{"id":5354,"date":"2008-10-31T11:08:52","date_gmt":"2008-10-31T18:08:52","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=5354"},"modified":"2008-10-31T11:08:52","modified_gmt":"2008-10-31T18:08:52","slug":"do-you-like-a-good-scary-story-read-this-one-anyway","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5354\/do-you-like-a-good-scary-story-read-this-one-anyway\/","title":{"rendered":"Do You Like a Good Scary Story? Read This One Anyway…"},"content":{"rendered":"

I am not, by any stretch, a conspiracy person.\u00a0 I think the probability of a conspiracy succeeding is inversely tied to the number of people involved.\u00a0 That makes me especially dubious of government conspiracies.\u00a0 The bottom line for me is this: people are smart, groups are dumb.\u00a0 If you want to understand something just follow the money.<\/p>\n

But I am getting a little scared.<\/p>\n

You may have heard about the various bailouts and financial manipulations the government is engaged in lately.\u00a0 It has been in the news.\u00a0 There was a $750 billion bailout, followed by another $500+ billion bailout.\u00a0 A number of investment banking firms were bailed out (and, curiously, some were not) while AIG continues to be handed money.\u00a0 Banks are being force fed money and there are more stimulus packages on the way.\u00a0 All done, we are told, to save us from a world economic collapse.<\/p>\n

But is it true?\u00a0 This week the Fed lowered the fed funds rate… again.\u00a0 Lowering the rate didn’t do a damn thing a month ago, so why are they trying again?\u00a0 Here’s a better question: Why are they lowering the rate at all?\u00a0 Lowering the fed funds rate effectively lowers the “cost” of money.\u00a0 When do you lower the cost of something?\u00a0 When their is a demand problem.\u00a0 From everything you have read, do we have a demand problem or a supply problem?\u00a0 We are being told that everyone needs money and no one will lend it.\u00a0 So why in the world would you lower<\/em> the price of money?<\/p>\n

Let’s leave that alone for a minute and move on to the credit crunch.\u00a0 As I mentioned previously, the world economic collapse is precipitously close and liquidity is the problem.\u00a0 “No one is lending money.”\u00a0 “Commercial paper has dried up.”\u00a0 “Our financial system is grinding to a halt because cash is being hoarded.”\u00a0 I have not taken the time to actually go out and find these headlines and link to them.\u00a0 I trust this is now such common wisdom you will take it on face value.\u00a0 But take a look at the following graph:<\/p>\n

\"Interbank<\/a><\/p>\n

That represents the loans, in Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

I am not, by any stretch, a conspiracy person.\u00a0 I think the probability of a conspiracy succeeding is inversely tied to the number of people involved.\u00a0 That makes me especially dubious of government conspiracies.\u00a0 The bottom line for me is this: people are smart, groups are dumb.\u00a0 If you want to understand something just follow […]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[251],"tags":[],"class_list":{"0":"post-5354","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-big-mother","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":4742,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4742\/a-quick-primer-on-liberal-conservative-economic-theory\/","url_meta":{"origin":5354,"position":0},"title":"A Quick Primer on Liberal & Conservative Economic Theory","author":"Sean Purcell","date":"September 30, 2008","format":false,"excerpt":"We may or may not be in favor of the bailout.\u00a0 We may or may not fully understand what the bailout will or won't do.\u00a0 We may or may not be any smarter than the politicians who (in my humble opinion) don't have a clue what the bailout will or\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4828,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4828\/and-now-no-reason-to-root-at-all\/","url_meta":{"origin":5354,"position":1},"title":"And Now, No Reason to Root At All","author":"Sean Purcell","date":"October 6, 2008","format":false,"excerpt":"Last week, while watching the House contort itself in a self-serving round of navel-gazing over the bailout package, I pondered two connotations of their disconnect with the populace.\u00a0 Taken together they are a question really, that looks at the motivation behind politicians' decisions; the metaphysical understanding of a Representative if\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5786,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5786\/rcom-finally-a-bailout-that-interests-me\/","url_meta":{"origin":5354,"position":2},"title":"R.com – Finally a bailout that interests me… ;-)","author":"Eric Blackwell","date":"November 23, 2008","format":false,"excerpt":"I am not a fan of the recent bailouts. (Too many reasons...Let's don't go there.) But Russell Shaw put forth a bailout plan that has intrigued me. You see...the stock market being low has its advantages. Now's the time to buy back REALTOR.com, NAR. You should be able to get\u2026","rel":"","context":"In "Realty Reality"","block_context":{"text":"Realty Reality","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/realty-reality\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4709,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4709\/an-update-on-the-bailout\/","url_meta":{"origin":5354,"position":3},"title":"An Update on the Bailout….","author":"Tom Vanderwell","date":"September 29, 2008","format":false,"excerpt":"and yes, after doing some more reading on it, I do still consider it a bailout. I\u2019m going to put a copy of a post that Yves at Naked Capitalism wrote in italics and then my comments will be interspersed in bold print and then I\u2019ve got more thoughts at\u2026","rel":"","context":"In "Egoism in Action"","block_context":{"text":"Egoism in Action","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/egoism-in-action\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4714,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4714\/update-on-the-bailout-part-ii\/","url_meta":{"origin":5354,"position":4},"title":"Update on the Bailout – Part II","author":"Tom Vanderwell","date":"September 29, 2008","format":false,"excerpt":"It Failed. I'd like to consider this an open thread - now what do \"we\" do? I'll throw some ideas out there, but I want to hear from others first. Tom","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4692,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4692\/promoting-affordable-housing\/","url_meta":{"origin":5354,"position":5},"title":"Promoting Affordable Housing","author":"Brian Brady","date":"September 27, 2008","format":false,"excerpt":"I didn't believe it when I read it; the bailout bill is \"earmarked\" and ACORN is one of the beneficiaries of the largesse. \u00a0 ACORN may control up to 20% of the $700 billion proffered by the Bush\/Obama Bailout Plan. ACORN?\u00a0 Are you kidding me?\u00a0 THIS is what ACORN really\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=5354"}],"version-history":[{"count":8,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5354\/revisions"}],"predecessor-version":[{"id":5364,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5354\/revisions\/5364"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=5354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=5354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=5354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}