Comments on: Credit Bubble Hangover

By: Continúan los datos negativos en España, Japón, UK y EEUU « RSSNEWS - Geopolítica, economía y energía

Sun, 26 Apr 2009 22:04:46 +0000

[...] http://www.ritholtz.com/blog/2009/04/credit-bubble-hangover/ [...]

By: “The tape never lies” « Mr. Unexpectedly

“The tape never lies” « Mr. Unexpectedly — Sat, 25 Apr 2009 20:45:27 +0000

[...] if you’ll pardon my frangolese, is understanding just how royally the global economy is still fucked, and refusing to accept the market’s rejection of said fuckédness. Instead, said wisdom [...]

By: The long hard slog ahead to get back our retirement funds, our college savings investments .. « Stocks Go Up. Stocks Go Down.

Thu, 23 Apr 2009 23:45:55 +0000

[...] ahead to get back our retirement funds, our college savings investments .. Jump to Comments What Jake DeSantis doesn’t have to worry about: The net worth of American households – the difference between assets and liabilities — was [...]

By: Credit Bubble Hangover | The Big Picture « Credit

Credit Bubble Hangover | The Big Picture « Credit — Thu, 23 Apr 2009 22:12:56 +0000

[...] Original post: Credit Bubble Hangover | The… [...]

By: leftback

leftback — Thu, 23 Apr 2009 14:03:18 +0000

I am seeing an awful lot of complacency and denial in NYC at the moment. Few people seem to realize that the money pumping machine downtown has been turned off and this will have far reaching consequences for the city. At the same time it has been replaced by a money pumping machine in Washington DC. Very few people can see the difference between a recession and a debt deflation.

Perhaps the recent market rally and the abatement of economic apocalypse stories on TV have blinded people to the existence of zombie banks, zombie REITs and zombie companies. I am starting to see zombie families now, where one or both jobs have been lost, but life goes on as though in denial because “something will turn up soon” and “life will go back to normal”. Foreclosure and bankruptcy are inevitable for these people, who are now surviving on savings, credit cards and family largesse. The irony is that many of them would have been classified as Prime borrowers two year ago before the bubble burst. This is not subprime, it is the second wave.

By: Onlooker from Troy

Onlooker from Troy — Thu, 23 Apr 2009 13:27:55 +0000

This debt deflation dynamic is exactly what the market and the mainstream are missing (or just fooling themselves about). There is still deep denial about what we’ve done to ourselves (the collective we, of course) over the last couple of decades. There are and will be further attempts to rationalize the whole thing and pretend that we’re not finally choking on our debt and that it can’t be fixed by taking on more and pushing the real solutions off to the future.

That’s the truly disappointing thing about this market (and what it says about our collective psychology right now). We don’t want to face up to the ugly truth and hope it will somehow disappear like it always has over the last couple of decades in a cloud of easy money from the Fed. We must face the truth.