MY EXPLANATION
http://whythishappened.com
WHY THIS HAPPENED
I am not a Rocket Scientist
Well there is much to do about nothing with the way the stock market has been playing out for the past few weeks. The best thing to do is not to look at it, a friend made a reference to "follow the bouncing ball".
What we have to remember is, the people making money in the market right now are the same people that put us in this mess. The brokers, look I said it before and I have been saying it for the past two years. Our government hasn't done much for us. I had a government contract and was successful at it. When I needed help the most, the Government failed me the most.
At the time when I had money in the bank, BOA would not give me a simple line of credit. This was mostly due to the fact that no credit was being handed out unless you had property with equity. Well we all know what happened, and now we know "why this happened". BOA processes 80 percent of the loans here in Florida for SBA and the numbers are staggering, according to watchdogs only about 10 percent of those loans go to small business. Hey isn't it the Small Business Administration?
When you have people like GENERAL MOTOR ACCEPTANCE CORP. who normally only financed Vehicles getting in to home mortgage, do you really need an explanation as to why we are in this mess (THEY ARE ALMOST BANKRUPT). I said a few months ago, that recession had come and go and now we were facing a depression.
http://whythishappened.com/2008/03/19/bear-sterns.aspx
When the top major banks start to fail then depression is eminent. Where is all this money coming from, billions are now in the hands of the same people that put us in this mess. What happens when there is too much money in circulation? Well the value of the dollar decreases. If you have money in the market get it out and put them in CD's! Now that the banks are owned by the government your money is definitely safer there then the market. You won't make what you where making in the market for the past five years but all of that is gone anyways! You can not continue to ignore bad news, everyone is losing money and more job cuts are eminent.
Let's review really quick what has happened. Banks have failed creating even bigger banks that now can not fail and will always have the protection from the government, with our tax dollars. So you think you had problems before, wait now that the government owns the bank where your money is. This is the same thing that happened when they DE-REGULATED ma bell. Last time I checked she resurrected and now is the largest Telephone provider in the nation (AT&T). BIG BIG BIG, these conglomerates are at the point were no matter what they do, the government can not and will not let them fail.
THINK ABOUT IT PEOPLE AND OPEN YOUR EYES! ANOTHER GREAT DEPRESSION IS AMONG US!
CLOSB
What we have to remember is, the people making money in the market right now are the same people that put us in this mess. The brokers, look I said it before and I have been saying it for the past two years. Our government hasn't done much for us. I had a government contract and was successful at it. When I needed help the most, the Government failed me the most.
At the time when I had money in the bank, BOA would not give me a simple line of credit. This was mostly due to the fact that no credit was being handed out unless you had property with equity. Well we all know what happened, and now we know "why this happened". BOA processes 80 percent of the loans here in Florida for SBA and the numbers are staggering, according to watchdogs only about 10 percent of those loans go to small business. Hey isn't it the Small Business Administration?
When you have people like GENERAL MOTOR ACCEPTANCE CORP. who normally only financed Vehicles getting in to home mortgage, do you really need an explanation as to why we are in this mess (THEY ARE ALMOST BANKRUPT). I said a few months ago, that recession had come and go and now we were facing a depression.
http://whythishappened.com/2008/03/19/bear-sterns.aspx
When the top major banks start to fail then depression is eminent. Where is all this money coming from, billions are now in the hands of the same people that put us in this mess. What happens when there is too much money in circulation? Well the value of the dollar decreases. If you have money in the market get it out and put them in CD's! Now that the banks are owned by the government your money is definitely safer there then the market. You won't make what you where making in the market for the past five years but all of that is gone anyways! You can not continue to ignore bad news, everyone is losing money and more job cuts are eminent.
Let's review really quick what has happened. Banks have failed creating even bigger banks that now can not fail and will always have the protection from the government, with our tax dollars. So you think you had problems before, wait now that the government owns the bank where your money is. This is the same thing that happened when they DE-REGULATED ma bell. Last time I checked she resurrected and now is the largest Telephone provider in the nation (AT&T). BIG BIG BIG, these conglomerates are at the point were no matter what they do, the government can not and will not let them fail.
THINK ABOUT IT PEOPLE AND OPEN YOUR EYES! ANOTHER GREAT DEPRESSION IS AMONG US!
