Deleverage NOW … or “die”!
The real problem which we face is long time known …
but nobody acts … stupid-no-brain-over-leveraging …
Whether we talk about SIVs, banks, hedge funds or even consumers or home owners …
ALL of them leverage until NOBODY can help. Greedy banks lure us in EVERY single day …
Whatever you needed or desired … credit WAS available … fancy car, new home … newest gadgets … just shop ’til you drop
Now … they drop … ALL … consumers, home owners, banks, hedge funds … ALL!!!
And whoever talks about the bottom … look at the leverage … we are at THE START, not the end of the bad things!
Just think … house prices tripled easily within the last 10 years … why should it not be possible seeing them drop by 50%???
But the usual hedge fund, SIV or bank speculated in these markets with a 10 times, 20 times or sometimes more than 30 times LEVERAGE!!!
Means … prices go down only 10% … and they are OUT OF BUSINESS
AUTSCH!!!
We might … and I’m quite sure, we WILL … see the biggest crash in history …
It will wipe out a lot of people … and most of them will just face, what they deserve …
Revert to the mean
SO … PLEASE deleverage NOW!!!
