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The continuing devastation unleashed by the US subprime crisis not only impacts Americans and their investments in real estate, it is also having terrible effects on foreign economies. According to Max Keiser and his excellent reporting for the People and Power series on Al Jazeera, Iceland is quaking under the weight of bad US debt.

Below are two links, one on Keiser's work covering the Iceland story back in the Summer of last year (!) and another link to how the story is only now surfacing in the UK as the result of Britain's similar problems and their effect on countries like Iceland.

Stories like this make you ask, "Is it now true that the only way the US can maintain its standard of living is by exporting bogus wars and bad debt to foreign countries?"


 

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collapse baglenmushie See Profile I'm a Fan of baglenmushie

As always a pertinent subject put forward for exploration, in this time when the world is now flat and we are all part of the same financial jigsaw puzzle. We can ill afford to turn a blind eye to what other countries policies are as we all seem to have a finger in each others pot, and cannot help but get burned if sound financial policies are not only in place but policed world wide. It is scarey to realize that most Americans are truly unaware of just what countries are holding the US debt. They rail against Chinese imports (with just cause) but seem to think there is some mythical money god out there supporting the economy, what a surprise they will have when they pull their collective heads out of the sand to find they need to learn Mandarin ! Please continue to challenge and inform, there are few others that pin point things so succinctly.

favoriteFavorite Flag as abusive Posted 02:44 AM on 04/02/2008
collapse BlueBerryPickN See Profile I'm a Fan of BlueBerryPickN

There is no WE in CORRUPTION.
http://thiscanadian.typepad.com/this_canadian/2008/03/there-is-no-we.html

YOU THINK you're SCREWED NOW?

As a Canadian, lemme tell ya... the crimes NAFTA perpetrated on America's behalf upon Canada was JUST A TEASER to what the "Security & Prosperity Partnership" is gonna do to the US (& Canada).
There is no WE in CORRUPTION

JUST A TEASER. Americans are so used to believing that *screwing other people* benefits AMERICANS... they just can't get it through their heads that THE CHICKENS HAVE COME HOME TO ROOST.

INTEGRATE THIS! Challenging the Security & Prosperity Partnership
http://www.canadians.org/integratethis/

Chase mortgage memo pushes 'Cheats & Tricks'
"The bank says it never backed the strategies, which detail how to get an iffy loan approved"
Thursday, March 27, 2008, Jeff Manning, The Oregonian
http://www.oregonlive.com/printer/printer.ssf?/base/business/120658650589950.xml&coll=7

~~~
Spread Love...

BlueBerry Pick'n
can be found @
ThisCanadian com
~~~
"We, two, form a Multitude" ~ Ovid.
~~~
"Silent Freedom is Freedom Silenced"

favoriteFavorite Flag as abusive Posted 01:35 PM on 03/31/2008
collapse brownshirted See Profile I'm a Fan of brownshirted

i was looking around for other films this guy made; and i found this jewel that clearly warns us against 'rigged markets' over a year ago... kudos to Al jazeera for supporting this film maker.

rigged markets part 1
http://uk.youtube.com/watch?v=8z66kmPRl5Y

rigged markets part 2
http://uk.youtube.com/watch?v=_3H6uEyR66M

favoriteFavorite Flag as abusive Posted 05:29 AM on 04/01/2008
collapse MElmore1965 See Profile I'm a Fan of MElmore1965

The fault lies squarely with those that took out mortgages that were beyond their reach with adjusting rates of interest...for instance Hottie, Dr. Evil and I live in our house as opposed to the one that you live in. We took a low, fixed rate of interest Because of this, we are able to make our payments.

Wait! I just had the most wonderful idea! Why don't you bail out 10 or 20 families with your money? That's what I thought, it's not your responsibility. It's not the government's responsibility either.

favoriteFavorite Flag as abusive Posted 08:43 AM on 03/31/2008
collapse BlueBerryPickN See Profile I'm a Fan of BlueBerryPickN

"The fault lies squarely with those that took out mortgages that were beyond their reach with adjusting rates of interest"

wow, that's really naive, MElmore1965

... um... when the BANKS went out of their way to screw with people the fault lies with the criminals they are...

it might be news to you, but taking advantage of people by FRAUD is a crime. Removing the regulations doesn't make it LESS ETHICAL... just more likely to occur to a wider swath of the General Population.

why is it that people LOVE to blame the victim? its a bloody pathetic, lazy thinking & typical of people who like to talk down the Poor & beatify the white-collar crime.

"Corruption is why we win", eh?
http://www.youtube.com/watch?v=GodbekgFZng

