{"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_post_was_ever_published":false,"_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":""},"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":4692,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4692\/promoting-affordable-housing\/","url_meta":{"origin":5354,"position":0},"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":[]},{"id":4729,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4729\/toms-top-ten-reasons-he-doesnt-like-the-bailout\/","url_meta":{"origin":5354,"position":1},"title":"Tom’s Top Ten Reasons He Doesn’t Like the Bailout….","author":"Tom Vanderwell","date":"September 30, 2008","format":false,"excerpt":"Because a government intervention the financial systems rarely works well. Because it fails to acknowledge the fundamental shift that is occurring in our society as we move from being \"overleveraged\" to using credit responsibly. Because Nancy Pelosi likes it. Because no one has been able to prove that by buying\u2026","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":4588,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4588\/wall-street-bailout-plan-to-include-more-than-bad-mortgage-debt-feds-to-absorb-unpaid-bar-bets-inadvertently-laundered-postage-stamps-unredeemed-soda-cans-and-insufficient-tooth-fairy-disbursements\/","url_meta":{"origin":5354,"position":2},"title":"Wall Street bailout plan to include more than bad mortgage debt: Feds to absorb unpaid bar bets, inadvertently laundered postage stamps, unredeemed soda cans and insufficient tooth-fairy disbursements","author":"Greg Swann","date":"September 22, 2008","format":false,"excerpt":"Totally absurd? Think twice:In the dark of night over the weekend when most people were snoozing, the Treasury dramatically expanded its bailout plan to include buying student loans, car loans, credit card debt and any other \"troubled\" assets held by banks. The changes, which were included in draft language that\u2026","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":4742,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4742\/a-quick-primer-on-liberal-conservative-economic-theory\/","url_meta":{"origin":5354,"position":3},"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":10161,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10161\/atlas-twitched\/","url_meta":{"origin":5354,"position":4},"title":"Atlas Twitched?","author":"Scott Cowan","date":"October 22, 2009","format":false,"excerpt":"In effort to stem public outcry the government today announced that they were limiting the salaries of the top 175 executives for companies that have received federal bailout money. Will this be the event that causes the best and brightest our country has to stop being exactly what we need\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10197,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10197\/you-cant-drink-yourself-sober\/","url_meta":{"origin":5354,"position":5},"title":"You Can’t Drink Yourself Sober…..","author":"Tom Vanderwell","date":"October 31, 2009","format":false,"excerpt":"Technorati Tags: First Time Home Buyer Tax Credit, Government Bailout","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":[]}],"_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}]}}