CLOSB
Holy bad loan Batman
How does this still manage to happen? Do we need experts to tell us that they knew exactly what they were doing? I don't think it takes more then an eighth grade education to figure out that they dumped a bad loan.
Read here
http://www.marketwatch.com/news/story/wachovias-commercial-loans-not-just/story.aspx?guid=%7BC8DA2CA1%2D8312%2D4BE1%2D9457%2D7A57A34CEF3A%7D
"The bank then sold the debt on to investors including Philip Falcone's $20 billion Harbinger Capital hedge-fund firm and the Missouri State Employees' Retirement System"
Dude, my parents retirement just went out the door. Well at least there is a bright side, they can now work for Walmart.
Walmart
Clos
Read here
http://www.marketwatch.com/news/story/wachovias-commercial-loans-not-just/story.aspx?guid=%7BC8DA2CA1%2D8312%2D4BE1%2D9457%2D7A57A34CEF3A%7D
"The bank then sold the debt on to investors including Philip Falcone's $20 billion Harbinger Capital hedge-fund firm and the Missouri State Employees' Retirement System"
Dude, my parents retirement just went out the door. Well at least there is a bright side, they can now work for Walmart.
Walmart
Clos
Stuck in a moment
Our local economy here in south Florida has been fueled mostly by greed, and corruption at all levels. If we weren't prospering in health care it was real estate.
We had a good run, close to 10 years of solid growth and expansion. Growth and expansion are an understatement. The organized crime rackets were rampant, in the past few months we have made headlines in both sectors. Apparently we take first place in both, now this is nothing to be proud of.
Recent Articles
Medicare fraud fugitives evade capture
A former scam artist tells how it works
Medicare fraud rampant in South Florida
Those are three in the past few days, it's an everyday thing. It barely makes the front page. I am in the healthcare industry, I have been in for almost 5 years. If you are a young Hispanic doing healthcare you are automatically stereotyped to being a scammer. I was even told when I first got in, that there was no way to make money the legal way. I have managed to prove people other wise, but guess what? I'm broke!
That's a whole another story for another day. While in the industry you heard of the heavy hitters the "magnets" in health care.
The following three articles are about two "Health Care Magnets".
Fallen brothers once pillars of the community
Pharmed scam began in 1980s, documents claim
Pharmed bilked Kendall hospital since 80s, documents claim
Wow, this was a great blow to the hispanic community, these guys had a lot of respect.
What happened?
Clos
We had a good run, close to 10 years of solid growth and expansion. Growth and expansion are an understatement. The organized crime rackets were rampant, in the past few months we have made headlines in both sectors. Apparently we take first place in both, now this is nothing to be proud of.
Recent Articles
Medicare fraud fugitives evade capture
A former scam artist tells how it works
Medicare fraud rampant in South Florida
Those are three in the past few days, it's an everyday thing. It barely makes the front page. I am in the healthcare industry, I have been in for almost 5 years. If you are a young Hispanic doing healthcare you are automatically stereotyped to being a scammer. I was even told when I first got in, that there was no way to make money the legal way. I have managed to prove people other wise, but guess what? I'm broke!
That's a whole another story for another day. While in the industry you heard of the heavy hitters the "magnets" in health care.
The following three articles are about two "Health Care Magnets".
Fallen brothers once pillars of the community
Pharmed scam began in 1980s, documents claim
Pharmed bilked Kendall hospital since 80s, documents claim
Wow, this was a great blow to the hispanic community, these guys had a lot of respect.
What happened?
Clos
Daddy's going to pay for your crashed car.
Ok so here is a headline a lot of people won't see but they will hear about it one way or another because it has a direct effect on all of us.
TRICKLE DOWN ECONOMICS, came out of the Reagan era. It was supposed to be good, the wealth would all trickle down to all of us. Instead we have this to deal with;
Deficit for next year to hit $482 billion amid sagging economy
Here is more that will trickle down;
Starbucks to cut 1,000 non-store jobs
Bennigan’s parent files bankruptcy, will close
Mervyns files for bankruptcy, will stay open
So I wake up this morning, there is no coffee, and the place I have lunch at is now closed. It's a good thing that I was going shopping after work with the extra money I saved from this morning and lunch. Wait aaaaaaahhhh now Mervyns is closed.
WTF!
