Comments on: A Cascading Collapse of International Finance is Underway http://www.dailyreckoning.com.au/international-finance-collapse/2008/10/08/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 10:39:45 -0600 http://wordpress.org/?v=2.8 hourly 1 By: mike http://www.dailyreckoning.com.au/international-finance-collapse/2008/10/08/comment-page-1/#comment-45458 mike Thu, 09 Oct 2008 15:54:45 +0000 http://www.dailyreckoning.com.au/?p=3981#comment-45458 ..wealth is the feeling of ease you acquire when you are comfortable with your place in the pecking order, you can provide for yourself all the comforts you desire and your desires do not exceed your ability to be useful to others...some people "jump ahead in the pecking order" by securing credit and under the discipline of debt repayment....get motivated to improve their abilities...they do this because they are confident.....banks depend on confident people to turn a profit and go about inducing confidence by adjusting the interest rates to accommodate bank profit..which they become very competitive about....inducing the public to the point of mass delusion or irrational exuberance is the dilemma for modern bankers in that once they start the confidence ball rolling, it snowballs nominally to levels which even able confident alpha types grow suspicious of.....you see, a growing nominal value of assets due to banks' generous credit standards induces a false confidence in that without increasing the abilities of the debtor the percieved increase in nominal valuations induces delusions ....at this point, banks have to tighten credit....to weed out the slightly delusional types as an example to the more able types ...which is done at periodic intervals or "waves" if you like.....if banks delay too long and allow these waves to become too large i.e. the ratio of queue jumpers to stand in line types draws too much suspicion...or worse, the queue jumpers rule the roost....then the adjustment process can be very disruptive....... as Dr. Oro Myicin says.." wurst case i've evah zeen!".... ..wealth is the feeling of ease you acquire when you are comfortable with your place in the pecking order, you can provide for yourself all the comforts you desire and your desires do not exceed your ability to be useful to others...some people "jump ahead in the pecking order" by securing credit and under the discipline of debt repayment....get motivated to improve their abilities...they do this because they are confident.....banks depend on confident people to turn a profit and go about inducing confidence by adjusting the interest rates to accommodate bank profit..which they become very competitive about....inducing the public to the point of mass delusion or irrational exuberance is the dilemma for modern bankers in that once they start the confidence ball rolling, it snowballs nominally to levels which even able confident alpha types grow suspicious of.....you see, a growing nominal value of assets due to banks' generous credit standards induces a false confidence in that without increasing the abilities of the debtor the percieved increase in nominal valuations induces delusions ....at this point, banks have to tighten credit....to weed out the slightly delusional types as an example to the more able types ...which is done at periodic intervals or "waves" if you like.....if banks delay too long and allow these waves to become too large i.e. the ratio of queue jumpers to stand in line types draws too much suspicion...or worse, the queue jumpers rule the roost....then the adjustment process can be very disruptive....... as Dr. Oro Myicin says.." wurst case i've evah zeen!"....

]]> By: Angela http://www.dailyreckoning.com.au/international-finance-collapse/2008/10/08/comment-page-1/#comment-45351 Angela Thu, 09 Oct 2008 01:09:56 +0000 http://www.dailyreckoning.com.au/?p=3981#comment-45351 I thought the same thing a while back - Bush will not leave EVER. Worst nightmare. But what will McCain or Obama do (which ever wins) if they have to wait until January to get anything done properly, assuming they know what to do? I thought the same thing a while back - Bush will not leave EVER. Worst nightmare.

But what will McCain or Obama do (which ever wins) if they have to wait until January to get anything done properly, assuming they know what to do?

]]> By: Nick Samios http://www.dailyreckoning.com.au/international-finance-collapse/2008/10/08/comment-page-1/#comment-45200 Nick Samios Wed, 08 Oct 2008 02:42:09 +0000 http://www.dailyreckoning.com.au/?p=3981#comment-45200 Tell me that you think the idea of George W Bush deciding the only thing left to do is to declare himself the USA's first Dictator is implausible. Are Paulson and Bush Sith? Maybe Obi Ben Bernanke is hiding out on Tatooine, waiting for the New Hope? Tell me that you think the idea of George W Bush deciding the only thing left to do is to declare himself the USA's first Dictator is implausible. Are Paulson and Bush Sith? Maybe Obi Ben Bernanke is hiding out on Tatooine, waiting for the New Hope?

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