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Structural Problems Cannot Be Solved Though Bailouts! As A Matter Of Fact, Bailouts Make The Situation Worse
Bloomberg reports:Portugal Rating Cut on Possible Greek Follow and Portuguese Bonds, Euro Slide Downgrade
Moody’s Investors Service cut Portugal’s credit rating to below investment grade on concern the southern European country will need to follow Greece in seeking a second international bailout.
The long-term government bond ratings
were lowered to Ba2, or junk, from Baa1, and the outlook is negative.
Discussions to involve private investors in a new rescue plan for Greece
make it more likely that the European Union will require the same
pre-conditions in the case of Portugal, Moody’s said in a statement.
“That’s very significant because not
only does it affect current investors, but it is likely to discourage
new private- sector lending going forward, and therefore reduce the
likelihood that a country like Portugal will be able to regain access to
the capital markets at a sustainable cost,” Anthony Thomas, a senior analyst at Moody’s in London, said in a telephone interview yesterday.
Portugal is the second euro country
rated non-investment grade by Moody’s, joining Greece, after winning a
78 billion- euro ($113 billion) international bailout in May.
European finance ministers last week
authorized an 8.7 billion-euro loan payout to Greece by mid-July, basing
a second three-year bailout package on talks to corral banks into
maintaining their Greek debt holdings.
The euro fell 0.8 percent to $1.4429 at 5 p.m. yesterday in New York, from $1.4539 the day before, when it touched $1.4578, the highest level since June 9.
Portugal’s government debt agency is
scheduled to hold a debt auction today to sell as much as 1 billion
euros of bills maturing in October.
Here is an annotated summmary of BoomBustBlog Archives (in reverse
chronological order) regarding the Portugal situation over the past
year. I invite, if not challenge those who question the utility of the
higher end of the blogoshpere to compare BoomBustBlog opinion and
analysis (as biting, cynical and hard hitting as it may be) to that of
the mainstream media and the sell side analyst community of Wall Street
to determine if independent, proprietarry research in the form of a blog
is something that this country and the global investment community is
in need of... or not!
Over
A Year After Being Dismissed As Sensationalist For Questioning the
ECB's Continued Solvency After Sovereign Debt Buying Binge, Guess What!
There has been a lot of noise in both
the alternative and the mainstream financial press regarding potential
risk to the ECB regarding its exposure at roughly 48 to 72 cents on the
dollar to sovereign debt purchases through leverage, and at par at that.
This concern is quite well founded, if not just over a year or so too
late. In January, I penned The ECB Loads Up On Increasingly Devalued Portuguese Bonds, Ensuring That They Will Get Hit Hard When Portugal Defaults.
The title is self explanatory, but expound I shall. Before we get to
the big boy media's "year too late" take, let's do a deep dive into how
thoroughly we at BoomBustBlog foretold and warned of the insolvency of
both European private banks and central banks, including the big Kahuna
itself, the ECB! The kicker is that this risk was quite apparent well
over a year ago. On April 27th, 2010 I penned the piece "How Greece Killed Its Own Banks!". It went a little something like this...
For Those Who Failed To Heed My Warnings On Portugal, Visualize The Contagion That Causes European Bank Failure!!!
Impact of bank’s banking books on haircuts
EU banking book sovereign exposures are
about five times larger than trading book. The table below gives
sovereign exposure of major European countries for both trading and
banking book. The EU trading book has €335bn of exposure while banking
book has €1.7t exposure towards sovereign defaults. EU stress test
estimated total write-down’s of €26bn as it only considered banks
trading portfolio. This equated to implied haircut of 7.9% on trading
portfolio with losses equating to 2.4% of Tier 1 capital. However, if
the same haircuts (7.9% weighted average haircut) are applied to banking
book then the loss would amount to €153bn equating to 13.8% of Tier 1
capital.
The Pressure On Portugal Increases As Ratings Agencies Finally Arrive To The Fire Before The House Burns Down
Events are unfolding precisely as paying subscribers should anticipate. A quick recap:
- Portugal Is On The Verge Of Tapping Out, UFC Style – You Knew It Was Coming, Here’s The Analysis! Thursday, March 31st, 2011
- ECB
Swallows Massive Portuguese Bond Losses As It Is Clear That The Third
State Will Soon Join The Bailout Brigade – Haircuts, Here We Come!!! Friday, February 18th, 2011 - The
Coming Interest Rate Volatility, Sovereign Contagion, Geo-political
Unrest & Double-Dip Recessions: Here’s The Answer To Valuing Global
Real Estate Through This Mess Tuesday, February 15th, 2011
If one were to dig deeper into link number 1, above, you will see the
impetus (with specificity) behind this next headline: CNBC - Portugal Banks Threaten to Shun Bonds: Report
Portugal's biggest banks will stop
buying government bonds and are urging the caretaker administration to
seek a short-term loan to secure financing until a June 5 election,
business daily Jornal de Negocios reported on Tuesday.
