Just How Bad Can it Get?

September 8, 2007 on 12:26 pm | In Old Posts |

I love this question some days, others I dread it. But let’s face reality. The NYT is even acknowledging the Countrywide problems this morning. But the most damning story is this one:

Negative Amortization and Interest Only: The Next Mortgage Bomb?

If you read that article all the way to it’s conclusion, you’ll understand why I am so bearish on the future of the economy. We are watching this unwind here in Florida at a frightening pace and the news from the past week illustrates the foolishness of the banksters in this regard. We even found out some banksters gave the interest only loans to some commercial developers betting along with them that the properties would flip before the terms reset! That’s the kind of nightmare news that crashes markets and gets the FDIC involved and I am betting the pace of bank failures will really pick up in 2008. For now, grab some popcorn and enjoy the show.

P.S.- Grateful thanks to INVAR at Sworad at the Ready for the animated gif of CW!!!!!!!!!

4 Comments »

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  1. can someone help this old lady, I want to join Timebomb, and can’t find a way to do it. Please help. I know you all are over there.
    I live on a farm, and grew up in the depression, I think what is coming is the same as the 1930’s My parents lost all there money to the bank in Chicago, when it shut its doors.
    So if some one would Email me and tell me how to Join Timebomb I would be so happy. Love Irene

    Comment by Irene Orsborn — September 8, 2007 #

  2. Go to www.timebomb2000.com and email Dennis Olson from the link to his name. He can let you know when the next membership openings will occur. He just closed out adding over 250 more members about two weeks ago.

    Comment by Administrator — September 8, 2007 #

  3. John,

    Thanks for your soild reporting!! I do think its time to invest in wheelbarrows for we will need one to carry all the dollars the fed is printing.

    Comment by mike b — September 9, 2007 #

  4. John,

    Countrywide needs anothe bailout…
    .http://www.bloomberg.com/apps/news?pid=20601087&sid=aYzV5N4yrDbM&refer=home

    Comment by ken — September 11, 2007 #

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