The economy: how fucked are we?

[softball]

Originally Posted by RawAlex

Why do you think that Russia, Iran, Venezuela, and all their other commu-dictators are flaunting their "power" so much right now? They know the US is currently fucked solid, with an endless commitment in Iraq, an economy getting the burst bubble treatment, and a President in the White House that makes a lame duck look like an olympic athlete. Dubya is in full "deer in the headlights" mode right now, almost comical to see if the situation wasn't so fucking important.

Economy? Well, short term sucks, middle term gentle vacuum, and longer term okay. If (and when) the bailout happens, things should turn a little more liquid, and things should be okay. However, there are still huge numbers of shitty loans out there that are entirely upside down, and have little chance of recovery under the current situation. If something is worked out so that these properties don't go into foreclosure or that some sort of revaluing and write off can occur, then I think that things will turn better.

Overall, I predict a huge increase in the number of American girls willing to do porn, work as strippers, and become escorts, which should lower the payouts and make porn more profitable once again.

I wouldn't be putting quotes around power when you are referring to Putin

[RawAlex]

Originally Posted by rhetorical

I wouldn't be putting quotes around power when you are referring to Putin

Actually, a funny comment I read the other day... the Russian Navy sent a warship and a couple of support vessels to wargames type deal in the Caribbean... and one of the boats was a tug so they could haul the warship into port when it has problems, which is apparently often enough to merit sending a tug along to start with.

Like the russia of old, they have lots of bully power, but much of what is behind it is half asses and as dangerous to them as it is to anyone else.

[softball]

Originally Posted by RawAlex

Actually, a funny comment I read the other day... the Russian Navy sent a warship and a couple of support vessels to wargames type deal in the Caribbean... and one of the boats was a tug so they could haul the warship into port when it has problems, which is apparently often enough to merit sending a tug along to start with.

Like the russia of old, they have lots of bully power, but much of what is behind it is half asses and as dangerous to them as it is to anyone else.

You are so wrong. At the very least, they have nuclear weapons on submarines that are doomsday capable. So if it all goes to hell in a handbasket, one of those boomers could blow us out of our orbit. They have a very capable military now. Getting rid of of the old Soviet style navy, army and airforce, was just streamlining. Even within the old military, they were capable. But Putin is KGB and is a man with a plan.

[Toby]

Originally Posted by rhetorical

...But Putin is KGB and is a man with a plan.

Yup, a Russian doesn't take a shit without a plan.

[Hell Puppy]

You have to fix the housing market before the rest of the economy will come around. it's easy to blame Bush for all of this, but root cause really goes back to 1995.

It's called the Community Reinvestment Act. It was modified in 1995 by Clinton. Go look it up and read it. But for those with short attention spans, basically it has the fed pushing for loan approvals based more upon need and less upon sound underwriting principles.

So millions of loans were written in the coming years to people with a marginal ability to pay. Most of these were ARMs. Then the dotcom bubble bursts, 9/11 hits, jobs are lost and interest rates go up. Suddenly you have loan discounters like WaMu in a world of hurt with all of these loans not being repaid.

We all get to pay the price now.