Of course, its very expensive throw capital down the toilet when your crapper is full AND you run out of capital!
The heads of Banco Espirito Santo, Millennium bcp and Banco BPI met with the governor of the Bank of Portugal on Monday to pass on their views, Jornal said.
Hey, we've heard that name before, haven't we?
And this is why we've heard that name before... It ain't just Europe!
It appears the phenomenon is virulent and
global - We've all been Bamboozled by the Banking Industry! Regardless,
the Chickens are coming Home to roost!
"Game Over"
Jornal de Negocios ran a separate
column on Tuesday titled "Game over, we have lost, Mr Engineer,"
referring to Prime Minister Jose Socrates who has insisted the country
needs no outside help. Socrates vowed on Monday to keep resisting a
foreign financial rescue for the debt-laden country, including the
short-term loan suggested by the opposition.
Yeah! Okay...
Asked if a loan from the IMF was possible if the country faced immediate financing problems, Socrates told RTP television: "I
don't know of any IMF financing line that would not enforce a programme
with conditions. "All programmes that have been negotiated so far were
very severe in terms of measures demanded from a country," he said.
What was originally borne from Europe may yet return. Am I the only one bold enough to hint at indentured servitude???
Comparison to slavery
Like slaves, [indentured] servants could
not marry without the permission of their owner, were subject to
physical punishment (like many young ordinary servants), and saw their
obligation to labor enforced by the courts. To ensure uninterrupted work
by the female servants, the law lengthened the term of their indenture
if they became pregnant. But unlike slaves, servants could look forward
to a release from bondage. If they survived their period of labor,
servants would receive a payment known as "freedom dues" and become free
members of society.[19]
One could buy and sell indentured servants' contracts, and the right to
their labor would change hands, but not the person as a piece of
property.
On the other hand, this ideal was not
always a reality for indentured servants. Both male and female laborers
could be subject to violence, occasionally even resulting in death. Richard Hofstadter
notes that as slaves arrived in greater numbers after 1700, white
laborers became a "privileged stratum, assigned to lighter work and more
skilled tasks."[20]See also: Black Codes in the USA
Have the Portuguese been Hoodwinked! Bamboozled! Run Amok? Led Astray?
Portugal Is On The Verge Of Tapping Out, UFC Style - You Knew It Was Coming, Here's The Analysis!
ECB
Swallows Massive Portuguese Bond Losses As It Is Clear That The Third
State Will Soon Join The Bailout Brigade - Haircuts, Here We Come!!!
Here is a sequence of events that I warned
thoroughly about, and is unfolding like clockwork. Witness the massive
destruction of capital, despite the fact that it could have been so
easily seen at least a year in advance. Let's walk through just the past
couple of months. In January, I posted "The ECB Loads Up On Increasingly Devalued Portuguese Bonds, Ensuring That They Will Get Hit Hard When Portugal Defaults". To wit...
About a month ago, I pulled the covers off
of the speculation over whether Portugal would default or not. Most of
the “experts” declared that a default was not in the cards. I strongly
recommended that the so -called “experts” pull out a calculator and run
the math. Not only will there be defaults, but the haircuts will look
particularly nasty. See The Truth Behind Portugal’s Inevitable Default – Arithmetic Evidence Available Only Through BoomBustBlog followed by
The Anatomy of a Portugal Default: A Graphical Step by Step Guide to
the Beginning of the Largest String of Sovereign Defaults in Recent
History (December 6th & 7th, 2010).
The Truth Behind Portugal's Inevitable Default - Arithmetic Evidence Available Only Through BoomBustBlog
You don't need a "wikileaks.org" site to
reveal much of the BS that is going on in the world today. A lot of
revelation can be made simply by having motivated, knowledgeable experts
scour through publicly available records. I'm about to make said point
by showing that the proclamations of the ECB, IMF, the Portuguese
government and all of those other governments that claim that Portugal
will not default on their loans is simply total, unmitigated, uncut
bullshit nonsense.