Clos
TRICKLE DOWN ECONOMICS, came out of the Reagan era. It was supposed to be good, the wealth would all trickle down to all of us. Instead we have this to deal with;
Deficit for next year to hit $482 billion amid sagging economy
Here is more that will trickle down;
Starbucks to cut 1,000 non-store jobs
Bennigan’s parent files bankruptcy, will close
Mervyns files for bankruptcy, will stay open
So I wake up this morning, there is no coffee, and the place I have lunch at is now closed. It's a good thing that I was going shopping after work with the extra money I saved from this morning and lunch. Wait aaaaaaahhhh now Mervyns is closed.
WTF!
Clos
Is it getting better or does it feel the same?
Well, we keep hearing how the economy was supposed to get better the later half of the year. I don't know what model they used to forecast those predictions.
Let me show you the model that I use, maybe you have heard of it "COMMON SENSE". Well you know what they say about common sense right? It ain't so common, here's why;
GM, Ford Scale Back
No more easy leasing, this means less car sales, less dealers more people out of work.
"While stocks are the world's largest thermometer, the credit markets are the backbone of our system. Therein lies the true agenda of the government, to navigate prices to levels that would allow corporate America to issue secondary offerings. Do that, they hope, and the credit markets will scramble"
Read the entire article here;
http://www.marketwatch.com/news/story/we-trading-against-hank-paulson/story.aspx?guid=%7BBD5A1713%2D1CDC%2D41B8%2DB5E8%2D6053741240D9%7D
How will this intervention from your government really help us?
Mortgage applications drop; fixed rates move lower
http://www.marketwatch.com/news/story/lower-fixed-rates-fail-draw/story.aspx?guid=%7BC27A7304%2D5290%2D4610%2DB0A8%2D60B2A3EB0C9D%7D
Of course they have dropped who is trying to buy a home when the majority are losing their home. It is the time to buy but banks just aren't lending.
Now read what Jim has to say;
A Revealing Day In The Systemic Problem Known As Our Financial System
More to come.
Clos
Let me show you the model that I use, maybe you have heard of it "COMMON SENSE". Well you know what they say about common sense right? It ain't so common, here's why;
GM, Ford Scale Back
No more easy leasing, this means less car sales, less dealers more people out of work.
"While stocks are the world's largest thermometer, the credit markets are the backbone of our system. Therein lies the true agenda of the government, to navigate prices to levels that would allow corporate America to issue secondary offerings. Do that, they hope, and the credit markets will scramble"
Read the entire article here;
http://www.marketwatch.com/news/story/we-trading-against-hank-paulson/story.aspx?guid=%7BBD5A1713%2D1CDC%2D41B8%2DB5E8%2D6053741240D9%7D
How will this intervention from your government really help us?
Mortgage applications drop; fixed rates move lower
http://www.marketwatch.com/news/story/lower-fixed-rates-fail-draw/story.aspx?guid=%7BC27A7304%2D5290%2D4610%2DB0A8%2D60B2A3EB0C9D%7D
Of course they have dropped who is trying to buy a home when the majority are losing their home. It is the time to buy but banks just aren't lending.
Now read what Jim has to say;
A Revealing Day In The Systemic Problem Known As Our Financial System
More to come.
Clos
They all Fall down!
Well, I made an entry earlier today that spoke about the whole subprime debacle well there is more.
Paulson: Support for mortgage giants needed
"The administration’s support package for Fannie and Freddie could cost taxpayers as much as $25 billion, the Congressional Budget Office estimated in an analysis released Tuesday"
That's right could cost tax payers, how much more last I checked the Feds had put 150 billion in to the credit market through their overnight lending. DUM DUM put out an additional 150 billion economic stimulus package. Which I hope you know is only an advance on next years tax return (your own money)! Yet we still may have to put an additional 25 billion. It's a good thing we print our own money.
One simple thing to understand, the more money we put in to circulation the less it's worth. This is why our dollar weakens.
Freddie Mac CEO got $19.8 million in 2007
This is disturbing he got 19.8 million in 2007 and is looking at getting an additional 20 million for a job well done. Wait job well done, hold on just a second isn't the company bankrupt or suffering liquidity issues. How many people can save their homes with his 40 million in bonuses.
I SAY OFF WITH HIS HEAD!!!!!!
