And cnn's saying that six more small regional banks were shut down today, bringing the '09 total to 51 -- more than twice as many in all of '08... Don't they usually wait until Friday p.m. to do this stuff? Does this mean there could be more shutdowns tomorrow?
Who wants a very stiff martini?
Sager at some point this is not going to be pretty. I saw Obama today on CNBC & something just didn't seem good to me in the way he talked. I keep preparing for what ever is to come down.
Sager at some point this is not going to be pretty. I saw Obama today on CNBC & something just didn't seem good to me in the way he talked. I keep preparing for what ever is to come down.
The resetting of over a million adjustable rate mortgages, in the next four years, is what's coming.
Seattle Times:
"Shirley Breitmaier's mortgage payment started out at $98 when she refinanced her three-bedroom home in Galt, Calif., in 2007. The 73-year-old widow may see it jump to $3,500 a month in two years.
http://seattletimes.nwsource.com/html/realestate/2009389569_optionarms28...
Gents,
The problem with all this, if correct, is timing and relativity. The Dollar was up two Euros today, a big move, even though the Euro's fall was on the back of the US's fall following the US's (un)employment figures...errm, go figure!
DavidC
Shaken and stirred...
I find all this stuff to be sobering.
There is little comfort in validation of dire forecasts. We all knew this was coming, and there is absolutely no excuse why all of us should not be ready when it really comes time to close the storm shutters.
...Suppose I aught to see what "Homestead" has posted up on the recipes thread.
SagerXX - thanks for this post, this was a big event. This was obviously planned and agreed to by many central banks some time back. That is a major problem in that we, as a nation, never knew what was really going on so, we just watch things unfold.
The central banks are consolidating into three different global regions, turfs if you will, in co-operating in a bigger cartel.
The economy is collapsing but it's just too slow to watch it move. This development comes at the heels of another announcement:
The State Budget Crisis Peaked on June 30th - Midnight, June 30th marked the end of fiscal 2009 for 46 states in the US, and various state constitutions require 45 of 'em to have a final budget by July 1st.
Thus, 10 states are facing a true blue crisis - California, Connecticut, Pennsylvania, North Carolina, Delaware, Illinois, Ohio, Indiana, Mississippi and Arizona did not have budgets in hand on the eve of the new fiscal year.
Bumpy road ahead, good that we are preparing.
Larry
Bumpy road ahead, good that we are preparing.
Yep. Prep is moving from somewhere between "hobby" & "avocation" in terms of the amount of my free (non-working) time I spend on it to somewhere between "second job" and "first job".
On the positive side -- and I insist on a positive side -- I'm focusing on the pleasure of creating a Next World that looks like the world I want to live in. I have the power. Using it!
Viva -- Sager
SagerXXX, Creating a new world, is the way I view it too. Keeps me sane, and there is reason to believe that a lot of the necessary changes will be positive all around, for everybody.
This isn't about the dollar per se, but a great interview, with a few of my favorite people:
Bathtub Shaped Recovery:
And the longer the bottom of the U, the longer the financial bath we all wind up taking, which brings us to Simon Johnson's favorite shape for describing the recovery...
SIMON JOHNSON: The bathtub.
PAUL SOLMAN: A U so long it might as well be an L.
SIMON JOHNSON: You go in. You stay in. The sides are slippery. You know, maybe there's some bumpy stuff in the bottom, but you don't come out of the bathtub for a long time.
http://www.pbs.org/newshour/bb/business/jan-june09/econshape_06-23.html
And cnn's saying that six more small regional banks were shut down today, bringing the '09 total to 51 -- more than twice as many in all of '08... Don't they usually wait until Friday p.m. to do this stuff? Does this mean there could be more shutdowns tomorrow?
Make that seven, and $314 million in FDIC cash:
www.money.cnn.com/2009/07/02/news/companies/bank_failure/index.htm
Bumpy road ahead, good that we are preparing.
Yep. Prep is moving from somewhere between "hobby" & "avocation" in terms of the amount of my free (non-working) time I spend on it to somewhere between "second job" and "first job".