If you recall, I made a similar claim regarding the Irish government and posted proof of such, see Here’s Something That You Will Not Find Elsewhere – Proof That Ireland Will Have To Default… November 30th, 2010.
...BoomBustBlogger Nick asked:
Reggie-
Do you have any reason as to why they are choosing 2013 as a deadline ? Seems like an arbitrary date.
Well, Nick, just follow the money or the lack thereof…
So, what debt raising and servicing that
was unsustainable in 2010 was lent even more debt to become even more
unsustainable. The chickens come home to roost in 2013, post
IMF/EU/Bilateral state leveraged into Ireland loan/Pension fund raiding
bailout! What Angela in Germany was alluding to was what all in the
know, well… know, and that is that Ireland is already in default and
those defaults have been purposely pushed out until 2013. Angela simply
(and wisely from a local political perspective, although unwisely from a
global geopolitical standpoint) admitted/suggested was that the
defaults will be pre-packaged and managed ahead of time. The EU
politbureau insists that politics rule the day, and no prepackaged
structure be in place for the Irish defaults to be. This means the
potential foe even more carnage through the pipelines of uncertainty!
The Mathematical Truth Concerning Portugal’s Debt Situation
Before I start, any individual or entity
that disagrees with the information below is quite welcome to dispute
it. I simply ask that you com with facts and analysis and have them
grounded in reality so I cannot right another “Lies, Damn Lies, and Sovereign Truths: Why the Euro is Destined to Collapse!“. In other words, come with the truth, or at lease your closest simulacrum of it.
In preparing Portugal’s sovereign debt restructuring model through maturity extension, we followed the same methodology as the Greece’s sovereign debt maturity extension model and we have built three scenarios in which the restructuring can be done without taking a haircut on the principal amount.
-
- Restructuring by Maturity Extension – Under this
scenario, we assumed that the creditors with debt maturing between 2010
and 2020 will exchange their existing debt securities with new debt
securities having same coupon rate but double the maturity. Under this
type of restructuring, the decline in present value of cash flows to
creditors is 3.3% while the cumulated funding requirements and cumulated
new debt between 2010 and 2025 are not reduced substantially. The
cumulated funding requirement between 2010 and 2025 reduces to 120.0% of
GDP against 135.4% of GDP if there is no restructuring. The cumulated
new debt raised is reduced marginally to 70.6% of GDP from 72.2% of GDP
if there is no restructuring. Debt at the end of 2025 will be 104.8% of GDP against 106.1% if there is no restructuring - Restructuring by Maturity Extension & Coupon Reduction
– Under this scenario, we assumed that the creditors with debt maturing
between 2010 and 2020 will exchange their existing debt securities with
new debt securities having half the coupon rate but double the
maturity. The decline in the present value of the cash flows is 18.6%.
The cumulated funding requirement between 2010 and 2025 reduces to a
potentially sustainable 99.5% of GDP and the cumulated new debt raised
will decline to 50.1% of GDP. Debt at the end of 2025 will be 88.6% of GDP (a potentially sustainable). - Restructuring by Zero Coupon Rollup – Under this
scenario, the debt maturing between 2010 and 2020 will be rolled up into
one bundle and exchanged against a single, self-amortizing 20-year bond
with coupon equal to 50% of the average coupon rate of the converted
bonds. The decline in the present value of the cash flows is 17.6%. The
cumulated funding requirement between 2010 and 2025 reduces to 100.1% of
GDP and the cumulated new debt raised will decline to 52.8% of GDP. Debt at the end of 2025 will be 90.9% of GDP (a potentially sustainable).
- Restructuring by Maturity Extension – Under this
The scenarios above were also
calculated using the haircuts necessary to bring debt to GDP below a
pre-selected level (user selectable in the model, 80%, 85% or 90% -
please keep in mind that a ceiling of 60% was necessary in order to gain
admission into the Euro construct). We have also built in
the impact of IMF/EU aid on the funding requirements and new debt
raised from the market between 2010 and 2025 under all the scenarios.
A more realistic method of modeling for restructuring and haircuts
In the previously released Greece and
Portugal models, we have built relatively moderate scenarios of maturity
extension and coupon reduction which would be acceptable to a large
proportion of creditors. However, these restructurings address the
liquidity side of the problem rather than solvency issues which can be
resolved only when the government debt ratios are restored to
sustainable levels. The previous haircut estimation model was also based
on the logic that the restructuring of debt should aim at bringing down
the debt ratios and addition to debt ratios to more sustainable levels.
