SSDD – But Worse?

Let’s just get right to it shall we…

You really need to go no farther than this Already Bought A 3D LCD In Anticipation Of QE “Instarefi” 1.999? You May Want To Consider A Refund  “Earlier today we noted that the biggest buzz on Wall Street is the recent suggestion by MS and ML’s Harley Bassman that the GSEs should provide some form of autorefi program to take borrowers to market rates. As this would impact a vast majority of the 37 million of mortgages outstanding backed by the government, not only would this housing stimulus have a huge impact on consumption appetites, but it would be a political coup as all of a sudden the administration would find tens of millions of giddy homeowners who are paying far less monthly, and quite satisfied with the way Obama has handled things.” QEII is coming in one form or another. Just the buzz form this one stopped a mega tumble in it’s tracks today.

The ramifications of this? Well, leave that up to Denninger in “Instant Refi”? Watch The Consequences… “
If I’m right about this – and remember - this is speculation – then some of those note-holders are about to get a truly ugly surprise, and we’re also about to be treated to whether Treasury’s alleged “promise” to back them was worth the breath that Geithner spent to mouth it.” Someone’s gonna take a bath – oops – wait a minute – no one takes a bath cause the Fed prints the money and the BD’s launder it to the Treasury and then WE ALL END UP WITH THE TAB! Just like everything else. Sure Barry, we’ll be glad to get the tab for that as well. Whet the hell, did your team of brilliant economists come up with this scam as well? Will it be a wash to you and me? Hell no, just more distribution of wealth furthering this administrations socialist agenda. Better hope this does not go thru before the elections (you know it will).

But if you insist on learning more about reality, please read on.
What the hell, foreclosures, shadow inventory, hoses that are sidelined – no problems in the RE market at all. Housing Bubble will Not be Reblown; Foreclosures Increase in 154 of 206 Metro Areas with Population Over 200,000  or this California Approaches “Fiscal Meltdown”; Schwarzenegger Declares Fiscal Emergency; Fort Worth Texas Ponders Scrapping Defined Benefit Pension Plans Yup, here we go with the IOU’s again. I’m positive that more sheeple a re waking up now (see funds flow report below). Question is when and how does all this madness end?

On Bill Gross’ recent column you have Mish’s take here Bill Gross Ponders “Deep Demographic Doo-Doo” where Mish points out, “Here is the key sentence “The New Normal will not be aided nor abetted by a slower-growing population nor by cyclical policy errors that thrust Keynesian consumption remedies on a declining consumer base.“” and Denninger’s here See, I Told You So (Again) – Deficits where Karl posts, “Now, after nearly $5 trillion flushed down your economic toilet, after your firm’s “customers” profited tremendously from that “shake” while the rest of us got the drips that came from it (and we didn’t like the taste), now, when the Keynesian fantasy games are threatening to run into a brick wall and destroy the budgetary capacity of the government – NOW you call for a change in course.” LMAO, I love it when Karl gets emotional.

Prag Cap brings a link to a chart in a post that should be titled Fugly and not Ugly from John Hussman