Credit Card Rates Rising, ARM Mortgages Resetting, Credit Refinancing is Gone,..Now What?

[Blackhatjack]

Wages remain low, prices are rising quickly, jobs are being outsourced, the dollar is tanking against foreign currencies, We are spending $2 bil per week in Iraq, and Congress is about to go on recess for a month.

We are looking at huge inventories of homes for sale that cannot be sold because borrowers cannot get a loan and do not have 10-20% to put down. The home equity loans are drying up because housing prices are dropping for everyone.

Consumer debt is at an all time high.

And the stock market rose to an all time high of 14,000 just in time for top officials to sell their stock and exercise their options just before the fall.

The future is uncertain at best ... What Now??

[The Backlash Cometh]

1. Be careful what you wish for. Looks like the lobbyists got all they wanted,

and in the end, the corporations they represented are going to get it in the a$$.

[Deja Q]

2. Well, our economy will collapse and be rebuilt, which will make us competitive again.

Hey, Indians get rich by making websites for $100. Americans can't compete because of cost-of-living factors.

Maybe that's why everything is being tossed like a salad.

I sure as hell don't know, but it's as real a possibility as any other.

[peacetalksforall]

10. The corporate agenda is to make this country a third world

country via making it a second world country. They want to equalize things between China, India, the U.S., and Mex/Central America and more. That way they can maximize supplies and capabilities for labor, wages, materials, costs, factories, factory towns, and transportation to move it all around - all the while opening and keeping new markets by making people think they are happy and lucky so that they wil make and spend and pay taxes. Naturally, they will create, sustain, and profit from ongoing wars, carefully arranged so that ships and aircraft carrying their products and the earth resources they plan to own - safe. The prison season will be secure and competitors for drugs that keep certain people incapcitated will be snuffed out in favor of the corporate/military/government owned traffic.

[SpiralHawk]

3. "Just relax, Dude, and count up your oil and munitions profits." - Commander AWOL

"What are you little people sqwaking about now? War profits are way up. So just chill. All the Have Mores -- my republicon Homelander cronies -- are doing fabulously well with Massive War Profits. So the rest of you can just shut up and sit down. Smirk, smirk, smirk."

- Commander AWOL

[BOSSHOG]

4. But bush says everything is great in the economy

One question my friend. I have heard different figures relative to what we are spending in Iraq per week. You mentioned 2 billion. I accept that and thanks for the data but do you have a source for that figure? I'm compiling some figures of my own. Thanks for any assistance you may provide.

[Blackhatjack]

6. I got that figure from a hearing on CSPAN last week re: Iraq ...

I do not think there is any confirm number that you could stake your reputation on, but the $2 bil figure is not the highest I have heard.

Sorry I do not have a link.

[BOSSHOG]

8. I appreciate the feedback Jack

Hell, I doubt anyone knows the true numbers. If the "liberal" media is touting about 2 bil its most likely much higher. Thanks for the post. Republicans just go merrily on their way spending in Iraq which is all based on intentional republican lies and then they want to nitpick "millions" of dollars for silly things like child health care.

[Contrary1]

13. $4,700. per second...

That's the number I quote to idiots I know who support Bush's debacle. It's math they can relate to.

$2,842,560,000.00 per week compliments of American and British taxpayers.

http://www.news.com.au/heraldsun/story/0,21985,22178240-663,00.html

[cliss]

18. The reason for that Boss, is

because they do not divulge those figures. I tried....

I tried in the beginning to keep track of the spending. For a while, it seemed like they were spending around $4 billion / month. Then, it became $5 billion. I was getting confused. Next, to my shock I saw it was $8 billion per mo.

What the hell? I was getting furious. I think the problem is, the funding bills are basically 'Carte Blanche' meaning they are just blank checks. We don't know where the money is going.

I'll be interested to see what you find out.

[Blackhatjack]

22. I gave up trying to find a confirmed number when I realized ....

... there was an attempt to audit the Halliburton No-Bid Contract for Logistical Services, and the Inspector General forwarded a recommendation that no further funds be released to Halliburton until they accounted for millions of dollars. The Inspector General was ignored and the money was released anyway. Some members of Congress wanted to know how much money was paid over what period of time and there was no way to confirm how much Halliburton had been paid and in what increments. (But we do know that Halliburton charged for hundreds of thousands of meals they never served, delivered contaminated water for our troops to use, and treated themselves to elaborate parties on holidays with food and drink that was intended for our troops).

So I figured sooner or later there would be an accounting whether Halliburton fulfilled its obligations under the contract or not, but I was wrong.

Then someone pointed out that Congress continued to vote 'funding to the troops' but no one knew what amount of the 'funding Congress approved' had been released and for what purposes. We did learn that the 'funding' did not find its way to the manufacturer of the v-shaped humvees to protect the troops from IEDs.

One other twist --many of the CIA and covert operations have been funded 'off the books.' This fact becomes interesting when you learn that there are billions of dollars that the US Govt cannot account for --they say they don't know what happened to it, but they are sure it was dispersed properly.

