• Again$t Spin Doctors - Tracking the World Great Depression of 2005-2006, the Money File$

• Worried About the Market? -- Be Ready to Act Fast, Bill Fleckenstein

• The Housing Bubble Will Probably Burst, John Mauldin

• Lenders Lost on Laurel Woods, David Wren

• Global Imbalances Watch, Doug Noland

• The Greenspan Legacy, Adam Hamilton

Paradise Lost
Ole Bear, Editor's Commentary

As a teenager in 10th Grade at North Kansas High School I was faced with the laborious task of having to read John Milton's Paradise Lost. If you want to boil this 17th Century Epic Poem down to an operatic nutshell here is the link. It is a Biblical allegory of sorts, and written in 17th English, which is pretty hard to understand near Four Centuries Later. This was not in my view, Loves Labour's Lost. It was a complete waste of time. Reading John Milton is about as interesting as reading Herman Melville from American literature, and if anyone has ever gotten through the complete works of each of these authors, they deserve The Red Bad of Courage, which is a far greater work, in our view. But, we also think that Stephen Foster to be a better composer than either John Williams or James Horner, since Foster had less previous music to steal from. Williams and Horner? Get Real -- movie score composers. Or rent Titanic and Superman.

The Money Files linked above has some nice varied essays, which should entertain our readers over several days. Of course, I cannot read Fleckenstein but only occasionally. Why? -- because he's so blasted funny in the financial markets... that when I read him and I go into Delusions of being on a Marijuana, Cherry Flavored Morphine, or LSD high, I laugh so hard I crack ribs, especially on the right side of my torso. It takes 'em too long to heal back! Mauldin, who generally writes some great stuff, has some nice charts and grafts correlating this to that, the which to the other, and the what to the why not for. Fourteen pages of interesting read, if you want to believe in Housing Bubbles Bursting, and the who, how, when, why, and what... Nope, I am not taking issue with this essay at all! It is just that folks who stick their necks out on the Howsing Bubble Issue generally get their head handed back to 'em on a silver platter, much like the Biblical Allegory of Salome with John the Baptist from Greenspan [Bernanke, now mayhaps?]. We commend Mauldin for the essay, and a good read with pretty charts. However, I don't know of a mortgage banker, loan broker or shark, or a S&L or Credit Union Boss in the USA who will buy Mauldin's essay, because they have their own cover-up to do... much like what's been going on in Washington for the past several decades of stealing our money through the printing press, and all those foul smelling pork production farms all inside the foul smelling Beltway. If a lending enterprise cannot make a new loan, it is going to go broke. When folks pay off loans, lending enterprises basically see elephants [doing nasty stuff] in their pajamas, because that's deflationary. Making new loans makes monkeys out of pajamas [inflationary].

It appears though, that Laurel Woods is the true Paradise Lost. Maybe I err? To err is human. To forgive divine. Please forgive me, this is Paradise Regained. Let's rephrase that! -- To err is human, to forgive... a banana split!~

From David Wren's essay on Laurel Woods here's the opener:

U.S. government-chartered mortgage companies Fannie Mae and Freddie Mac have foreclosed on at least 46 homes worth $4 million in the Laurel Woods neighborhood since 2002, according to an analysis of real estate data by The Sun News.

In 29 of the foreclosures, Fannie Mae and Freddie Mac resold the homes within months for less than half of their mortgage value. Six of the homes were resold for between 50 percent and 60 percent of their mortgage value, and the remaining 11 homes haven't sold.

The track record in Laurel Woods is a microcosm of the dangers Fannie Mae and Freddie Mac face when they rely on largely unregulated finance companies to ensure that borrowers are qualified for, and can repay, the loans they get.

From the gist of the essay, Laurel Woods is a manufactured home community and subdivision, although the essay dudn't come right out and say that, but it does say that at the top of html weblink at The Sun News.

Just imagine that if the GSE fat cats are losing just $4 million on 46 manufactured homes in Laurel Woods South Carolina... just how fowl and rank the GSE portfolio of ABS and MBS really is across the Continental Divide, and all points in-between! Geographically, methinks that includes Columbia, Missouri. But, I suspect there are some geo profs at both Harvard and Yale who would place Columbia, Missouri in the Heart of the Brazilian Amazon Rain Forest, phone home to Forrest Gump, ask for Bubba Gump Shrimp, and wudn't know where the Hell Bayou Le Batre was in Alabama, near Mobile.

Fast Doug Noland over at Prudentbear penned another Credit Bubble Bulletin with a front runner housing chart that will blow your socks off. The title of this week's feed is Global Imbalances Watch. If you cannot ferret through the top of the essay stats and spats, skip to the last section for justification, support, and correlation to financial markets and the paper money fraud.

Speaking of Maestros, our good buddy, Adam Hamilton, over at Zeal penned a pithy essay called The Greenspan Legacy, as noted above. Adam's pen is only about 3,708 words or so, and Hamilton always has great charts that you can actually understand, if one isn't too keen on Technical Analysis on Wall Street. Although the essay has been posted at Bill Murphy's Le Metropole Cafe and St. Elsewhere, like Gold-Eagle, our link is directly to the horses's mouth. If you find, Dear Reader, Mr. Hamilton's observations that a central banking system is communistic, I have the insight, credentials, and links to back-up this tenet of The Communist Manifesto written by Marx and Engels. An American Republic with a Communist Central Banking System! That's why I always say that Woodrow Wilson was a Traitor to the US Consititution and this Republic. He was, is, and always will be! American Presidents tend not to uphold their Oaths of Office defending the Constitution of the United States and the Bill of Rights. When we look at the Bible, there are burning bushes in the wilderness, aren't there? -- as signs from Heaven.

When push comes to shove... real estate will be king.

It is just the price you all paid for it, that may be the Sword of Damocles swingin' over your head? Swish....... Swish......... Swish..............................

Welcome to the Communist Central Federal Reserve Bank Fraud under Ben Bernanke on the First of February, 2006.
I expect a most bumpy ride.
Fasten your seat belts!

The question is: Would anyone vote for Traitor Woodrow Wilson again?
.... the man who approved a Communist Central Federal Reserve Bank Fraud in an American Republic?

Now think about burning bushes! -- and The Bible.

Greetings to our readers in 2006!

Ole Bear, Editor
Columbia, Missouri

© 2006 Realty Reality

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