Clos
Paulson: Support for mortgage giants needed
"The administration’s support package for Fannie and Freddie could cost taxpayers as much as $25 billion, the Congressional Budget Office estimated in an analysis released Tuesday"
That's right could cost tax payers, how much more last I checked the Feds had put 150 billion in to the credit market through their overnight lending. DUM DUM put out an additional 150 billion economic stimulus package. Which I hope you know is only an advance on next years tax return (your own money)! Yet we still may have to put an additional 25 billion. It's a good thing we print our own money.
One simple thing to understand, the more money we put in to circulation the less it's worth. This is why our dollar weakens.
Freddie Mac CEO got $19.8 million in 2007
This is disturbing he got 19.8 million in 2007 and is looking at getting an additional 20 million for a job well done. Wait job well done, hold on just a second isn't the company bankrupt or suffering liquidity issues. How many people can save their homes with his 40 million in bonuses.
I SAY OFF WITH HIS HEAD!!!!!!
Clos
Confessions
As we try to understand this whole Subprime debacle, Richard Bitner has written a book that we should all read.
Confessions of a Subprime LenderThis is the Newsweek article about it. The basic reason why we are in this "debacle" is "GREED". The whole system has failed us in part through our own negligence and non Non-challant attitude we have had.
People have lost their ability to question anything and everything. We have become a society contempt with what we are told. We don't get involved in things that don't adversely affect us. What we haven't realized is that this current economic crisis is all our fault.
When Fannie Mae and Freddi Mac have close to 80 percent of the loans they made in foreclosure we all have a big problem. When major banks start failing this is a depression not a recession. There is more to come and while these fathead CEO's like Ken Lewis from BOA continue to lie and tell us that this over, we will never get out of this mess.
The market was up yesterday just on his little speech. The same day American Express announces that "it is seeing problems across the board" with late payments. This is extremely important because they tailor to an elite clientèle.
When the wealthy start making late payments on their credit cards we have a huge problem! This has just begun to unravel and only now are we really starting to see how this affects us all!
I have been tied up with MAJOR BS in my life, on the personal and business side. I will use this blog as my form of expression and more then anything my way of letting people know the truth about my life and the rumors on the street.
Facts are facts, and as the struggle gets harder the rumors will get worse. They say it's lonely up top, and I finally know why. Everyone you think was supposed to be there for you is no longer and then they go cut their nose to spite their face just to blame you.
Trust no one and protect your self because this will only get harder, there is a NEWORLD ORDER. This new order will consist of a fact finding mission that will unveil the true criminals in our society. The everyday people that choose not to get involved when someone is doing something wrong.
When you know its wrong and yet you do nothing about it you are just as guilty as the rest!
Wake up people open your eyes!
Clos
I'm back
I had to take a hiatus because of legal problems and personal problems. I have basically taken out the trash and I'm starting from scratch!
The last few times I made an entry it was concerning the whole Bear Sterns debacle, and how the Feds stepped in. Well, it seems like there was some funny business going on.
Read this!
Hundreds indicted in mortgage fraud probe
Well, its a good thing the Feds stepped in to handle the mess. I wonder how many scape goats are being wrangled in. I'm sure DUMB DUMB, and his crew had a hand in this. Now those that knew they would take the blame will blame someone else. Some will serve some time some will repay but for the most.
THEY GOT AWAY WITH IT!
Closb
The last few times I made an entry it was concerning the whole Bear Sterns debacle, and how the Feds stepped in. Well, it seems like there was some funny business going on.
Read this!
Hundreds indicted in mortgage fraud probe
Well, its a good thing the Feds stepped in to handle the mess. I wonder how many scape goats are being wrangled in. I'm sure DUMB DUMB, and his crew had a hand in this. Now those that knew they would take the blame will blame someone else. Some will serve some time some will repay but for the most.
THEY GOT AWAY WITH IT!
Closb
How close are we?
I haven't really had the time to sit and write anything due to several reasons. I want to start with the fact that I'm just not impressed with our current candidates for president. We are getting closer to election day and I see no real reason to vote for any one of them. This is really all I have to say on this!
U.S. stocks rally in delayed applause for Fed
http://www.marketwatch.com/news/story/us-stock-rally-fuels-dow/story.aspx?guid=%7BB4244896%2D3989%2D4397%2D9197%2DC5ECF26DE774%7D
Market has been performing well, due to some positive news from some big players in the game. Most of the news is still negative but the market is driven on pure speculation!
