time this trouble has the potential to get up to 150 billion dollars of bad debt.

[Cirrus]

The 1998 Long term capital mess was only around 3 billion, this time this trouble has the potential to get up to 150 billion dollars of bad debt.

$150 billion? IMO it is at least several times that.