Hedge funds are attacking Banks on the subprime lending concessions as Real Estate crash escalates – but all blame goes to those who provided liquidity
Jeff Cantor
Jun. 1, 2007

You can blame it all on any one you like. You as a hedge fund forgot to hedge you risks. You thought the boom is forever; there is no end to good times. But now banks are in trouble too. It is because they have to take substantial losses and thing go worse from bad.

The hedge funds are saying to banks that they cannot allow the poor people who are delinquent on their mortgage stay in their homes. A classic war between those haves and have-nots has started. The banks know if they do not compromise, the real estate will crash further and the losses will be in trillions wiping out many banks and hedge funds. But the rich are not happy with free money from tax cuts. They want it all. The sad part is real estate especially in the older home sector; prices are collapsing, as the homeowners are disillusioned.

Hedge funds are attacking Banks on the subprime lending concessions as Real Estate crash escalates – but all blame goes to those who provided liquidity
Jeff Cantor
You can blame it all on any one you like. You as a hedge fund forgot to hedge you risks. You thought the boom is forever; there is no end to good times.
READ MORE>>

Signs of deflation and start of depression - Dell plans to cut 10% of its work force, its first layoffs since 2001
Fred Day
The cyclical boom with secular long-term economic weakness may have ended abruptly. The technology companies are reporting horrible prospects for 2008-2009.
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Signs of European slowdown - manufacturing leads
Claude Baudau
European growth may cool from the fastest pace in six years as rising interest rates and a U.S. slowdown curb demand for the continent's cars, machinery and appliances.
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Japan’s deflation was the first indication of worldwide economic trouble but all other developed nation cared little – now the collapse is inevitable
Alex Hernandez
When Japan, the world’s second largest economy, faced deflation and stagnation twenty years back from excessive borrowing, the other developed economies did little to understand the impact twenty years later on them.
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Fed worried about deflation – can they stop worldwide depression and total financial meltdown
Sondra Huffington
Easy money that was created in 2001 and the spending craze that we witnessed between 2001 and 2007, is creating a dangerous scenario of multiple bubble bursts in real estate...
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Stock markets in the middle of tightening in the emerging economies – copper prices predicts collapse
Neal Henderson
China and India are in the middle of tightening. The inflation in Chinese areas where export oriented industries are booming and all over India is accelerating very fast. I just came back from a trip to India and China and was shocked what I witnessed.
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Sensex reversal in India and China stock market crash of 6.8% - the start of the end of emerging economy booms
Sondra Johnson
The Chinese and Indian economies were flying with one engine for a long time. The bubble is so large that 1929 bubble in America is miniscule. Unrestrained borrowing, by the public and the Governments fuels the bubble.
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