massive pre-emptive devaluation of the U.S. dollar coming?

[Charles Mackay]

http://www.huffingtonpost.com/diane-..._b_163632.html

[petertribo]

Re: massive pre-emptive devaluation of the U.S. dollar coming?

The venerable Financial Times of London described this "Big Bang". My guess is that it was part-speculation and part-trial ballooning by an embattled White House.

Won't this divide the Nation into two segments: Bangsters and Bangees? Taxpayers touch your toes.

This should probably get a makeover before rolling it outa the Spin Room.

[CanuckinTX]

Re: massive pre-emptive devaluation of the U.S. dollar coming?

• "Washington is going to bail out all homeowners in the United States. The U.S. government will guarantee all residential mortgages involving owner-occupants, including mortgages which are dramatically higher than the value of the underlying property."
  
  "In return for removing mortgage loan credit risk, Washington will require banks to stretch out principal repayments to owner-occupants so that they do not exceed, on a monthly basis, more than 38% of family or owner incomes. When values or incomes go up, presumably, adjustments will be made. This will provide a floor to property values, a form of welfare to the unemployed and another unfreezing of bank credit."

This will be a neat trick how they pull this off. So what if someone loses their only source of income, do they get to make zero payments until they get another job? What happens when someone wants to sell their house and it has this artificial 'floor' to the property price which no one else would be able to qualify to buy?

It sounds like they're going to turn some people's homes into their prison, retirement home and final resting place.

[GRG55]

Re: massive pre-emptive devaluation of the U.S. dollar coming?

• 
  "Washington is going to bail out all homeowners in the United States. The U.S. government will guarantee all residential mortgages involving owner-occupants, including mortgages which are dramatically higher than the value of the underlying property."
  
  "In return for removing mortgage loan credit risk, Washington will require banks to stretch out principal repayments to owner-occupants so that they do not exceed, on a monthly basis, more than 38% of family or owner incomes. When values or incomes go up, presumably, adjustments will be made. This will provide a floor to property values, a form of welfare to the unemployed and another unfreezing of bank credit."

This will be a neat trick how they pull this off. So what if someone loses their only source of income, do they get to make zero payments until they get another job? What happens when someone wants to sell their house and it has this artificial 'floor' to the property price which no one else would be able to qualify to buy?

It sounds like they're going to turn some people's homes into their prison, retirement home and final resting place.

This is actually one of the more sensible things I've heard proposed. Certainly a hell of a lot better than shovelling money indiscriminately into banks that won't [actually, can't] lend.

This targets two of the things that are holding back any resolution of this crisis. Confidence, and the self-feeding levered asset price collapse.

By guaranteeing mortgage debt borrowers and lenders can have more confidence to increase transactions instead of an ongoing deep freeze.

[FRED]

Re: massive pre-emptive devaluation of the U.S. dollar coming?

This is actually one of the more sensible things I've heard proposed. Certainly a hell of a lot better than shovelling money indiscriminately into banks that won't [actually, can't] lend.

This targets two of the things that are holding back any resolution of this crisis. Confidence, and the self-feeding levered asset price collapse.

By guaranteeing mortgage debt borrowers and lenders can have more confidence to increase transactions instead of an ongoing deep freeze.

It's yet another way for a government run by banks to put off debt forgiveness, and siphon off cash flow that we need to rebuild savings. But then we all knew they'd do that, didn't we? :mad:

Contest: Who will offer the Afterlife Mortgage first?

[phirang]

Re: massive pre-emptive devaluation of the U.S. dollar coming?

If the gov did this, the treasury market would absolutely collapse. Our soldiers in Iraq would hitchhike home.

[Slimprofits]

Re: massive pre-emptive devaluation of the U.S. dollar coming?

http://www.ft.com/cms/s/0/15f37800-e...0779fd2ac.html

That is the "Big Bang" article

it doesn't mention dollar devaluation. So where did Diane Francis get this part:

Now it is 2009 and what appears to be looming, according to one authoritative press report this weekend, is a massive pre-emptive devaluation of the U.S. dollar as Team Obama readies itself to announce the "Big Bang" -- a gigantic bailout of the frozen U.S. economy involving trillions of dollars.

[tsetsefly]

Re: massive pre-emptive devaluation of the U.S. dollar coming?

This is actually one of the more sensible things I've heard proposed. Certainly a hell of a lot better than shovelling money indiscriminately into banks that won't [actually, can't] lend.

This targets two of the things that are holding back any resolution of this crisis. Confidence, and the self-feeding levered asset price collapse.

By guaranteeing mortgage debt borrowers and lenders can have more confidence to increase transactions instead of an ongoing deep freeze.

what are holding back resolution is, there is no money, the wealth created by the bubble was not real... all these are just attempts to try to artificially inflate asset prices...

[ProdigyofZen]

Re: massive pre-emptive devaluation of the U.S. dollar coming?

This is exactly what they want. To control the financial system, create "bad banks" in all countries aka A worldwide financial apparatus controlled by the governments!

Control all pay in the financial sector so the politician get paid the most and actors/entertainers/sports players get paid the most in society.

They want to control everything.......

[metalman]

Re: massive pre-emptive devaluation of the U.S. dollar coming?

This is exactly what they want. To control the financial system, create "bad banks" in all countries aka A worldwide financial apparatus controlled by the governments!

Control all pay in the financial sector so the politician get paid the most and actors/entertainers/sports players get paid the most in society.

They want to control everything.......