It’s been a few months since this blog was posted. The fed has only been increasing the silliness.

A major investment firm has collapsed, more and more $$$ is being thrown at the problem by president, and two of the presidential candidates are talking about bringing Alan Greenspan back if they are elected.

I am not wanting to get “political” here, but I respect your point of view and was eondering what your thoughts are about the last few months?

Mark

Mark

I have learnt to buy undervalued properties and have contacted with people at real estate investor association who lended their cash ,which helped me not to even raise capital for my Cash from Real Estates ventures which went successfully ahead.

http://www.atimes.com/atimes/Global_Economy/IH24Dj02.html

Central bank impotence and market liquidity
By Henry C K Liu

—————————————
See also

http://www.washingtonpost.com/wp-dyn/content/article/2007/08/20/AR2007082001539.html

A Safety Net for the Whales

A big, unscheduled rate cut today. Throwing more money at the problem. Helping the profligate, punishing

Some day, and knowing when is the trillion dollar question, rates cuts won’t help any more. They’ll be like pushing on a string.

My guess though is that the party is going to resume – until it stops for real.

I wish everyone would read “The Way The World Works” by Jude Wanniski.

Our “great” Alan Greenspan has more to do with our current fiscal and economic turmoil than people realize. Mr. “Let’s flood the market” Greenspan’s policies have more to do with our current oil prices than any war the U.S. could ever have fought.

Deflation has been a huge concern by sober minds since 1998. The chickens are certainly coming home to roost.

Look at Zimbabwe with its 10,000% inflation this year alone or Germany in the 1920s with its wheelbarrows of ever more worthless money to pay for even a loaf of bread.

Not a fair comparison perhaps, but printing ever increasing amounts of money to get out of a mess may well come home to roost someday.

Although the problem started in the housing market, its reach has gone a lot further.

Here’s a copy of a recent letter to the UK’s Financial Times from a cosmetic surgeon.

“Sir, “Payback time” (August 9) was a great article on the US subprime fraud and inadequate credit checks. The blindness of the companies involved is baffling because by 2006 everyone in southern California knew that “financing” meant free money.

Having just moved west, I was chief of plastic surgery in a cosmetic surgery centre, most of whose working-class patients financed their operations via a company owned by doctors (I was not one of them). Women with incomes of $18,000 a year were being given $10,000 loans.

But at least the doctors’ finance company did stricter checks than the local mortgage companies and car dealerships – perhaps because you can’t repossess cosmetic surgery.

For example, I saw two women friends who wanted cosmetic surgery, but the routine computer finance credit check showed their social security cards and drivers’ licences were forged.

They objected to this being detected, saying the documents were newly bought – $45 each – from street vendors. In the past week using these documents they had financed two new cars and a home.

They were refused financing by the surgical centre but were so sure there had been a mistake that they returned the next day with two new sets of forged documents. They were not only surprised but outraged that financing was still declined.

The surgery centre, where I no longer work, could not pay its bills by January 2007. I was just surprised that the mortgage companies lasted as long as they did.

J.E. Morgan,

Los Angeles, CA 90048, US”

Although it’s quite amusing, it makes a very serious point.