Ron Paul Knew This was Coming, Cramer Explains Why

[michaelwise]

Please don't move this thread, it is relevant to Ron Paul's Monetary Policy.

World stock markets are plunging some more on this MLK day as US markets are closed. Major averages are all down about 5%. I wouldn't want to be anywhere near the stock market when it opens tomorrow. It could be Black Tuesday unless The Plunge Protection Team( The Presidents Working Group) can manipulate the day. Somehow I don't think they have enough money to fix it.

See Jim Cramer's explanation.

http://www.cnbc.com/id/15840232?video=625518469

 

[Greg in VA]

Everyone needs to get a rapid financial education, I would strongly recommend this blog

http://globaleconomicanalysis.blogspot.com/

interestingly enough there is a recent post about a panic in the UK regarding a property fund. Here in the US we have something similar were CDO (collaterallized debt obligation) have been tanking, this in part is what started the credit crunch this past summer and is due to the failure of realestate backed bonds, bundeled as CDOs, I believe this is what caused two Bear Sterns Hedge funds to implode.

http://en.wikipedia.org/wiki/Collateralized_debt_obligation

another personal favorite finacial blog is

http://wallstreetexaminer.com/

I like Russ Winter in particular who has been writing about this crisis for some time.

Mish by the way (blog mentioned at the top) I believe is an RP supporter, or has been in the past.

Noriel Roubini is also another good blog, but I believe you pretty much have to subsribe now, which I don't.

 

[tsetsefly]

cramer is a moron, government buys these insurance companies and pays off 50% to the investors, wtf... wtf... government spending is what got us in trouble in the first place...

all he wants is "certainty", he is completely missing the point, there is certianty, certainty that we are going into a recession, lol, he thinks his plan will solve the problem and jump start the economy, lol... yeah right...

EVEN WORSE, he wants more interest rate cuts and is criticizing the fed because they are not cutting the rate enough! oh my...

 

[chiplitfam]

Help!

I would greatly appreciate if someone would explain in layman terms the money crisis. He was speaking about the insurance companies who will be out of money, why the banks will not be able to loan money, and a 250 billion buy out? What happens to people's retirement, savings, 401b's, 401 K's etc.? I know there are a million theories out there, but does anybody have one that makes simple sense? Economics was never my forte. Thanks.

 

[tsetsefly]

I would greatly appreciate if someone would explain in layman terms the money crisis. He was speaking about the insurance companies who will be out of money, why the banks will not be able to loan money, and a 250 billion buy out? What happens to people's retirement, savings, 401b's, 401 K's etc.? I know there are a million theories out there, but does anybody have one that makes simple sense? Economics was never my forte. Thanks.

okay i dont know if its true that the insurance companies dont have money, but i wouldnt doubt it, however his solution would suck even more and put the government further into debt and not even stop the recession..

He thinks what stocks need is certainty that things will get better, however the facts are all pointing towards a recession...

In fact he wants more rate cuts which will only devalue the dollar more and not work...

The problem is we have spent too much are too indebt and have built an economy on credit, when you see that you wont be able to pay that credit things will crash down, like is happening now...

watch peter schiff on youtube he is pot on, there are dozens of his videos out there...

http://www.youtube.com/watch?v=sM7bcDu04os
http://www.youtube.com/watch?v=Lr9cYMD-Xn8
http://www.youtube.com/results?search_type=search_videos&search_query=Peter%20Schiff&search_sort=video_date_uploaded&search_category=0&search=Search&v=&uploaded=&filter=1

 

[RonPaulCult]

The Fed wants to crash our economy - it's all by design. They won't stop until our dollar is as weak as the peso.

 

[hocaltar]

I would greatly appreciate if someone would explain in layman terms the money crisis. He was speaking about the insurance companies who will be out of money, why the banks will not be able to loan money, and a 250 billion buy out? What happens to people's retirement, savings, 401b's, 401 K's etc.? I know there are a million theories out there, but does anybody have one that makes simple sense? Economics was never my forte. Thanks.

The real question is: "are you ready to take the red pill?" Because the truth is, there is NO money. We have what is called a fractional reserve system. Which means that for every 1 dollar a bank has in its' vault it can loan out 9 dollars. So with all the new home purchases over the last 5-10 years going into foreclosure, the banks aren't gettting paid, and their vaults are running on empty.

If the government buys them out, with more magic money it will increase inflation currently at about 6% to who knows what, 8-10%. This will only drive more people into foreclosure and worsen the problem. It's a vicious cycle.

As for people's savings. Inflation is the ultimate thief. It comes day or night, silent and mostly goes unnoticed. If I have 100k in savings and there is 10% inflation, I really only then have 90K. If the next year inflation remains at 10% ill only have 81k. (keep in mind this is only if my savings is making money to begin with)

This is why so many people who like Ron Paul hate the Federal Reserve. Watch this video and your eyes will be partly opened: http://www.youtube.com/watch?v=iYZM58dulPE

One more thing, welcome to the real world.

 

[BeFranklin]

The real question is: "are you ready to take the red pill?" Because the truth is, there is NO money. We have what is called a fractional reserve system. Which means that for every 1 dollar a bank has in its' vault it can loan out 9 dollars. So with all the new home purchases over the last 5-10 years going into foreclosure, the banks aren't gettting paid, and their vaults are running on empty.