In the earlier Greece maturity extension model, the government debt at
the end of 2025 under restructuring 1, 2 and 3 is expected to stand at
154.4%, 123.7% and 147.0% of GDP which is unsustainably high.
Thus, the following additional spreadsheet
scenarios have been built for more severe maturity extension and coupon
reduction, or which will have the maturity extension and coupon
reduction combined with the haircut on the principal amount. The
following is professional level subscscription content only, but I would
like to share with all readers the facts, as they play out
mathematically, for Portugal. In all of the scenarios below, Portugal
will need both EU/IMF funding packages (yes, in addition to the $1
trillion package fantasized for Greece), and will still have funding
deficits by 2014, save one scenario. That scenario will punish
bondholders severely, for they will have to stand behind the IMF in
terms of seniority and liquidation (see How the US Has Perfected the Use of Economic Imperialism Through the European Union!)
as well as take in excess of a 20% haircut in principal while suffering
the added risk/duration/illiquidity of a substantive and very material
increase in maturity. Of course, we can model this without the IMF/EU
package (which I am sure will be a political nightmare after Greece),
but we will be recasting the “The Great Global Macro Experiment, Revisited” in and attempt to forge a New Argentina (see A Comparison of Our Greek Bond Restructuring Analysis to that of Argentina).
Here is graphical representation of
exactly how deep one must dig Portugal out of the Doo Doo in order to
achieve a sustainable fiscal situation. The following chart is a
depiction of Portugal’s funding requirements from the market before
restructuring…
This is the same country’s funding requirements after a restructuring using the "Restructuring by Maturity Extension″ scenario described above…
And this is the depiction of new debt to be raised from the market before restructuring…
And after using the scenario “Restructuring by Maturity Extension″ described above… For all of you Americans who remember that government sponsored TV commercial, “This is your brain on drugs. Any Questions?“
The full spreadsheet behind all of the calculations, scenarios, bond holdings and calculations can be viewed online here...
Online Spreadsheets (professional and institutional subscribers only)
- Portugal's Debt Ridden Finances: An Analysis of Haircuts, Restructuring and Strategy - Professional Analysis
- advertisements -
Reggie. As always, the devil is in the details. You are a stickler for details. Lots and lots of details.
Your subscribers should be thankful.
Not quite.
The 'structures' on Martha's, Jew Nork (like 85 Broad), and other posh environs are larger, stronger, and much more luxurious than they were several short years ago.
Depends on your definition of 'structural', and whose structure is being gored, n'est ce pas?
Great post
They will not stop until it finally and completely. breaks.
Greed is like drinking saltwater, the more you drink, the thirstier you are
-Roman Proverb
Moody's is handy when you want to make the dollar look stronger.
I agree. This is 1913. In 1913, who'd have predicted that the European monarchies would all be gone in 6 years? Certainly not the monarchs themselves or they'd have been a little more careful about starting something they couldn't finish.
"This is why you have a draft." Germany wins because "Charlie don't surf." You can make the "biggest government in history" but it means nothing if you don't have a standing army and therefore are already "paying for THAT." As such "the time for fun and games" comes due abruptly because if you are German you have a "charge a garder." I'm not sure i understand anything else going on in Europe although this is quite the analysis. Reading it however I'm still unclear what i should be buying in here and I found your "Great Depression is upon us" article at SA Reggie rather out of place. Remember "nearly to a man and woman the people on CNBC are not from New York City" and even more poignantly "none are from the State as a whole" and appear to have the State's interest in their crosshairs at best. That's why it's so easy for Larry Kudlow to scream about how he hates the Rockefellers live on his show. "All they did is create the modern New York State." How ironic all the heirs were asking at the time for was a serious effort for all involved to get the entire nation on an alternative energy path, right? That's preessience you can't put a price on. Wouldn't you agree? Needless to say no one would argue with that family's "jobs program." As it turned out it was probably was the greatest we will ever know. (With a salute to West Point and "the men who had the stars fall upon them" of course.) But enough already--we know at least A solution. It's time to ask why such a huge chunk of Wall Street and strangely it would seem even parts of DC no longer cares about making fortunes or moving their Armies forward but instead "want all their money/monies in long dated treasuries."
Huh?
"..... a huge chunk of Wall Street and strangely it would seem even parts of DC no longer cares about making fortunes or moving their Armies forward but instead "want all their money/monies in long dated treasuries."
Where is this chunk? Bear Stearns, Lehman Bros, Madoff?