~~~
Spread Love...

BlueBerry Pick'n
can be found @
ThisCanadian com
~~~
"We, two, form a Multitude" ~ Ovid.
~~~
"Silent Freedom is Freedom Silenced"

favoriteFavorite Flag as abusive Posted 07:38 PM on 03/31/2008
collapse brownshirted See Profile I'm a Fan of brownshirted

if the banks kept these loans on their books you might have a point. But since they didn't, and they offer these mortgages knowing that only the buyer has any risk - and not the seller - we end up with a situation of 'moral hazard' i.e., banks getting sloppy. It's true that mortgage buyers should read the fine print but it's also true that the banks who made these loans were knowingly putting the system at risk. Now that the system is falling apart we need to keep in mind that it is the irresponsibility of the banks first that has jeopardized the US financial system and the gullible home owner second. Ultimately, the foolish home owner's contribution to this mess will be forgotten as the entire house of cards comes tumbling down; cc debts, student loan debts, car debts, and the whole panoply of securitization plays and derivatives goes bust - resulting in a much diminished US dollar - and a new depression in America. Those pointing the finger now at hapless sub-prime borrows are soon to find themselves in the soup as well.

favoriteFavorite Flag as abusive Posted 12:12 PM on 03/31/2008
collapse BlueBerryPickN See Profile I'm a Fan of BlueBerryPickN

given that I HAVE WORKED as a consultant for Tier One Canadian banks...

I'd have to say you've no idea what you're talking about BrownShirted.

