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looks like you got it all covered Gump
Hey gump.....
did ya see the SEC finally got MDOR....?
How goes it? Email me if you still have my addy.....
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PROFESSIONAL DISCLAIMER : The person using the alias gump90 is a Registered Professional Engineer ( B.C. Canada ) Retired Status. He is a Professional Mining Geologist of more than 60 years experience in the mineral exploration industry. The opinions expressed here and elsewhere are his own opinions and are not intended to be investment advice or recommendations and should not be relied on as such. He accepts no responsibility for any financial losses that readers may incur. He is affiliated with no one or no group of any kind. He does not own any shares of KATX or KATG, nor is he short any. Posted and certified by gump90
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Six more hard years tipped for subprime fallout
Benjamin Scent
Monday, November 19, 2007
The US subprime crisis will continue for years to come and America may be facing a permanent decline as an economic power, famed investment guru Jim Rogers said over the weekend.
"The situation is going to continue to deteriorate," he said in Hong Kong.
"When you have a bubble, it normally takes years to work out all the ramifications."
The subprime crisis is not over, Rogers said.
"I think we have a long way to go before it's finished," he said later at a conference. "When you have a bubble like this, it usually takes five to six years to clean it up."
Rogers said not many people have lost their houses yet despite a credit bubble that allowed Americans to buy a house with no down payment - a situation unprecedented in US history.
But he said many will lose their homes before the crisis is over.
"Inflation's going to get much worse. You are going to have more people losing money. You're going to have more bankruptcies," he said.
On top of his dire prognosis, Rogers said he does not see anything that could be done to save the day.
But, he said, any steps the US authorities take to try and stop a recession will not help the economy anyway.
"Let it happen," he said. "There are these bad elements in the economy that need to be cleaned out."
Rogers said that America's position as an economic power may be starting a permanent decline.
"The United States has certainly peaked," he said.
"America, in [my daughter's] lifetime, will certainly be a shadow of its former self." Rogers has one daughter, Happy, who is four.
China will be the "next great country in the world," following Britain's economic dominance in the 19th century and the United States after that.
He said of the ramifications of a devalued dollar: "You've got to figure out ways to protect yourselves. It's going to change, the world as we know it."
The dollar's decline is getting "very bad," he said.
He predicts many countries are going to stop using the US dollar.
In response to reports that Gulf countries, including the United Arab Emirates, are pondering dropping their currencies' pegs to the US dollar, he noted some countries had already done so and expects more to follow suit.
"In 20 years, very few [countries] will have their reserves in US dollars - very few," Rogers said. "You have to be nuts to buy US dollars in the twenty-first century."
Rogers also called on US Federal Reserve chairman Ben Bernanke to resign for devaluing the greenback.
"All he knows about is printing money, and he's doing it," Rogers said. "He doesn't know about the value of the dollar; he doesn't care about the value of the dollar."
The bow-tied investment sage, who helped launch the Quantum Fund with George Soros, said the yuan could replace the US dollar as the world's reserve currency in 15 years, after it becomes fully convertible.
"I don't suspect the euro's going to last 15 to 20 years from now," Rogers said.
"The yen will never be able to replace the dollar."
Soros, Greenspan, Gross: More subprime fallout ahead
Posted Nov 6th 2007 2:07PM by Joseph Lazzaro
Filed under: Bad news, China, Economic data, Housing, Federal Reserve
When financial world's mavens speak - - such as Alan Greenspan, George Soros, Bill Gross - - the markets usually take notice.
And when the mavens speak in unison regarding economic fundamentals, well, a word to the wise: be certain to record those data points before forming your own conclusion regarding the U.S. economy's health.
Soros, in a lecture at New York University, said the U.S. economy was on the verge of "a serious correction."
"I think we are definitely in for a slowdown that I think will be a bigger slowdown than (Federal Reserve Chairman Ben) Bernanke is seeing," Soros said, Reuters reported.
Soros also said that, for now, China is the "absolute winner" at the start of the globalization age, that its economy will continue to grow at a strong rate in the years ahead, but that in 10 years time "there could be a financial crisis in China." However, Soros refused to state what currency positions he held or where he thought the dollar, euro and the pound - - the world's primary reserve currencies - - were headed in 2008.
Meanwhile, former U.S. Federal Reserve Chairman Alan Greenspan said Tuesday that cutting the supply of excess homes in the United States is key to stabilizing the financial system at home and the rest of the world.
Greenspan told Tokyo business leaders via video conference from Washington, D.C. that the key to resolving the subprime issue, and by extension, the international financial system, rested on "getting rid of probably 200,000-300,000 excess units in inventory [unsold houses in the U.S.]," The Associated Press reported.
Further, PIMCO's Bill Gross, chief investment officer of the world's largest bond fund, mirrored Greenspan's statement, and argued that the worst of the subprime crisis is still ahead:
"We've only begun to see the pain from the standpoint of the homeowner in terms of those monthly payments," Gross told business news channel CNBC Tuesday. "Defaults and delinquencies will increase as we extend throughout 2007 and into 2008." Gross said he sees another $250 billion in defaults for the next two years, and that large lenders such as Citigroup (NYSE: C), Merrill Lynch (NYSE: MER), and Bear Stearns (NYSE: BSC) will be paying the price.
Economic Analysis: Taken as a whole, the three's comments do not represent a resounding affirmation of the soundness of economic conditions in the U.S., to say the least. Greenspan's comments appear to be the most illuminating and prescient: illuminating, in that they summarized the crux of the problem facing the financial system - -namely, unsold homes; prescient, in that they point to likely economic conditions, six- to nine-months ahead. Greenspan offered no recommendations regarding how to price and sell the up to 300,000 unsold homes in an orderly, systematic fashion, but with the core problem more-clearly identified, that will be the next compelling question facing policy makers [including the U.S. Federal Reserve], as well realtors and home owners alike.
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