Repeating the crash of 1929

[KafirChobee]

Interesting article, this. Is not really that long, and has something for everyone on whom to accuse for our living on the edge of a financial precipice.

http://www.alternet.org/story/56443/

I knew about selling short, but naked shorting is a new one for me - and no it isn't selling stocks over the internet in the nude.

Imaginary stocks, an unchecked rising national debt (+$9Billion, last I checked), a housing market in freefall (in some areas), and an SEC that refuses to uphold the laws governing it - sounds good to me. As the article says: "Greed is good." - again.

I bring this back up because of the concern reflected in another posting about China's "threat" about flooding the world with US dollars and causing their economic suicide while attempting to force the US into appeasement to back off sanctions or forcing the China government to be responsible world citizens.

First off, the portion of the US National Debt ($9Trillion and growing) that the Chinese have is less than $700Billion - in Treasury bonds. It is a significant amount, but all they can do with it is sell it - put it out for bid by other nations. Now, if the bonds were due - then they could of course force the US to pay up. Which of course the US would do by putting the bonds up for bid and paying off what ever difference they couldn't get by the sale.

http://zfacts.com/p/318.html
http://zfracts.com/p/461.html
http://ustreas.gov/tic/mfh.txt

So, not as big a deal as the Chinese would like us to believe. Mater of fact, it would influence their growht more than ours. It might even reduce the number of Western Corporations in their willingness to risk further capital investment there.

Poor Chinese still don't fully comprehend capitalism - a really dumbfounding move by the Commies. Showed their true colors to early.
Would really like to play poker with the jokers that promoted this bonehead idea to them.
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No, what we need to be more concerned with is what I mentioned above, and:

Of course the National Debt must be addressed, and soon. The continuation of its expansion will eventually put us in an intainable possition that actually could be exploited if another nation owned a disproportionate share of it. That is not the present case - but, it maybe in the future if other nations decided to sell off theirs as well.

The collapsing mortgage industry is of more concern. Thanks to deregulation of loans and a greedy banking industry that took their profits from the bennies of granting loans (fees) then selling them. Collapse of the mortgage industry would cause a domino affect. Just as that of the housing markets present spiral will do.
http://www.congoo.com/Industry/mortgage-industry
http://www.wannanetwork.com/blog/view/?ID=3870
Combine all four; The Stock Mrkt, the Mortgage Ind., the Housing Mrkt, and the uncontrolled Nat'l debt - and one has an out of control recession that could end by make 1929 look like a cake-walk.

Good news, btw, for all the neo-con Billionaires - a good depression is always good for the Wealthy.
"And the rich get richer, the poor get poorer. But, inbetween time - in the mean time ... and we got fun."