So our best guess is to rely on people like John Kerry and members of the Armed Services Committee to give us a rough estimate of what is being spent. But in truth I doubt anyone knows how much we are really spending.

[Bushwick Bill]

5. Economic armageddon per Jim Cramer.

This is off the hook, even for this maniac.
http://www.youtube.com/watch?v=rOVXh4xM-Ww
http://www.cnbc.com/id/15840232?video=452808336

What the hell will a rate cut do to the dollar?

[Blackhatjack]

7. My problem with the Cramer crowd is...

... huge amounts of money have already been taken off the table BEFORE this downturn. The banks and mortgage companies became accustomed to raking in huge profits and now they stand to see an interruption of that flow of money.

Cramer is upset because it affects the people he works with and knows. I doubt any of them are worried about the consumers who will suffer the really tragic consequences of losing their homes and being thrust into a Bankruptcy position from which they will be abused again.

I think Cramer is late to the party, and he is only now screaming since it will affect his livelihood and his friends.

[Bushwick Bill]

9. I couldn't agree more.

As one of the youtube comments reads, only once it affects the hedge fund gang, Cramer gets mad. Jim, where were you when people were getting roped into mortgages they never should have obtained?

[OzarkDem]

15. Deliberately planned

it could all have been avoided, in fact we could recover if they get the hell out of Iraq and get rid of tax cuts for the wealthy.

[melody]

11. We'll rearrange and emerge stronger

Much to the ire of our enemies foreign and domestic.

[sandnsea]

17. ladeda

And what of those made homeless during the rearrangement??

[melody]

20. ?ladeda?

Oh, okay, we'll all die in a big pit of fiery hell. Feel better now?

We have only two choices -- survive or perish. I choose to survive.

[sandnsea]

The empathy is underwhelming

By a host of people on the topic of the credit collapse. But as long as you're okay...

[melody]

23. I didn't say that ... you implied you were helpless ... I said otherwise

If you want to believe you're helpless, by all means, do so.

There are ways to survive. I'd be happy to point out some frugal groups, etc, for you.

[sandnsea]

24. Where did I imply *I* was helpless???

What an arrogant assumption.

[melody]

25. What a rude response, from beginning to end

Obviously, you think you're helpless if you caustically attack someone who merely made
the point we'll survive. If you want to read all the amen corner about the end of
everything and how we're all doomed, then put me on ignore. My only point was we'll
find a way to come back and we'll be stronger for it. Doesn't make it a good thing, and
obviously don't undermine anyone's pain unless they are in love with their own helplessness.
It was arrogant of you in the first place to attack me for merely offering hope.

That said, welcome to my ignore list, you're not worth my time.

[sandnsea]

I asked about the homeless

OMG, Horrifying!!

You expressed your opinion that they were a bunch of helpless losers who, hmmm, are in love with their own helplessness.

And I'm rude. :eyes:

So typical. It happens every time there is a real world economic thread on DU. People making $150,000 want people to feel sorry for them and the real poor are denigrated and kicked to the curb.

[sandnsea]

26. dupe

[melody]

27. correcting grammar

doing it here since it's past editing time ...

That was meant to say "obviously WON'T undermine anyone's pain".

Now welcome to my ignore list (again).

[sandnsea]

21. dupe

[SoCalDem]

12. Now what?

Here's what happens. people who owe a lot will take it in the shorts.

Even though the BK rules have tightened up,k there will be HUGE numbers of bankruptcies, and housing prices will fall dramatically in some areas.

people who HAVE money will scoop up the bargains (they always land on their feet) and the rest of the people who live hand to mouth , on credit..well they will land HARD..

people who have been using their house equity like an ATM, will have to start using cash, since the equity is now vaporized.


But we never learn, and once this bubble is gone, the USA will go back to what it does best..profligate spending

[Ress1]

14. Bid money knows just how far to push.

Push too hard and they'll have trouble on their hands.

[davidwparker]

16. Most Americans do without? I know that will be tough since we're such

a materialist bunch.

[Blackhatjack]

19. I hate to say it, but I am pessimistic this time... I believe we are in for some major pain

Once the economic engine shuts down, it is very hard to bring it back on line.

Go back and read history about FDR and the New Deal.

We are headed in that direction, and guess what... this time there will not be nearly the help from the rest of the world that we need.

[Blackhatjack]

28. Who can we look to for guidance as to future events? For those not on Wall Street/CNBC?

We often see the approaching storm and do not understand how it will really affect us. The lack of realtime information at our level puts us several steps behind the wealthy who get a heads up before we do.

Who out there can we rely on to tell us the truth today? And what should we do that we CAN do today. I am not talking about things like 'pay off all your debt' --that simply is not an option for most people.

I believe many of us are 'stuck' and will be stuck even as the wave breaks over our heads.

THe only useful information is that we can share with one another to weather the storm since it is obvious that those at the top have no concern for us if we are unable to improve their bottom line.