Random Musings On A Wed: The Economy Is Collapsing And BP Fails Again

ONCE again the Mortgage Bankers Association weekly purchase index took a nose-dive. The housing market is in a state of utter collapse. I see the visual proof all around as I drive around Denver. The purchase index dropped 3.1% from the previous week and now stands at its lowest level since 1996. On and unadjusted basis (unadjusted = not statistically manipulated), the purchase index was down 12.7% and 43% from the same week a year ago. Here's the news link: Visual: Wiley Coyote Dropping Off The Cliff

You can draw your own conclusions, but when I see purchase indicators reverting back to 1996 levels, it makes me believe that price levels will follow (think Economics 101 if you had it at a good school). What this means? Think back to what your home (or its equivalent) would have been worth in 1996. That's my next price level target. I have maintained since 2002 that housing prices would revert back to at least 1991 levels (start of the housing bubble). People thought I was nuts back then to make that call - now they fear I may be right (I fear I may be right) More will be revealed as this unfolds...

Are comatose, reality-tv brain-deadened Americas waking up?

I was surprised to wake this morning to discover that 70% of Americans do NOT believe the lies spewing forth from Bernanke and Obama about that economy and that more than 7 out of 10 Americans understand that the economy is tanking:  the public is skeptical of the Obama administration’s stimulus program and wary of more spending, with more than half saying the deficit is “dangerously out of control.”

Here's the article link:  Public Is Stirred Up  It's too bad Obama never took any economics courses.  But after all, this is the same man that 100% of you who comment on this blog would not put in charge of hot dog stand.

But wait, there's more.  80% of those polled believe that the Financial Reform Bill about to be passed and signed into legislation will be absolutely useless.  A full 47% believe the legislation will to do more to protect the banks than consumers.  Here's the link:  More Harmful Obama Legislation  Anyone paying attention to the farce going on in Congress over this legislation is well aware that the original purpose and drafting has been completely turned upside-down (please see the cartoon on the upper right of this blog).  In fact, Ron Paul's legislation to audit the Fed has been almost completely removed. 

Here is a razor's edge analysis of this Farcical Reform Bill by bulldog attorney and former SEC Chairman Harvey Pitt:  All Bad, No Good  That is well worth reading.  If America truly wakes up, DC is going to have a problem.  On the other hand, if you want to see how all this likely unfolds, go re-read Atlas Shrugged.

The BP/White House/Gulf Oil Spill Farce Continues

Not only has Obama put a cover on media access and truth proliferation about what is happening in the Gulf right now, but now BP/Obama are outright lying to us.  For the last two days a BP official has been all over the financial media extolling the virtues and likely success of the latest capping effort.  BP has been running horrifyingly bullshit-filled public relations ads (they should be spending that money helping all those whose lives have been ruined instead of propagating paid masturbation on tv for all to see).  I knew that capping effort was failing when I watched BP stock stock plummet toward the end of the day yesterday. 

And then I wake up to this: 

The plan to start choking off oil gushing into the Gulf of Mexico was suddenly halted as government officials and BP said further analysis must be done Wednesday before critical tests could proceed...No explanation was given for the decision, and no date was set for when testing would begin on the new, tighter-fitting cap BP installed on the blown-out well Monday. (LINK)

No comment huh?  The comments and propaganda sure flowed liberally over the last two days.  At this point we can only assume the worst is going to happen.  What that looks like is anyone's guess, but I will put myself out on a limb and say that this catastrophic event - and which has been completely minimized and downplayed by the guy who couldn't run a hot dog stand - is a game-changer for the United States and likely all of the other countries and Islands surrounding the Gulf/Caribbean.

So Obama continues to fiddle while the Empire is being looted and burned.