If the government buys them out, with more magic money it will increase inflation currently at about 6% to who knows what, 8-10%. This will only drive more people into foreclosure and worsen the problem. It's a vicious cycle.

As for people's savings. Inflation is the ultimate thief. It comes day or night, silent and mostly goes unnoticed. If I have 100k in savings and there is 10% inflation, I really only then have 90K. If the next year inflation remains at 10% ill only have 81k. (keep in mind this is only if my savings is making money to begin with)

This is why so many people who like Ron Paul hate the Federal Reserve. Watch this video and your eyes will be partly opened: http://www.youtube.com/watch?v=iYZM58dulPE

One more thing, welcome to the real world.

It works the other way. For every 9 dollars you have in your vaults, you loan out 12 dollars, expecting no one is going to ask for it all at the same time. Then you make some of those dollars non-liquid assets like real estate, make the dollars paper instead of real money like gold and silver, and then the real estate bubble collapses &ct.

 

[hocaltar]

It works the other way. For every 9 dollars you have in your vaults, you loan out 12 dollars, expecting no one is going to ask for it all at the same time. Then you make some of those dollars non-liquid assets like real estate, make the dollars paper instead of real money like gold and silver, and then the real estate bubble collapses &ct.

I am quite sure we have a 1:9 system. Which makes it even worse.

 

[bp2519]

Yea - Peter Schiff is great... He gets laughed at constantly by the other financial "experts" but he is ALWAYS RIGHT. He predicts large trends in the market whereas the other talking heads can only see two feet in front of their faces. For instance at the end of '06, Peter explained why the housing market would collapse giving explicit information regarding to lending standards and the problem with ARMs. He has a whole myriad of videos on his site, europac.net. I also like www.financialsense.com. I'm now reading Marc Faber who is a great economist as well as Jim Rogers who is the world's foremost expert on commodities.

Ron Paul and other economists have taught me that most large trends in the markets can be explained by austrian economics (free market), and that most of wall street is brainwashed into believing Keynesian economics is the best format.

 

[chiplitfam]

Need Help

I know this old news but what I have heard is that the powers want to devaluate our dollar to a point of equality with the peso, and also bring down the Canadian dollar so that they are all on par with one another in order to bring in the Amero for the NAU. Then the plan is to coordinate that with the Euro. Am I way off base?

I posted this earlier.


--------------------------------------------------------------------------------

I would greatly appreciate if someone would explain in layman terms the money crisis. He was speaking about the insurance companies who will be out of money, why the banks will not be able to loan money, and a 250 billion buy out? What happens to people's retirement, savings, 401b's, 401 K's etc.? I know there are a million theories out there, but does anybody have one that makes simple sense? Economics was never my forte. Thanks.

 

[RonPaulCult]

I know this old news but what I have heard is that the powers want to devaluate our dollar to a point of equality with the peso, and also bring down the Canadian dollar so that they are all on par with one another in order to bring in the Amero for the NAU. Then the plan is to coordinate that with the Euro. Am I way off base?

I posted this earlier.


--------------------------------------------------------------------------------

I would greatly appreciate if someone would explain in layman terms the money crisis. He was speaking about the insurance companies who will be out of money, why the banks will not be able to loan money, and a 250 billion buy out? What happens to people's retirement, savings, 401b's, 401 K's etc.? I know there are a million theories out there, but does anybody have one that makes simple sense? Economics was never my forte. Thanks.

Well think about it. We know they want a NAU. We know the people in charge of that are in charge of the fed too.

Just how are they going to make the American people go along with this? By showing them an economic benifit. That will only happen when we are in deep poo poo

 

[Paul.Bearer.of.Injustice]

Interest rates should be set to 10% immediately.

If you took on too much risk with a mortgage, the rest of us shouldn't have to suffer.
The consumer should eat half and the lender should eat half of the uninsured debt

 

[homah]

If you took on too much risk with a mortgage, the rest of us shouldn't have to suffer.

+1

 

[bp2519]

Interest rates should be set to 10% immediately.

If you took on too much risk with a mortgage, the rest of us shouldn't have to suffer.
The consumer should eat half and the lender should eat half of the uninsured debt

Raising interest rates should be happening but they are trying to pull the wool over our eyes. It's not going to work... we are going into severe recession whether we like it or not

 

[billyjoeallen]

somebody call the Doctor!

 

[chiplitfam]

Hopefully not to sign the Death Certificate!

 

[JenaS62]

The Fed wants to crash our economy - it's all by design. They won't stop until our dollar is as weak as the peso.

And then they will bring out the "savior" Amero - the North American Union currency. It's happening.

 

[chiplitfam]

All of this has been planned for a long long time. Take comfort, Psalm 46:10

 

[AnalogDan]

The Fed wants to crash our economy - it's all by design. They won't stop until our dollar is as weak as the peso.

And then they'll save the day with the Amero.

Hopefully, this will only draw more people to the Ron Paul movement, as he has been predicting this for many, many years. In fact, in his NH town hall meeting, he described his involvement in the political world as a platform to better raise economic awareness for all.

Just FYI, this could be very, very bad everyone. Like the worst our economy has been since the great depression.