Interesting Discussion on Credit Crisis
By Joel Burslem, Wednesday, September 17, 2008.[h/t Matrix]
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Submitted by Ron Ares on September 17, 2008 - 1:49pm.
That's a pretty grim countenance, Charlie, in the vid intro frame. His portfolio must have a lot of WAMU, FNMA, FDMC, & Lehman in it.
Submitted by Dave Dugdale on September 22, 2008 - 9:02am.
After watching a video like that, it hard to think any real estate will be moving in the next few months. Perhaps spring will bring better time for the housing market.
Dave
Neighborhood Profile Videos
Submitted by Chien Lee on September 25, 2008 - 7:20am.
Press Release: Incorrect Valuation Is The Cause And Correct Valuation Is The Cure Of The Financial Crisis.
The cause of the financial crisis is the drop in the prices of houses when the supply of houses greatly outstrip the demand for houses. Supply and demand determines the price. Thus, the cause of the financial crisis is the incorrect valuation or the incorrect application of the supply and demand economic model.
The cure of the financial crisis is in finding a correct solution of valuation. The correct solution of value, if it is found, is needed for the solving the short-term problem of the valuation of troubled assets. The solution will provide a long-term and permanent remedy for the prevention and the cure of all the future crises.
References:
1. From Federal Reserve Document:
URL:
http://www.federalreserve.gov/SECRS/2008/January/20080111/R-1305/R-1305_...
From: frboard-web-site@federalreserve.gov on 01/10/2008 02:14:15 PM Subject: Regulation Z Date: Jan 10, 2008 Proposal: Regulation Z - Truth in Lending Document ID: R-1305 Document 1Version: Release Date: 12/18/2007 Name: Hugh Ching Affiliation: Post-Science Institute Category of Commercial Affiliation: Address: City: Fremont State: CA Country: UNITED STATES Zip: 94536 Postal Code:
Comments:
Fed needs a correct solution of valuation. There should be a world-wide search for the correct solution of value. With kind regards, Hugh Ching Post-Science Institute (http://post-science.com)
2. President Bush: "nd with supply exceeding demand, housing prices fell."
3. Patent On Valuation With A Description On US S&L Crisis:
"Quantitative Supply And Demand Model Based On Infinite Spreadsheet"
United States Patent 6078901
Abstract:
Calculating devices for non-arbitrary price determination and rational decision making. The historical problem of value has been solved in this invention. The solution represents the first major breakthrough in social science. Value is defined as the sum total of all the future benefits and losses. An infinite spreadsheet establishes a deterministic relationship--described by an equal number of equations and unknowns--between the price and all the factors affecting the price in an expected time space extending from now to the infinite future. The infinite spreadsheet expands the current finite spreadsheet to infinity. It does not assume a resale price in the determination of the price. The current finite spreadsheet for planning and decision making should not be allowed because it hides material information, namely, the future beyond the finite time. The scientific method based on empirical verification is not always applicable in social science. In particular, the solution to price cannot be empirically verified because deterministic sets of data can never be collected when the infinite future, which will never arrive, is involved. In order to carry the calculation to infinity, the inputs are expressed as approximate time-invariant variables. Since the present price depends on the future price, the calculation is done in a time-reversed fashion. The law of supply and demand, or the general economic equilibrium analysis, emphasizes the spatial dependence of the price and has neglected the importance of the temporal consideration, which is investigated in detail in the infinite spreadsheet. A quantitative supply and demand model for multiple commodities with similar functionality and with a uniform price can be constructed by summing over the quantities whose various prices are determined individually by the infinite spreadsheet. In turn, the quantitative model can be used to obtain the inputs for the infinite spreadsheet, with which it forms a new quantitative foundation for economics and ushers in a new age of social science.
4. URL:
http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL...
Patent 6,078,901
http://www.infinitespreadsheet.com
Web based valuation systems for deterministic price determination based on the Patent 6,078,901.
http://www.post-science.com
Descriptions of the solution to the financial crisis based on valuation.