Beginning of the Second Great Depression

With all the theatrics of a tragic Greek play, the scenes of this particularly gruesome movie continue to play out. Faltering economies in Spain, Portugal, Italy, Ireland and Iceland play the next part in the debt debacle alongside numerous Eastern European countries.

The burgeoning credit and housing bubble in the United Kingdom threatens to burst at any minute.

France, Germany, and the Netherlands are the strongest of the EU... and yet not.

Across the pond... the United States and Canada continue to linger on the edge of the abyss.

Being 23 years old, I find it exciting to wait in line to get my throat slit while I pay for it to happen.

🍺 100th post 🍺

Well, the US is recovering, slowly. Things are on the up and up, for the most part.

I'm unsure if Canada was really ever on the edge...like the US and the rest of the world.

And, I could have sworn that the UK already had their bubble burst...and they are trying to mend.

Yes, the UK housing market already went. Dunno what that talk is all about. It's getting better now.

House prices were too high anyway. Crisis or no crisis, the housing market was going to go nuts some time.

http://online.wsj.com/article/SB20001424052748703808904575025100730017666.html

Canada at the moment is where the US was in 2006 entering 2007. House prices are sky high, especially in Vancouver. Their bank balances may look strong at the moment, but there's a smelly sack of surprises awaiting just around the corner.

Also, just because the S&P, Dow and Nasdaq are swelling doesn't mean Main street is. The "official" unemployment is 9.7% when's its really 17%

Comparatively Canada fared better than the U.S.

Originally posted by Moscow
http://online.wsj.com/article/SB20001424052748703808904575025100730017666.html

Canada at the moment is where the US was in 2006 entering 2007. House prices are sky high, especially in Vancouver. Their bank balances may look strong at the moment, but there's a smelly sack of surprises awaiting just around the corner.

Also, just because the S&P, Dow and Nasdaq are swelling doesn't mean Main street is. The "official" unemployment is 9.7% when's its really 17%

I can say, through first hand experience, that lending practices have tightened. I had the credit and income to get a 110% loan on the home I'm buying, but they simply don't do those loans anymore. In fact, they do the 97% loan, at best, and the qualifications are now more stringent. Twas quite shitty as I wanted to get some work done on my home and furnish.

I also want Obama's $8000, so I had to buy now instead of save for later.

So, anyway, if lending practices have tightened, then the housing "bubble" getting big again are not as much of a worry as they were before. If the payments are made on time, for the most part, then it really doesn't matter how high the prices get: the people being lent to just have to be able to afford the payments...which the prelim disclosures are supposed to take care of that.

How ARE Canada's lending practices doing? Did they tighten up, as well, or are they getting wild with their lending again?

Originally posted by dadudemon
I can say, through first hand experience, that lending practices have tightened. I had the credit and income to get a 110% loan on the home I'm buying, but they simply don't do those loans anymore. In fact, they do the 97% loan, at best, and the qualifications are now more stringent. Twas quite shitty as I wanted to get some work done on my home and furnish.

I also want Obama's $8000, so I had to buy now instead of save for later.

So, anyway, if lending practices have tightened, then the housing "bubble" getting big again are not as much of a worry as they were before. If the payments are made on time, for the most part, then it really doesn't matter how high the prices get: the people being lent to just have to be able to afford the payments...which the prelim disclosures are supposed to take care of that.

How ARE Canada's lending practices doing? Did they tighten up, as well, or are they getting wild with their lending again?

http://www.cbc.ca/money/story/2009/01/20/bankcanadarate.html

They cut the lending rate. Plus, I doubt that they'll see the economy expand by 3.4% for 2010. It's like a New Year's resolution to lose weight, and then the exercise equipment never gets used.

When the people get lent the money, it matters every bit how they can pay the money. Especially if their wages aren't high enough to meet the demand (like the poor and middle class in the US).

Originally posted by Moscow
http://www.cbc.ca/money/story/2009/01/20/bankcanadarate.html

They cut the lending rate. Plus, I doubt that they'll see the economy expand by 3.4% for 2010. It's like a New Year's resolution to lose weight, and then the exercise equipment never gets used.

Cool, so I was right. They are being more conservative.

Originally posted by Moscow
When the people get lent the money, it matters every bit how they can pay the money. Especially if their wages aren't high enough to meet the demand (like the poor and middle class in the US).

Originally posted by dadudemon
If the payments are made on time, for the most part, then it really doesn't matter how high the prices get: the people being lent to just have to be able to afford the payments...which the prelim disclosures are supposed to take care of that.

Meaning, they've already been screened before they even got the loan. Their wages would have to be high enough before they even got considered: that's what the prelim disclosures are for.

The world is a Vampire.

Originally posted by dadudemon

Meaning, they've already been screened before they even got the loan. Their wages would have to be high enough before they even got considered: that's what the prelim disclosures are for.

That didn't quite work in the US prior to the bubble collapse in Dec2007-mid2008. You had people getting homes well above 3:1 margin. Meaning, under normal conditions you take a loan on a house that the property's price is 3x what you make in a year. You had McD's workers buying 100K and up homes. It was a bonanza of the most absurd proportions.

Congress has passed "regulations" since then that has made too many loopholes available that not even swiss cheese compares to it. What that means essentially is that the same s**t is likely to happen again.

Originally posted by Rogue Jedi
The world is a Vampire.

And there's lots of blood to suck on unfortunately

Originally posted by Moscow
And there's lots of blood to suck on unfortunately

The back to school tax credit is pretty nice and added to my unemployment extentions, makes it helpful.

The unemployment in the Detroit area, which I am near is approx 50% according to the Mayors own reports, just makes it almost impossible to get a job even in the burbs since Detroiters are flocking there to find a job. It's so great that you can buy a really nice house for damn cheap, unfortunatally not many can buy one.

Detroit has got major problems especially now that Obama restructured the whole automobile industry with the workers' retirement and healtcare plans. Plus the fact that global offshoring has moved much of the Rust Belt manufacturing to third-world nations for cheap labor.

The population of Detroit has fallen drastically since the 1970s. When they show shots of the GM building on CNBC, they should pan out farther and the rest of the world can see that some of Detroit's neighborhoods look like bombed-out sectors of Baghdad.

It's too sad to think about.

Well considering the debt owed in the world vastly surpasses the actual money in existence, it´s no surprise that it´s all balancing on a very dodgy edge.

As for Greece it´s no surprise, and to now over tax the normal people to pay for other´s mistakes🙂 Not surprised the people are VERY upset.

When the Drachma was the currency I was often in Greece and everything was well cheap, but now with the rip off Euro everything has quadrupled in price, hard to imagine how the normal people get on, before these new taxes.

A scene in Greece 11MAR2010.

Up to 60,000 pissed-off people.

...And of course the Hot Fuzz

One shot of a conflict

Originally posted by Moscow
That didn't quite work in the US prior to the bubble collapse in Dec2007-mid2008.

Beecause they didn't really have a prelim disclosure screening sometimes. Or they did but gave it to them anyway.

You and I talking apples and oranges, here.

Originally posted by dadudemon
Beecause they didn't really have a prelim disclosure screening sometimes. Or they did but gave it to them anyway.

You and I talking apples and oranges, here.

I believe they gave it to them anyway.

(Non-sequiter moment): I just made a shake with apples and oranges in it. Was quite good 😎

Originally posted by Moscow
(Non-sequiter moment): I just made a shake with apples and oranges in it. Was quite good 😎

Originally posted by dadudemon
Does sound good. I ran out of oranges, this morning.

fruits_orangeHere you go