Quod Erat Demonstradum?
truth is for people
that can't handle....
extend and pretend
Hey Reggie there is NO truth. Just don't tell the preacherman that as he tries to con you with a fictional book.
Otherwise what you say is more or less correct as it is obvious.
German foreign minister Westerwelle calls for an independent European ratings agency...there you go...just solved the Euro cluster fuck.
http://www.earthtimes.org/articles/news/321203,german-foreign-minister-calls-for-european-credit-rating-agency.html
But. But.. But... Reggie the Free Money the Banks get are helping the klepto's feel so much better about themselves and moral is very important!
we have to keep the bankers doing God's Work Happy, Happy.. Happy!
Don't be a such a downer Reggie! all this truth will not help the Poor Bankers feel any better! and it is all up to them to save us insects from ourselves! dont chya know!
Two small 4 person boats half-filled with water, a person in each boat with a bucket, bailing the water in their boat into the other person's boat.
Why oh why can't they get the water out of that boat?
Maybe if they get a bucket of water from the lake and pour it in the other person's boat, it will sink more, displace more water in the lake, and buoy their boat!
For a moment in time it works because the other person's boat is sinking compared to their own.
Genius.
Since everyone seem convinced that the Euro (and EU) are toast, I'll vote against that observation.
Easy, boy. Don't mistake this tiny cosmos as what "everyone" is doing.
If Everyone is convinced, then the Euro would be at 1.00 and a long time ago.
The tug-o-war is ongoing and there is no clear majority that is right about the euro.
Who has put all their money on the dollar? Or even most of it, besides The FED? and who the hell knows what they are doing, really?
Reggie,
You need to read David Barton if you want the truth about black history, slavery and indentured servitude in Early America. Your boy Richard Hofstadter was a very intelligent writer but like many Progressive academics, he thought so much of himself that he didn't do enough research, how can you write history without research?
In contrast Barton's works often have a bibliography that consumes 1/3 of the book in the back. He owns a massive collection of pre-civil war documents and letters, 2nd only to the Library of Congress. He is the fact man.
Condescension is rarely welcomed by those at whom it is directed; therefore it makes a poor conversational gambit. "Social graces are important, because they make social discourse possible".
Yes, and an armed society is a polite society, and while we are at it(armchair psychologists unite!), did anyone ever command you to "chill out?"
I can sit down and talk to my grandmother in SC for a first hand accou t of slavery, servitude and black history in America. My personal collection of Africana diasporaadocuments, bothpreandpost civil war dwarfs most universities. I have an inkling of who I am.
Wow cool if your granny can give a first hand account of slavery she must be over 15O years old.
You are also incredibly lucky if you know who you are. Some of us spend a lifetime figuring that out, but most people never do find out.
What matters, Reggie, is what you make of yourself, not what others in the past have done. And you, Reggie, have done one spectacular and impressive job. You made yourself what you are, not inherited. And we're all better off for that.
Im a mongrel..but I take the ideas not the history..I guess that makes me shallow..but a person who admires solutions..experience says solutions are born out of the best ideas about what is going wrong, fixing the solution in goals and ... working out a plan to get there that hurts the least (and the offenders the most)... keep going Reggie..and if you can save me the pain of a PIIGS expsoure by the five or so major banks in FRUKGENETH, I will buy you a proper beer (cold) next time you are in London..my oath on it! heh..phooligan2008@yahoodotcom..i can make that a promise to anyone..but you have to be beyhond the need for street cred, swingingdickitis, and be an evidence based truth sayer like Reggie! testis sum agnitio!
Watch celebrity rehab and see what bailouts achieve.
Why not a blank check to Greece and Portugal without all this bullshit? We dont need to hear all this same nonsense each year. Nothing has changed and no amount of money will fix the problem.
The free market is based on building and refining risk-reward strategies in your sector. If the risk is removed by financing shortfalls and corruption with tax dollars, then market-healthy behavior will inevitably deteriorate, along with the patience of the middle class.
This does not end well folks...
There is no fixing the fiat system. Eventually, policy makers will realize that a deflationary wipe-out is inevitable - and that real price levels must fall to pre 1980 levels - if not pre 1970 levels. No amount of bailout, subsidies, political and financial corruption can prevent a currency collapse. The central bankers are shooting at a hurricane with a BB gun.
A little over a month ago ZH published an article by Gordon T. Long called "EU - A Flawed Foundation, But Brilliant Strategy?".
For me, that article demystified the Eurozone situation. It really boils down to these observations from the article:
Question: "Why would we implement a flawed system?"
