[j]

What if the dollar collapses? Too late, it is in free fall.

Looks like that is the Fed’s plan to help the banks and pension plans. The collapse of pension plans will be a big story in the next few months (audits start in Jan). Many of those are government pension funds that tax payers will be bailing out. Most cities and States will have financial issues like San Diego had, and San Diego will get much worse.

The Governator has already called for a 10% budget cut next year.

[j]

Typically exports benefit when a country’s currency is weak, the current US economy is not typical. Our number one export is financials (stocks and bonds), and as the dollar goes down so does the foreign investor’s investments. Flight to quality used to mean US Treasuries, but if you are a foreign investor US Treasuries are junk. How much is the CANADIAN dollar up on the dollar over the last 6 months, Euro, Yuan, etc. That means US Treasuries have a negative yield. Every Fed cut hurts the US’s number one export. If foreign investor’s cash out, who is going pay for the US consumer’s spending binge, not the US. US savings rate in negative.

[j]

Typically exports benefit when a country’s currency is weak, the current US economy is not typical. Our number one export is financials (stocks and bonds), and as the dollar goes down so does the foreign investor’s investments. Flight to quality used to mean US Treasuries, but if you are a foreign investor US Treasuries are junk. How much is the CANADIAN dollar up on the dollar over the last 6 months, Euro, Yuan, etc. That means US Treasuries have a negative yield. Every Fed cut hurts the US’s number one export. If foreign investor’s cash out, who is going pay for the US consumer’s spending binge, not the US. US savings rate in negative.

[j]

Typically exports benefit when a country’s currency is weak, the current US economy is not typical. Our number one export is financials (stocks and bonds), and as the dollar goes down so does the foreign investor’s investments. Flight to quality used to mean US Treasuries, but if you are a foreign investor US Treasuries are junk. How much is the CANADIAN dollar up on the dollar over the last 6 months, Euro, Yuan, etc. That means US Treasuries have a negative yield. Every Fed cut hurts the US’s number one export. If foreign investor’s cash out, who is going pay for the US consumer’s spending binge, not the US. US savings rate in negative.

[j]

Typically exports benefit when a country’s currency is weak, the current US economy is not typical. Our number one export is financials (stocks and bonds), and as the dollar goes down so does the foreign investor’s investments. Flight to quality used to mean US Treasuries, but if you are a foreign investor US Treasuries are junk. How much is the CANADIAN dollar up on the dollar over the last 6 months, Euro, Yuan, etc. That means US Treasuries have a negative yield. Every Fed cut hurts the US’s number one export. If foreign investor’s cash out, who is going pay for the US consumer’s spending binge, not the US. US savings rate in negative.

[j]

Typically exports benefit when a country’s currency is weak, the current US economy is not typical. Our number one export is financials (stocks and bonds), and as the dollar goes down so does the foreign investor’s investments. Flight to quality used to mean US Treasuries, but if you are a foreign investor US Treasuries are junk. How much is the CANADIAN dollar up on the dollar over the last 6 months, Euro, Yuan, etc. That means US Treasuries have a negative yield. Every Fed cut hurts the US’s number one export. If foreign investor’s cash out, who is going pay for the US consumer’s spending binge, not the US. US savings rate in negative.

[j]

More people will loose sleep over the NOD they received in the mail this month than because their house burned down.

If you are behind on your payments and your house burns down are you more likely to just walk away?

[j]

More people will loose sleep over the NOD they received in the mail this month than because their house burned down.

If you are behind on your payments and your house burns down are you more likely to just walk away?

[j]

More people will loose sleep over the NOD they received in the mail this month than because their house burned down.

If you are behind on your payments and your house burns down are you more likely to just walk away?

[j]

People cannot fight the fire once it is started. Prevention is the only way to deal with these fires. Maybe instead of paying fire fighters to sleep we should set up 12 hour shifts like many rural areas do. Rural areas that pay far less than the $100k that 40% of San Diego fire fighters make. Instead of sleeping and watching TV, they can work inspecting properties and doing other prevention jobs that are neglected under their 24hr shifts.

Good luck fighting the fire fighters union on this.

[j]

People cannot fight the fire once it is started. Prevention is the only way to deal with these fires. Maybe instead of paying fire fighters to sleep we should set up 12 hour shifts like many rural areas do. Rural areas that pay far less than the $100k that 40% of San Diego fire fighters make. Instead of sleeping and watching TV, they can work inspecting properties and doing other prevention jobs that are neglected under their 24hr shifts.

Good luck fighting the fire fighters union on this.

[j]

People cannot fight the fire once it is started. Prevention is the only way to deal with these fires. Maybe instead of paying fire fighters to sleep we should set up 12 hour shifts like many rural areas do. Rural areas that pay far less than the $100k that 40% of San Diego fire fighters make. Instead of sleeping and watching TV, they can work inspecting properties and doing other prevention jobs that are neglected under their 24hr shifts.

Good luck fighting the fire fighters union on this.

[j]

yes, but inflation is going to start going crazy.

Look at the dollar, it is par with the Canadian Dollar for the first time in like 40 years.

Besides, what good is a Fed rate when banks need to pay 5.5% on CDs.

[j]

The Canadian Dollar is now worth more than the US dollar. WOW the Fed still does not get it. They can not lower rates and save the housing market. They are just killing the dollar.

[j]

If you are talking houses look at the wage/house value ratio. Places like Wyoming with is natural gas and Texas with its descent economy and low home prices will do fine. Places like southern California will get hammered Riverside is a construction based economy with an over supply a units and San Diego and the OC have a lot of real estate and mortgage jobs and crazy income to house value ratios.

The 90’s the decline in house values was caused by the loss of jobs. This decline in house values is going to cause a loss of jobs, which will cause spiral effect lowering prices even more. This will be the worst economic environment this country has seen since the 30’s.

[Author]

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