Home Depot cuts back on expansion plans
http://www.marketwatch.com/news/story/home-depot-cuts-expansion-plans/story.aspx?guid=%7BA802E064%2D8BFA%2D4AD5%2DB69A%2D3CB1208C50D6%7D&dist=TNMostRead
Just another example of how the real estate disaster is still not over. New home inventory is still at 9.8 months according to the "National Association of Realtors". The median price is now $195,000.00 compared to $201,000.00 the previous month. This is indicative of what is still to come, just as fast as the property values where over inflated they will continue to crash!
California is still in the lead and Florida is not to far behind with the most metro areas on the top 20 of foreclosures. California has 53,269 homes in some sort of foreclosure filing just in February. Florida is right behind them with 32,447 in foreclosure listing. We have to realize that these numbers don't reflect how long a home has been in the foreclosure process. This is something that I consider very important when analyzing market trends and current conditions. Take a look at the following clip and make your own conclusions.
Banks Lose to Deadbeat Homeowners as Loans Sold in Bonds Vanish
Let's look at how well the stock market has performed and now read Jim's new excerpt!
Just in case you didn't know, the following companies just filed for Bankruptcy
Better use those gift cards that you have stored away because they will be rendered useless in a couple of months. Well maybe they won't be entirely useless, I'm sure we can try to use them as coasters!
More news!
Manipulation … U.S.
DUM DUM and his friends at work!
MY BRAIN HURTS
Carlos
U.S. stocks rally in delayed applause for Fed
http://www.marketwatch.com/news/story/us-stock-rally-fuels-dow/story.aspx?guid=%7BB4244896%2D3989%2D4397%2D9197%2DC5ECF26DE774%7D
Market has been performing well, due to some positive news from some big players in the game. Most of the news is still negative but the market is driven on pure speculation!
Home Depot cuts back on expansion plans
http://www.marketwatch.com/news/story/home-depot-cuts-expansion-plans/story.aspx?guid=%7BA802E064%2D8BFA%2D4AD5%2DB69A%2D3CB1208C50D6%7D&dist=TNMostRead
Just another example of how the real estate disaster is still not over. New home inventory is still at 9.8 months according to the "National Association of Realtors". The median price is now $195,000.00 compared to $201,000.00 the previous month. This is indicative of what is still to come, just as fast as the property values where over inflated they will continue to crash!
California is still in the lead and Florida is not to far behind with the most metro areas on the top 20 of foreclosures. California has 53,269 homes in some sort of foreclosure filing just in February. Florida is right behind them with 32,447 in foreclosure listing. We have to realize that these numbers don't reflect how long a home has been in the foreclosure process. This is something that I consider very important when analyzing market trends and current conditions. Take a look at the following clip and make your own conclusions.
Banks Lose to Deadbeat Homeowners as Loans Sold in Bonds Vanish
Let's look at how well the stock market has performed and now read Jim's new excerpt!
Just in case you didn't know, the following companies just filed for Bankruptcy
Better use those gift cards that you have stored away because they will be rendered useless in a couple of months. Well maybe they won't be entirely useless, I'm sure we can try to use them as coasters!
More news!
Manipulation … U.S.
DUM DUM and his friends at work!
MY BRAIN HURTS
Carlos
Are they next?
This will be breif, can they be the next Bear Sterns?
Citigroup posts $5.1 billion loss
Bank takes $12 billion in writedowns
A few months ago they raised 7.5 billion from Abu Dhabi investment. After the cash infusion they said that they didn't expect any more heavy losess.
Couple months ago the analyst for Abu Dhabi told his clients that Citigroup would need an additional 20 Billion in cash or they would suffer liquidity problems.
This is not the first time that these words are heard!
More to come
Carlos
Citigroup posts $5.1 billion loss
Bank takes $12 billion in writedowns
A few months ago they raised 7.5 billion from Abu Dhabi investment. After the cash infusion they said that they didn't expect any more heavy losess.
Couple months ago the analyst for Abu Dhabi told his clients that Citigroup would need an additional 20 Billion in cash or they would suffer liquidity problems.
This is not the first time that these words are heard!
More to come
Carlos