On the positive side -- and I insist on a positive side -- I'm focusing on the pleasure of creating a Next World that looks like the world I want to live in. I have the power. Using it!
Viva -- Sager
SagerXX,
It's another click of the economic wratchet. Good post and good optimism.
Aaron - you nailed it. No reason to whine as we can't say we don't know it is comin'. The fan is definately a different shade of brown!
Coop
I guess with independance day tomorrow, this stuff has real resonance with you folks in the US. For the rest of us, or at least those with their eyes open look on at the goings on in the US and the rest of the world with disbelief. As said above, "another click on the economic wrachet"
britinbe
Oh, but you guys are forgetting the CNBC logic: the dollar will never even considerably loose value, let alone collapse, because there's no where else to go. This bit of conventional wisdom is about to be seriously tested. There's no love lost for the good ol' US of A in the world. Behind the scenes right now, IMO, everyone and his uncle is frantically planning to dump the dollar, but at a time and place least harmful to them. Logic and sobriety would add, "Why wouldn't they be?"
I guess with independance day tomorrow, this stuff has real resonance with you folks in the US. For the rest of us, or at least those with their eyes open look on at the goings on in the US and the rest of the world with disbelief. As said above, "another click on the economic wrachet"
britinbe
Well I just talked to a pretty smart Brit yesterday & he was telling me it was all us Yanks fault with the economic collapse LOL. What surprised me was his talk about what they had to endure coming & going out of England (retinal scan, face scan & both hands fingerprinted). Is this true? He said No way to make money in England any more except possibly buying & renting properties because they are real cheap at the moment.
Happy 4th
!
Bathtub Shaped Recovery:
And the longer the bottom of the U, the longer the financial bath we all wind up taking, which brings us to Simon Johnson's favorite shape for describing the recovery...
SIMON JOHNSON: The bathtub.
PAUL SOLMAN: A U so long it might as well be an L.
SIMON JOHNSON: You go in. You stay in. The sides are slippery. You know, maybe there's some bumpy stuff in the bottom, but you don't come out of the bathtub for a long time.
Here's hoping we folks w/foresight can come out of the bathtub relaxed (if prune-fingered from having been in there so darn long).
Behind the scenes right now, IMO, everyone and his uncle is frantically planning to dump the dollar, but at a time and place least harmful to them. Logic and sobriety would add, "Why wouldn't they be?"
Concur. The dollar dump could be the event that (20 years hence) is generally-agreed-upon as "The" SHTF moment.
Ack. This is all freakin' me out. Gotta get over to the Community Building thread and post an update on my day at the homestead (it was a good one)...
Viva -- Sager
Maybe another blow to come...Lew Rockwell has source in Switzerland who wrote the following today:
There are rumours in Geneva this weekend that the Swiss government is on the edge of breaking off diplomatic relations with the US, over the harassment Swiss banks and the Swiss government have been getting from the IRS, calling it a violation of national sovereignty. I knew they were pissed off… but didn’t think they’d ever tire of being Mordor’s paid minions.
I can also tell you that Americans here have been going bats over the IRS’s new demands for what amounts to double taxation and full disclosure, or confiscation of passports at US borders and threats of jail time. It all smacks of an amazing level of desperation.When I was little, the Soviet mission here was ringed by barbed wire and guard towers. Today, it’s the US mission which has barbed wire and guard towers.
Lew Rockwell is a credible source but I have no idea if his source is well placed or accurate. I think we have to take this info with some healthy skepticism. Many in this group have PMs stored in Switzerland so I thought this was worth sharing.
Larry
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A group for sharing the concerns and strategies of "senior" or near senior and/or retired members of the Peak Prosperity community.
A general resource for identifying & obtaining fulfilling work with purpose
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Preparing those people on Ise Lodge (Kettering) Northants, interested in the future post fossil fuel.
Here's this from Bloomberg:
www.bloomberg.com/apps/news?pid=newsarchive&sid=aRi_cZUEs6rk
Brief quote: "China will allow companies to use the yuan to settle cross-border trade and let them keep their entitlement to export tax rebates, seeking to reduce the reliance of importers and exporters on the U.S. dollar."
Eep!
Sager