go look up BASEL II & do your homework.

~~~
Spread Love...

BlueBerry Pick'n
can be found @
ThisCanadian com
~~~
"We, two, form a Multitude" ~ Ovid.
~~~
"Silent Freedom is Freedom Silenced"

favoriteFavorite Flag as abusive Posted 02:37 PM on 04/01/2008
collapse brownshirted See Profile I'm a Fan of brownshirted

The Basil II accords are routinely ignored via off-balance sheet vehicles, off-shore trusts, 'black box' accounting otherwise knows as 'mark-to-model' accounting and unregulated 'dark exchanges.' For this reason, a company like BearStearns can be worth 20 billion one day, and 1 billion the next. It would be nice if the B2 accords were respected and banks held a uniform minimal capital requirement. If they did, we would not have seen the global derivatives trade balloon to just under a 1,000 trillion (quadrillion) in a global economy with a GDP (global domestic product) of approx. 50 trillion. Getting back to the point; those who took out loans and had to live with them - while bankers sold (with a nod to B2) 98% of that loan into the derivatives market - now must deal with the double indignity of having to deal with a faulty loan product that they got stuck with plus an economy in jeopardy due to the cumulative effects of all those banks miselling all those loans.

favoriteFavorite Flag as abusive Posted 05:39 AM on 04/02/2008
collapse sparklenshine See Profile I'm a Fan of sparklenshine

Alec, the info you provided was certainly an eye opener. This credit bubble is swelling and ready to burst. Banks and investment firms are repackaging the same bad debt and selling it to investors. Retraction of debt will result in many having to be bailed out. But, this nonsense has to stop (dont you think?) and a retraction in currency trade is expected during global liquidity shortages.

"The deficits were easy to fund in times of abundant liquidity, but we think the global credit crunch is going to make it a lot harder," he said. "The history of financial crises suggests that it can be dangerous to think 'it's different this time'." We all know that no one learns and we're going to be left in a *snafu*, hehe ;)

The currencies mentioned in the article are taking a nose dive. Investors will have to pay back more valuable currency with less valuable currency (not good). Another item is that "carry trades weaken the target currency, because investors sell what they have borrowed, and convert it into other currencies."

We all know that for some strange people have lost their minds (in general) and one boy genius decided that "free money" was the way to go...for selfish reasons, of course. So...the entire global economy joined this free for all and everyone decided to self destruct at once. This was done on purpose (I think you know that) with no hesitation.

favoriteFavorite Flag as abusive Posted 12:58 PM on 03/30/2008
collapse GrainOSand See Profile I'm a Fan of GrainOSand

Working on the black gas

Switch off your shield
Switch off and feel
I'm working on loving-yeah
Giving you back the good times
Ship it out-out
I'm working for the black gas

[Repeat 1]

We got two tribes
We got the bomb
We got the bomb-yeah
Sock it to me biscuits-now

Are we living in a land
Where sex and horror are the new Gods?
Yeah

When two tribes go to war
A point is all you can score

Frankie Goes to Hollywood 1983

favoriteFavorite Flag as abusive Posted 08:47 PM on 03/29/2008
collapse GrainOSand See Profile I'm a Fan of GrainOSand

It occurs to me that the sub-prime mortgage model worked very much like a pyramid scheme. The diamond level participants who got in early, built a huge down line of these sorts of loans and then sold them off are richer today for the scheme. Those who came in the middle and got out also made money (banks, brokers, and consumers alike). Those who stayed in for the long haul and those who by their definition as "marks" of the scheme got in very late and had little opportunity to get out, they lost big time. Shysters prey on the hopes and dreams of people for a piece of paper to buy them their daily gruel. I like all the fancy cars, and boats, and houses, and exotic getaways, but if to get them I have to defraud I cannot say any of it is worth it. The problem " far too many say it is.

favoriteFavorite Flag as abusive Posted 08:41 PM on 03/29/2008
collapse calirighty See Profile I'm a Fan of calirighty

I don't know about any of you, but out here in California the mortgage crisis was caused by people buying houses they could not afford. And by banks giving loans to people who couldn't afford them. It was NOT the government's fault it was not Bush's fault. It was not Clinton's fault. It was the fault of the two parties involved in the transactions. It doesn't take a genius to figure out that if you make less than $40,000/year that you can't afford a $400,000 house. Also the mortgage crisis was caused by speculators trying to turn a quick profit. But I guess that is also Bush's fault. When will people start taking responsibility for their own actions instead of expecting the government to fix their problems? People here criticize are government all of the time yet the think the Government is the one able to fix these problems. How ironic is that?

