And it is going to TANK when it OPENS TO!!!!
That's why it's a SHIT ECONOMY (unless you are part of the base -- the "have and have-mores)!!!
"Mortgage Losses Echo in Europe and on Wall Street" by VIKAS BAJAJ and MARK LANDLER
Turmoil in the home loan market ricocheted from the United States to Europe and back again yesterday as stocks on Wall Street suffered their biggest one-day decline since February, reflecting growing concerns about tightening credit worldwide.
Big losses on packages of American home loan securities sold to investors turned up unexpectedly in French and Dutch banks yesterday, adding to worries at hedge funds and financial institutions around the globe. With trillions of dollars of securities outstanding, those announcements raised expectations that more problems may soon emerge in other unlikely places as well.
The spreading fears forced the European Central Bank and, later, the Federal Reserve to inject billions of dollars into the financial system to help prevent borrowing and lending in credit markets from freezing up.
[Yeah, and it has been FED MONEY PROPPING THIS THING UP FOREVER!
It's a SHIT ECONOMY!!!!]
Japan’s central bank followed suit, injecting more than $8 billion into money markets as stocks there plummeted Friday morning. Indexes fell more than 2 percent across Asia in early trading Friday, and the Morgan Stanley Capital International Asia Pacific index, a key regional index, was down 2.9 percent by midmorning in Tokyo.
In a statement that could further fuel the selloff, Countrywide Financial, the nation’s largest mortgage lender, said after the United States market closed that the debt markets were “experiencing unprecedented disruptions” that could hurt its profits and financial health. The company said it planned to hold more loans on its own books because investors were not willing to buy them. But it noted that its capacity to do so was “not unlimited.”
[Yup, the SHIT eventually COMES BACK AT YOU when it HITS the FAN!!!
Eat it, then, and SMILE like WE HAVE TO, shitters!!!!!!]
Yesterday’s sell-off started in France, after BNP Paribas, the largest publicly traded bank there, suspended investors’ ability to remove money from three funds that had invested in American mortgage securities. The bank said it had become temporarily unable to place a value on the funds, which have turned sour as increasing numbers of homeowners have defaulted on their loans.
“Trust was shaken today,” said Thomas Mayer, the chief European economist at Deutsche Bank in Frankfurt. “Credit depends on trust. If trust disappears, then credit disappears, and you have a systemic issue.”
[Sort of like when TRUST DISAPPEARS in GOVERNMENT and you realize you have a coterie of LYING, MASS-MURDERING WAR CRIMINALS!!!!]
On Wall Street, where shares have been fluctuating wildly in recent weeks... the Dow Jones industrial average fell 387.18 points, or 2.8 percent. European markets were down somewhat less, but stocks in Latin America fell as much or more than they did in New York. Treasury prices edged up as investors sought the safety of holding government debt.
[Like what? BANKRUPT GOVERNMENTS are going to repay?
HOW? RAISE TAXES on US?! Arrrrrrrrr!!!!!!!!]
For the second consecutive day, President Bush sought to soothe investors by pointing out that the American job market and the global economy were healthy. He added that deep pools of capital were available.
Bush, at a news conference:
“The fundamentals of our economy are strong. Another factor one has got to look at is the amount of liquidity in the system. And I am told there is enough liquidity in the system to enable markets to correct.”
Jane L. Caron, chief economic strategist at Dwight Asset Management, a bond firm in Burlington, Vt.:
“There is certainly a liquidity crisis in the financial system that the normal players themselves are having a little bit of difficulty working out.”
[Yup, every damn word a FUCKING LIE!!
We ain't BUYIN' the fucking CON JOB no more, shitter!
This guy TOTALLY OUT of TOUCH with THIS COUNTRY -- despite the new C(IA)NN poll!!!!]
But his remarks appeared to have only a brief and limited impact on the stock market.... The spreading fallout and the difficulty of evaluating the value of mortgage securities has made banks and brokerage firms much more wary of lending to clients like hedge funds — and yesterday even to each other.
The Federal Reserve injected $24 billion into the United States banking system to keep its benchmark overnight lending rate at 5.25 percent, after it opened this morning at 5.5 percent.
While officials at the Fed have made it clear that they do not want to simply bail out investors who made unwise investments by quickly cutting interest rates, they are under growing pressure to act.
[Yeah, 'cause that would be another move that might PISS OFF China, because when the rates go down, the value of the dollar debt they hold also GOES DOWN!!!]
Most of the loans that are starting to go bad were made by lenders that emerged in the last 10 years with the help of financing from Wall Street.... some rich individuals, pension funds and endowments that invested in hedge funds are clamoring to redeem their shares in the funds.
Many experts say the nation’s mortgage problems are likely to worsen in the coming months as hundreds of billions in adjustable-rate loans reset to higher rates in the next 12 to 18 months.
[And ASSHOLE will FIDDLE, saying "Fuck You" to the American people! Well, FUCK HIM!!!!!!!!]
The Dow average ended the day at 13,270.68, which is still up 6.5 percent for the year.
[So RICH GUYS will KEEP BAILING and PROFIT-TAKING, driving it down deeper and MAKING JOE Q. PUBLIC SUFFER!!!
YAAAAYYY! A SHIT ECONOMY! YAAAAYYY!]
