For those of you that really believe Rush Limbaugh or Dave Ramsey and the idiots on televitz, why don't you just mail me your money if you want to be rid of it so badly. The aforementioned are acting as stock market cheerleaders. Why? So the big boys can make it out of the door and leave the little guys holding the bag.
As the old French proverb goes, 'be careful what you wish for...', so goes the unFed Reserve. Cramer and Rush and others have railed for an interest rate cut. Well, we got one, kind of. The rate the unFed charges other banks dropped but rates for average borrowers didn't. No matter what kind of cut they do, it will kill the dollar. The Wall Streeters are like dope fiends that need the quick fix. The unFed gave it to them but the long term consequences are not going to be nice.
Amazing how these Wall Street guys love to gush on about free markets and the government should stay out of the markets....until THEY start losing money. Once that happens, they are begging for taxpayer bailouts. I guess those using terms like 'socialist' or 'commie' to brand their enemies are some of the biggest commies of all.
Don't think that this over. It isn't. Rush and Dave Ramsey are (in the words of Jim Puplava) stuck on stupid. All they can think of is 'subprime'. Guess what, guys? It went past subprime two or three months ago. The defaults and contagion hit Alt A and Prime paper already. Everyone is tapped out. Some of it from stock market issues caused by subprime and a lot of it from other classes of borrowers who were just hanging on.
Many ARM resets will occur in October and in the late winter of next year. We have more pain to get through. ]
I did read a story about a 'run' on Countrywide's banking branches in California. Those are the lucky ones. They got their money. With fractional banking, most people won't get their money.
Dean may be poised to be a powerhouse hurricane. It is already Cat. 4 and headed for Cat 5 status. If it hits Louisiana or Texas then you had better have your cars filled and as many gasoline cans as you can lay your hands on. Gas prices will be up. Oil has already gone up when Shell pulled rig workers as Erin approached and she wasn't even a hurricane.
More to come....
Friday, August 17, 2007
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