Answer 1: Someone else would carry the liability.
.... and the tax payer has.
Answer 2: Because there was a lot of money to be made!
.... and it has been made.
Do you really believe that major banks would put themselves in a position where they lent endlessly to the kids knowing they would be left holding the bag? They knew the outcome and who was going to be left holding the bag. ??
It was certainly not going to be those with an army of lawyers, lobbyists, campaign contributions and most importantly, a strategy. ??
Now the EU has hit a wall. The gig is up.??
It is time for the next phase of the Mercantile Strategy, the demand for collateral and the family silver.
It must never be forgotten that the banks create their money from your money. It is only time, therefore before as in a children's monopoly game, they own the whole board.
The EU is built on a FLAWED FOUNDATION but a brilliant STRATEGY ……
…. Unfortunately the People own the foundation & banks the strategy!
the full article is here:
http://www.zerohedge.com/article/guest-post-eu-flawed-foundation-brillia...
I think it sums up the situation perfectly. Banks made loans they knew could not be repaid. They did so knowing they would be covered in the form of bailouts and fire sale priced privatization of national assets. It was not an accident...it was the plan.
that Q&A explains most "systems"
That is the end game most people here seem to just ignore ... looking in glee at the inevitable collapse and thinking the private banks which credited the debt for the last couple of decades will get their comeuppance is truly naive. The loans will go to the ECB before the collapse comes, and the banks will buy up all the privatized assets.
The 1% don't care if their wealth can buy less luxury cars as the economy comes tumbling down. They denominate their wealth in things like m2 of land, ownership of media companies (and by extension governments), power companies, water companies etc etc. In that respect the 1% will come out on top in the inevitable collapse as much as they came out on top during the debt bubble's rise.
+10
Great post Marco.
Most don't realize that this is a planned destruction of nations and economies in order to benefit those already at the top.
They want to own it all, leaving the rest of us to fight over crumbs.
The problem is that each one "at the top" thinks that "I'll come through it OK...I may lose a little but...hey!...Rosalita! Could'ya get me another wine? Like, NOW!"
World War 1 was gonna be such an easy war. Slap around a few ingrates, get a painting done of a General on a horse. It was gonna be over in a month or two...
CW
I think this is what is referred to in polite circles as moral hazard and on the street as a gang bang,
Moral hazard has become God's will, with the full faith and credit of the almighty.
Yeah, well, God is welcome to put his bets on the table, but I'm sticking with my Silver Bullion.
Aren't we past the point of polite circles...just saying
DaddyO
Reading about all the Wall Street layoffs and now this EURO clusterfuck puts me in a chirpy mood. Rub it in Reggie... ;-)
Reggie for President!
of the EU
What? And dethrone my boy van Rompuy? No way amigo!
You don't need a "wikileaks.org" site to reveal much of the BS that is going on in the world today. A lot of revelation can be made simply by having motivated, knowledgeable experts scour through publicly available records.
Ain't that the truth.
Well done (as usual) Reggie, your wife must be getting tired of listening to how right you are all the time at the breakfast table!
Rule 1: The Ponzi MUST continue at ANY cost.
Rule 2: Never forget Rule 1.
We are so totally freaking screwed.
It's all about finding motivation for people after the ponzi music stops. Whatever they'll need, be a supplier.
...on the left coast past few weeks. The general consensus as far as I can tell, is "inflate your way out, only solution." The olderer boomers are talking buying houses?!? Yes, I know but they've been right before and I've been wrong, oh so wrong.
Im a boomer and have been buying houses since last fall. Bought 3 so far, all are worth more than I paid and the rent gives a higher return than any bond or stock.
But the main reasons for buying them, when you own real estate inflation is your friend esecially if you have a big mortgage, and they are nearly impossible for the big boys to thimblerig.
Structural problems are purposely being aggravated, there is no chance to solve them with the current power structure.
There will be no stopping graft, especially with the collusion between the usury clan and the politicians they have purchased. Bailouts are a critical component of the "debt for assets" program that the owners of Central Banks have employed.
If you start a new rating agency you can call it Reggie's.
Rated Junk by Reggies It has a nice ring to it.
I, for one, do not want to see Reggie's junk.
Outstanding, William; plus 35$/oz.
In the future Bill, warn us that we should not be drinking anything before we scroll down.
Yes Wild Bill... my PSE almost kicked in..(chuckle)
Persons with PSE experience epileptiform seizures upon exposure to certain visual stimuli.