18 December 2007

KingCast says some dirty words on the blawg: Recessionary Economy.

Note: This has nothing to do with the Franconia shooting tragedy and the NH AG Kelly Ayotte unlawfully withholding key evidentiary materials as noted in the Omnibus Motion post.
That having been said, I don't swear anymore on the blawg but I am going to say those nasty words today because that's what's up. I told you back in this post about Barack Obama railing on predatory lending -- which Mass Governor Deval Patrick presided over as Board Member of Ameriquest -- that the Fed was going to cut interest rates, which it did. Three times since fall, in fact. But that's not gonna' get it. So now the Bank of Canada and the U.S. Reserve Bank will bail out the commercial banks to the tune of what, $2T???

And oh, it's gonna' get worse. Some say a recession is good to reset the economy, and I say we're about to test that theory: Those 4 and 5 year teaser mortgage rates I helped produce for a couple hundred folks in 2003 are like the proverbial chickens coming home to roost, and everyone knows that chickens kinda smell like poop. So now the folks who can't afford the homes in which they thought they could refi and then roll over their growing equity are screwed because in point of fact there is no equity and now they're all upside down. And then the ripple effect from them that extends toward those folks who were not overextended before -- but who are screwed now because with the devalued market they too have lost equity -- is going to stale the economy even further.

Just watch.

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