Common sense goes a long way. I am not an economist. I have not been to college. Spotting poor grammar, punctuation and spelling in most newspapers and journalistic sites on the net is so easy. I guess we can thank affirmative action employees in the newsrooms of the Kwa. The economy, on the other hand, is a bit more arcane, at least to most people. It does not take an economics degree to figure out what happens when mortgages are sold as investments and home prices are inflated.

Last week we saw the chickens beginning to come home to roost. With everyone watching the US stock market, did they notice the inflation causing measures the Fed took to try and save the market from collapse? They poured record dollars into the markets which means that John Q. Taxpayer (which includes me, a working White man) will foot the bill for the worthless paper the Fed bought. I was watching the Asian markets Thursday night (local time) and they were headed down. Europe followed. The Japanese dumped funds in and had already said they would intervene in the Yen. Its rising strength against a sagging USD mean the carry trade could unravel. Europe followed. It ain't over yet. Major ARM resets will happen in October and then, again, in March. Look for more waves of foreclosures. Banks will be saddled with homes in a saturated market and credit is tightening up. This is how depressions come about.

I am already reading stories about Capital One raising rates and lenders making equity credit and refinancing harder to come by. Fed dumps of liquidity into the markets to buy worthless paper will not help the local economies and/or housing markets in many areas. They are toast already. I see more and more 'home for sale' signs in my area. They are not moving and the owners refuse to budge on price. It may take longer for it to hit this area but it will. The Florida money will dry up.

The only upside to economic contraction will be a large number of latrinos going back to whatever third world shithole they came from.

Timebomb2000.com is an excellent site for breaking news and, especially, for economic news. John Galt and Dr. Fungcool are two of the best common sense economic guys I have seen and they post there regularly. They don't get paid for their analysis, unlike the twits on CNBC that see everything as a buying opportunity. LOL, they would say that if the market totally crashed. Buying opportunity? Only if you want to be a landlord. Scoop up foreclosures and rent them out to those losing their homes. A lot of the timebomb folks headed to pull money out of the banks. Not a bad idea, especially if you are familiar with the Banking Holiday Act. It says the Feds can shut the banks down to prevent runs which they may have to do since fractional banking only requires banks to keep 20% or so of deposits on hand. They don't have the physical currency to hand out to people, not everyone anyway.

If you don't have silver then buy it now while it is still affordable. Gold is okay but not easy to liquidate if money is tight. Silver is usable for day to day living expenses. Get it before those in the know get it all and leave you holding the bag as they always do in the markets.

To be continued.