theworldaccordingtochris

so markets are up, this is a good thing right?  maybe.  i’m not buying that we’ve bottom just yet for a few reasons:

•  warren buffet wants to insure the municipal bonds.  this is not the same as the mortgage backed securities that are threatening trigger big losses in the markets
• some bond auctions have failed, leading to interest rates of 20%+
• mortage rates have actually gone up in the past few months, while the fed cuts the target rate
• housing prices have not stablized

what does this all mean?  i’m not sure, but perhaps no one is willing to lend money these days anymore.  why?  maybe they don’t have any money left to lend?  maybe they don’t have transparency on what they are lending for.  read “when genius failed”.  the similarities to 1997 is eerie.