The Fed now has no recourse to stimulate the economy. Just like in the TV drama ‘ER’, the crash cart was charged to 0.25 point cuts and 0.75 emergency cuts. Now, look at what is happening …
Runaway Inflation has seized the consumer economy. Now, the economic meltdown accelerates.
What has happened to my country? 
Imagine successfully finding all the pieces to a broken porcelain cup and putting the cup back together.
Then imagine someone driving a dump truck over that porcelain cup, and asking you to put the cup back together again — FASTER this time. He then puts a gun to your head and starts the egg timer.
That’s what credit derivatives of credit derivatives are.
Rich people are just too funny.
Something strange happening in the economy as the commercial real estate paper is becoming worthless. Why? If the stores continue to close, then the economy of shipping and fulfillment will collapse.
Stay tuned…
I just listened to a Wall Street executive try to explain his fancy credit schemes.
He didn’t understand it himself.
I just nodded my head, excused myself, ran to the nearest restroom and vomitted.
He is paid millions, and I am paid next to nothing,
but I understand the problem more than he does.
Now, imagine someone at a nuclear control panel who doesn’t know what he is doing.
On the same day that Roger Clemens testified on performance enhancing drugs, Ben Bernanke testified that he would provide a plan to deal with the pending credit card crisis at the behest of a legislator (I forgot his name and do not care).
The point is: the report or plan is sorta due today … Opening Day.
It will likely be delayed as all the rules are about to change on Wall Street.
Unfortunate.
Three witches enter.
Job Witch: Ahh. My wage is half it used to be.
Money Witch: My paper is worthless.
House Witch: My home is not my home. Tis my burden now.
All Witches: Double Double Toil and Trouble Dollar Burn and Pop the Bubble.
Job Witch: Send my position overseas,
ignore my tireless plees, for prosterity,
and other sundries irrelevant.
All Witches: Double Double Toil and Trouble Dollar Burn and Pop the Bubble.
Money Witch: Make me cheap, pricey to make,
leave shocked consumers, in my wake,
print to death, my soul you take,
as much as you need.
All Witches: Double Double Toil and Trouble Dollar Burn and Pop the Bubble.
House Witch: Bring the crooked to my hearth,
show them riches from the start,
job not needed, tax-free cash,
hide the earnings,
in your stash.
All Witches: Double Double Toil and Trouble Dollar Burn and Pop the Bubble.
Shhhh. Hear the crackle. Hear the burn. Hear Uncle Sam’s stomach turn. Shhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh. POP!
Yeah. I said it.
Private Equity Firms. Mutual Funds. Hedge Funds. Federal Reserve. You can call them whatever you want. They are all banking cartels.
I just read this post on Austrian Economists.
http://austrianeconomists.typepad.com/weblog/2007/12/did-the-gold-st.html
Mismanagement Gold Standard Helped Cause the Great Depression?
Yes, But the Root Cause Was Antitrust.
History also remembers that the Great Depression was an antitrust problem that started by real estate crisis in Florida and set off a chain reaction nationwide. Lack of antitrust legislation and the era of the robber barons produced a class of Americans that possessed 90% of the countries wealth.
Upon accumulation of all this wealth, the robber barons exercised conventional wisdom abject stupidity in the management of commodities such as gold, silver, oil …. well, just pick any commodity, and chances are they mismanaged it. ^_^ The few families who got out of the market early survived. You may have heard of some of them: Rockefeller, Vanderbilt.
What is all this antitrust nonsense I am talking about?
It may be hard to remember, but in the U.S. there were actually laws (antitrust laws) that clearly stated that your bank could not do your taxes, your tax preparer could not provide your insurance, and your insurance company could not manage your mutual funds.
Most of those laws were repealed and now you are seeing the results.
Sadly, per Brooding Issue #1 in my previous post, I see massive bank failures ahead.
It appears that the giant private equity firms (who bought real estate at the top of the market) will fall and come crashing down crushing all the little people underneath. (Just like in Florida in 1929).
Currency Collapse May Be Eminent
If we are lucky, we will experience an orderly currency collapse. However, two smart guys named Bill Gates and Warren Buffet fear a disorderly fall of U.S. dollar, which will turn the Great Depression into a discussion about happier times.
… つづく
Brooding about the following thoughts:
All these figments of my imagination. right?
…
EDIT: Probably. It’s just a bad dream.
I’ll wake up soon. I’m not worried at all. No, really.
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