favoriteFavorite Flag as abusive Posted 09:04 PM on 03/28/2008
collapse Serena67 See Profile I'm a Fan of Serena67

Your comment is very true as one of the many reasons why our country is in its current economic situation. A co-worker told me of a Ponzi scheme in which a family lost their home, a business owner lost one million dollars, and a husband and wife lost over 3 million dollars trying to make some "quick" money they didn't have to work for. And, as far as I know, I'm pretty sure that our government was not involved in their decisions.

favoriteFavorite Flag as abusive Posted 11:32 PM on 03/28/2008
collapse maggiemae656 See Profile I'm a Fan of maggiemae656

The government has a responsibility to enforce the laws. A lot of people may have been in a tight situation with payments, but now that the job prospects in this country are so dismal, what do you expect? No work, no payments...jobs with less pay, not able to maintain the payments. Congress is fully aware of the job situation in this country--companies leaving town, illegals taking jobs and eroding our wage base, yet has done nothing.

The mortgage companies were forewarned about the quality of the mortgages they were "granting", and chose to go with the quick money. Banks have been issuing mortgages a lot longer than any of us alive today have been buying houses. They have lending models that tell them who is qualified and who isn't. Mortgages are not handed out at the whim of a buyer...the bank 's legal department issues the paperwork.

Yes, it is Bush's fault--he has created an environment where the corporations and the wealthy have been given the opportunity to raid our economy. Personal responsibility ends where the robber barons take charge...and that is where we are today. We are suckers in a grand scheme of people who think they are going to somehow throw this whole mess back in OUR faces...they didn't think this one out very well. Bush is responsible for encouraging an environment of arrogance.

favoriteFavorite Flag as abusive Posted 10:26 PM on 03/28/2008
collapse brownshirted See Profile I'm a Fan of brownshirted

the CA housing bust is just getting started. And it's a bit narrow minded to point the finger at those who accepted the predatory loans... in that the securitization of those loans and the reselling of those loans has destablized the banking system in a way that will collectively punish the entire CA economy and the US economy too. Very quickly, the sub-prime problem will morph into a full blown run on the US dollar (another 50% or more down from current levels) and pointing fingers at sub-prime borrowers will no longer sufficiently frame the issue. The sub-prime victims are just the first group to drown in the tsunami of bad debt crashing the US dollar.

favoriteFavorite Flag as abusive Posted 02:28 PM on 03/29/2008
collapse Mormondude See Profile I'm a Fan of Mormondude

When I saw the title of your post, I was skeptical. I thought to myself, "Can he actually have something valuable to add to the discssion?" My first instinct was not to bother. But I gave you the benefit of the doubt and clicked.

I won't make the same mistake next time!

favoriteFavorite Flag as abusive Posted 06:12 PM on 03/28/2008
collapse PioneerKing See Profile I'm a Fan of PioneerKing

Mr. Baldwin:

Great post!

favoriteFavorite Flag as abusive Posted 04:13 PM on 03/28/2008
collapse PerryWhite See Profile I'm a Fan of PerryWhite

Whew. Good thing that you didn't promise to move to Iceland.

favoriteFavorite Flag as abusive Posted 02:59 PM on 03/28/2008
collapse Investor244 See Profile I'm a Fan of Investor244

Hows your brother Billy?

favoriteFavorite Flag as abusive Posted 04:19 PM on 03/28/2008
collapse brownshirted See Profile I'm a Fan of brownshirted

similar is this film made by the same producer: "Savers versus Speculators" In the Iceland film we learn that the speculators are extracting gains at the expense of workers and savers. This theme is explored more in this new film.

http://uk.youtube.com/watch?v=qxYi2W9vEfw

favoriteFavorite Flag as abusive Posted 02:14 PM on 03/28/2008
collapse PierreLeClerke See Profile I'm a Fan of PierreLeClerke

LOOK. The housing crisis is a symptom of an economic catastrophe of Biblical proportions.
