.... Can't Seem to Put the Market Back Together Again
Despite all the government intervention ... and artificial monetary stimulus ... when you look around, not much has changed.
We're still awash in millions of excess homes ...
We're still witnessing the sharpest home price declines in decades ...
We're still seeing hedge fund implosions ... mortgage company meltdowns ... and multi-billion dollar write-downs almost every day.
Just this week, a mortgage bond fund run by the high-powered private equity firm Carlyle Capital essentially collapsed. The fund couldn't meet more than $400 million in margin calls from its lenders, forcing it to default on a whopping $16.6 billion in debt.
Bloomberg puts the total count of losses and write-downs related to the mortgage crisis at $188 billion ... and counting.
And that just underscores a fundamental point I've been making for a long time ...
The only way to prevent the pain of popping bubbles is to prevent bubbles from inflating in the first place!
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