Bush tax cut for the rich and proceeds from Iraq lost in bad loans – greed of the wealthy creates the biggest financial meltdown
Peter Oberois
Oct. 24, 2007

Still they talk about flipping without flopping. Still they want to fool the common people and sell mortgages to those who can never afford the homes in the first place. They have taken their scam to the emerging countries like India and China now.

Where did all that money come from? Federal Reserve lowered the rates from 2001 onwards but still where did the rich get all that money to loan to the common people promising them heaven?

The Merrill loss of 8 billion dollars represents the lost hope of the rich in becoming richer. But guess where did all that money come from? It was tax cut for the rich by Bush. It was also the proceeds from Iraq. Some contractors made a lot of money from Iraq. It is not the Iraqis who paid them. It was the Government that bought their services.

In essence all the money came from the US budget deficit.

Now all is getting lost in bad loans. As the credit bubble collapses and the financial meltdown continues, the money made from increasing budget deficit will disappear. The bloodbath for hedge funds and private equity funds has just started. Wait what happens when the commodity markets take a bath and oil drops 40% in the next year.

The first casualty from the financial meltdown – Bank of America decides massive layoff and fires its head of Global Corporate and Investment Banking unit
Sue Brown
While the whole world is busy thinking about iPhones and iPod., the financial meltdown and debt servicing load of the economy is imploding. The implosion is severe and has the potential of a massive collapse in fianncial systems simi9lar to 1907.
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Median home price dropped 4.2% from a year earlier – analytics and quantitative model show 30% price retraction on the cards if economy tanks into recession
Marla Guthrie
Existing-home sales fell 8% in September amid continued problems in the mortgage market.. The median home price dropped 4.2% from a year earlier. The single-family sales hitting their lowest sales pace in nearly 10 years.
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With Boeing's negative guidance, the stock market is in real trouble – when the leader succumbs so goes the battle
Karen Zuba
Based on historical data, before past major recessions and stock market bear markets, prospering companies started falling four months before major market crack and ten months before the R word was common in the main street.
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Bush tax cut for the rich and proceeds from Iraq lost in bad loans – greed of the wealthy creates the biggest financial meltdown
Peter Oberois
Still they talk about flipping without flopping. Still they want to fool the common people and sell mortgages to those who can never afford the homes in the first place. They have taken their scam to the emerging countries like India and China now.
READ MORE>>

Stock market realizes the depth of credit related trouble from Merrill results and possibility of real estate depression
Sam Adelton
The Merrill result just confirms that we are looking at the tip of the iceberg as far as the credit related trouble is concerned. A sharp September drop in existing home sales confirmed the deep depression in residential real estate.
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UPS guidance, residential real estate price fall, rising bankruptcies – all point to a nasty recession – why is stock market so confident?
Alex Brown
UPS guidance, residential real estate price fall, rising bankruptcies – all point to a nasty recession – why is stock market so confident?
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