Never before in the history of the Human Condition has there been such a massive shift of wealth from the hands of the multitude to the closed yet bulging pockets of the few. The systematic draining of financial resources has been and continues to enjoy the full cooperation of the setting government with all its agencies in cue. The wholly owned subsidiary the MSM is the information/propaganda branch that has brought the science of mass marketing to it's highest and best use ever. The speed of execution for this shift has been blinding and we have not begun to feel the results of the full impact a broken U.S. consumer will have on the world markets. When we have finally reaped the tempest that unbridled greed has gained us, no soul will be unaffected. Greed is blind and self destructive. So Blood for Oil along with all it's horrors we have assented too by our silence and lack of courage.

April 19th!

favoriteFavorite Flag as abusive Posted 01:30 PM on 03/28/2008
collapse Mormondude See Profile I'm a Fan of Mormondude

"Never before in the history of the Human Condition has there been such a massive shift of wealth from the hands of the multitude to the closed yet bulging pockets of the few."

When someone runs up their credit card, leverages the equity in their home to the max, and then declares bankruptcy, I would say that is perhaps the best example of "multitude" stuffing their pockets full at the expense of the "rich". How you can mistakenly think a bank losing $100k on a bad loan is somehow transfer of money from the poor to the wealthy truly boggles the mind!

favoriteFavorite Flag as abusive Posted 06:16 PM on 03/28/2008
collapse PierreLeClerke See Profile I'm a Fan of PierreLeClerke

2. Immediately offer a $5,000 to $10,000 Government paid direct rebate to all persons and companies purchasing domestically manufactured vehicles getting over 50 miles per gallon minimum. The low end of the direct rebate would be for gas and or hybrid vehicles and the high end $10,000 will be for fully electric and fully non carbon emitting alternative fuel vehicles only.This action alone will bring more investment into the automotive manufacturing sector than has ever been seen before. Demand will increase at historical rates, and manufacturing jobs returned.
3. Immediately offer a $5,000 to $10,000 direct rebate to all persons and companies purchasing and installing domestically manufactured or privately manufactured Alternative energy systems in homes and buildings that reduce the unit consumption of total energy use buy 50% or more. The low end would be for 50% percent energy reductions and the high rate would be for systems achieving over 75% reductions in overall unit energy consumption. This action will immediately create enormous investment into the alternative energy sector and create manufacturing jobs at historical levels.
These are three simple yet Earth changing steps. It's time to move towards a vibrant Green economy.

favoriteFavorite Flag as abusive Posted 01:07 PM on 03/28/2008
collapse tommy_slothrop See Profile I'm a Fan of tommy_slothrop

What do I get for buying a bicycle?

favoriteFavorite Flag as abusive Posted 03:50 PM on 03/28/2008
collapse Rockyman See Profile I'm a Fan of Rockyman

You will get fit and develop bigger leg muscles!

favoriteFavorite Flag as abusive Posted 11:13 AM on 03/30/2008
collapse CanuckforObama See Profile I'm a Fan of CanuckforObama

Here here. Unfortunately, your plan would run afoul of WTO trade law (see how they have us by the balls?).
We should invest in green infrastructure like high speed rail. I read somewhere that the Chinese plan to spend $200 billion on their rail network in the coming years. A similar plan in North America would create jobs and build the infrastructure needed for a cleaner future.

favoriteFavorite Flag as abusive Posted 03:33 PM on 03/28/2008
collapse PierreLeClerke See Profile I'm a Fan of PierreLeClerke

2. Immediately offer a $5,000 to $10,000 Government paid direct rebate to all persons and companies purchasing domestically manufactured vehicles getting over 50 miles per gallon minimum. The low end of the direct rebate would be for gas and or hybrid vehicles and the high end $10,000 will be for fully electric and fully non carbon emitting alternative fuel vehicles only.This action alone will bring more investment into the automotive manufacturing sector than has ever been seen before. Demand will increase at historical rates, and manufacturing jobs returned.
Continued below..

favoriteFavorite Flag as abusive Posted 01:02 PM on 03/28/2008
collapse Overd0g See Profile I'm a Fan of Overd0g

Gee wilikers! It sure is fun to give other people's money away!

favoriteFavorite Flag as abusive Posted 06:18 PM on 03/29/2008
collapse PierreLeClerke See Profile I'm a Fan of PierreLeClerke

This president can begin to effect and reverse the devastating impact his administrations policies have reeked on this economy (the American consumer)TODAY.
