The Divine Mr. M.

..posted by theheretic in the_recession

"Holy crap.

Article.

You realize this means, according to their bank, that mortgages are worth only 10% of their prior values. So a $480K mortgage on a house means the house is only worth $48K once things settle down.

That also means that, in another point made, that there is no safe bank to put your money, because the bailout will only save 2 of the 100 big banks and mortgage companies. That means that FDIC is going to fail, the USD$ will fail for the majority of people holding the USD$ in their bank accounts and only fiat currency can be issued, backed by... nothing. With the bond markets collapsing, and likely to get worse when the run gets fully underway, this will be on the same scale as 1929. Or I'm overreacting. What are your thoughts on this?

As I see it, the only real things the USA possesses to back its currency is the ability to grow a majority of the world's food. If that fails, the USA is as bankrupt as Spain when their armada sank, and Spain is still suffering those consequences centuries later.

EDIT: And then I read this article on Death Spiral Financing and it just felt all that much worse."

The three-judge panel of the 3rd U.S. Circuit Court of Appeals ruled that the Federal Communications Commission "acted arbitrarily and capriciously" in issuing the fine for the fleeting image of nudity.