More Fun to Come

July 31, 2007 on 9:04 pm | In Old Posts |

So I told everyone the other day to watch the charts and the first chart on my home page was AHM (American Home Mortgage). Needless to say there was a tad bit of news this afternoon on that company. Before you dismiss the chart below (5 day activity chart) I suggest you start memorizing it. History is full of charts like this, viewed, shocking folks, then forgotten because Bubblevision says “it’s different this time” or some other such nonsense. In this writer’s opinion, the more creative financial instruments developed in the last decade are neither improvements to our capital exchange system of finance nor adding a layer of safety as the so called experts declare. As far back as the 1907 era, the solution to all of America’s financial instability was to create the Federal Reserve in 1913 and let it do what was needed. After 1929, the government increased it’s influence with a taste of Marxism to create the phony “safety net” for America’s (now anyone that fog’s the mirror) citizens. Of course, that was not the end of the insane tinkering. Nixon abolished the gold standard and put the Fed and the Treasury Department in charge of maintaining a stable economy. For some reason I just don’t view the late 1970’s as the safest nor most stable time of my life. Now, with the PPT established after 1987, events just do not add up. If our lives are so much “safer” and our markets so much more “stable” then how do events like the credit bubble begin? Worse yet, if our markets are so under control, then please folks, ask the economic leaders (or your broker for yucks) why these charts exist:

The top chart is for “Etoys” another great idea from the bubblecrats.

The bottom chart is AHM, once again, another great idea from the bubblecrats.

What is a bubblecrat? The maroons who think that creating companies based on money, not productivity, not a capital creation, no, not even a manufactured item, just creating companies to create money based on other people creating money or credit.

They are also the same people in charge of D.C. Be scared, be very scared.

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  1. Great show tonight, John. You keep hitting the nail on the head. Eventually, you will bury it into the wood and by that time the net will be shut down or severely restricted. Thank God for shortwave.

    ABC is apparently another one in trouble. End of the month is a bad time for mortgages not to get funded. My wife explained this since she used to be in the mort. business. Here are some comments from the loan officers forum:

    [Was awaiting a clear to close. Just to another loan last night, which I was intending on place with ABC. Have two more loans on the table, that like the Power Series Arms.

    AE not picking up phone, nobody is answering the telephone in the processing office…

    Violated is not the word, it’s unbelieveable!!!!!!!!!!]

    [I had 4 loans signed and pre funded. Today i found out that ABC is up for sale to the biggest offer. Thats just straight up bull****. They reversed all the wires that were supposed to go out today. I dont know how banks can just screw borrowers out of there loans. I have four very angry borrowers now with 30 day lates. I would never ever ever use ABC for anything ever again.]

    [We have borrowers who have their homes packed up and in moving trucks thinking they were closing today and now just have to put their stuff in storage and wait for the next step. Yes, that was pretty risky on the buyer’s side to go ahead and assume that everything would close smoothly but on the other hand it seems unethical for these lenders to all of a sudden just halt business. It really is terrible. ]

    [We have a loan with ABC that was SUPPOSED to fund yesterday and the wire never got to the title company. We called ABC last night after being on hold for almost an hour a lady from the funding department got on the phone. She said she did not know if the loan was going to fund because she didn’t even know if she would have a job tommorrow!!!! She then asked if we could say a prayer for her. It really is a sad situation for the company and everyone who has loans with them that are supposed to fund.]

    http://forum.brokeroutpost.com/loans/forum/topic.asp?TOPIC_ID=147343&whichpage=1

    It is a jungle out there, John. Let’s hope that everyone listening to you and Steve had made their preps, topped them off and are ready for the next great depression. BTW, I used to ask my great grandmother what it was like during the Great Depression (she was born in 1899) and she told me enough stories that would make your hair stand up.

    Oh, and I remember Mark Koernke talking about depressions back in the late 90s on his radio show. One thing of note was that he said that a man with a $100 bill would starve. A man with some change or a few dollars would eat. Noone could break a C note.

    We should never forget where the blame for this lies. The unFederal Reserve, the Wall Street ‘pin stripe bandits’ as Jim Cedarstrom calls them, and the other financial shenanigan guys. I remember years ago when Steve Quayle said to stay away from derivatives. He was right. The whole stack of cards is coming down.

    Thank God for precious metals. My 401K has taken a beating. Good thing I don’t count on it..

    Comment by Joe — August 1, 2007 #

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