1. Immediately release with much fanfare, 10%at a minimum to 20% maximum of the S.P.R. ediately of(Strategic Petroleum Reserve) at $45. per barrel to domestic refiners only. This will lower the price of gas at the pump by at least $1.00 per gallon. It will reduce the price of all heating and electricity costs nationwide as well as force the entire crude market to come down to earth. Every product we touch travels to market, every increase, or decrease in the price of crude has a direct impact on all costs of goods. (Accounting 101)This single act will immediately free funds already in the hands of the American consumer and make them available begin to catch up on other expenses and to spend on consumer goods. Demand fuels economies, not supply. A supply side economy, is and always will be a false economy. We already own this crude and can counter price manipulation via this domestic offer. Ten percent is 70,000,000 barrels. we currently import less than 5 million barrels of OPEC crude per day. It is a complete knowing misrepresentation for those that contend that the suppliers forced to compete would shut off their own income stream. Economics 101.
continued below...

favoriteFavorite Flag as abusive Posted 01:01 PM on 03/28/2008
collapse flatus See Profile I'm a Fan of flatus

"Is it now true that the only way the US can maintain its standard of living is by exporting bogus wars and bad debt to foreign countries?"

No, those aren't the only ways. Thank God there is a third method. All it takes is to simply hatch a new Ponzi scheme every few years. This will not only keep the country afloat (until that bubble bursts) but will make several dozen of our best citizens enough loot to afford two whores a week! Two, count 'em, two! And i'm talking Spitzer class whores, baby!

favoriteFavorite Flag as abusive Posted 12:40 PM on 03/28/2008
collapse PierreLeClerke See Profile I'm a Fan of PierreLeClerke

CITIZENS Join us on April 19th, Patriots Day at 9am Independence Hall Philadelphia
We will grant temporary authority to the Governors of the States Districts and Territories over Federal Agencies and ABOLISH the present Federal Government in accordance with our Constitutional Duty. We will suspend all persons appointed by the Present administration pending new confirmation hearings. We will direct the FBI to immediately begin full investigations into the numerous ongoing criminal activities of this unlawful cartel.
We will hold new publicly funded elections and begin a Constitutional Convention to reaffirm the basic tenants and amend the Constitution to include a ban on all forms of torture.
Enlist five of your most trusted and dedicated fellow Patriots and direct them to do the same. Come to the Convention on April 19th and participate in an historic action that will change the course of our Country and Break the Grip of Greed from the Neck of our Nation!

favoriteFavorite Flag as abusive Posted 12:03 PM on 03/28/2008
collapse maggiemae656 See Profile I'm a Fan of maggiemae656

Who is sponsoring the event, PierreLeClerke?

favoriteFavorite Flag as abusive Posted 06:15 PM on 03/28/2008
collapse HBeachbum See Profile I'm a Fan of HBeachbum

Uh-huh. Let me know how it worked out for all three of you.

favoriteFavorite Flag as abusive Posted 02:01 PM on 03/28/2008
collapse PierreLeClerke See Profile I'm a Fan of PierreLeClerke

So we can count you in our numbers then? Will you be responsible for your own destiny or continue to live life on the sidelines hoping others will sacrifice for your Liberty. How SAD for you and our Nation. Indifference and apathy are the greatest enemies of the Republic. As for me and my house, we will fight tyranny with more than just words.

favoriteFavorite Flag as abusive Posted 02:57 PM on 03/28/2008
collapse skyfish See Profile I'm a Fan of skyfish

Icelanders may be a resourceful bunch, but they are also as a group incredibly short-sighted and greedy. The country's financial system has been corrupted to benefit the fatcats, all facilitated by the right wingers who have been in control of the country for the last decades. They have allowed all industries to be privatized, public enterprises have been sold at fire sale prices to well-connected individuals whose #1 priority is padding their wallets, not the welfare of the country. The corruption and greed and the incestuous relationship between the financial sector and the government has resulted in the mess Icelanders now find themselves in. But I don't think we'll see any serious reform as a result of this meltdown - Icelanders will respond in their usual alcoholic, dysfunctional manner, grab another beer and exclaim that everything will be fine... or "hey, þetta reddast allt..." Or as they say, to quote from a popular Icelandic song , "Mamma borgar..." Mom will pay... (Mom in this case being Icelandic working class taxpayers ....)

favoriteFavorite Flag as abusive Posted 11:44 AM on 03/28/2008