patrick.net

Another advantage we have in ID is the large percentage of Mormons. I don't think much of their theological beliefs, but they do have a strong community support system for those Mormons down on their luck. Places on the East Coast without many Mormons have other sects such as the Amish who may prove very helpful in a new set of hard times. They are a pool of "low tech" knowledge who could train others how to use horses to plow fields if oil really gets scarce.

I know a local breeder of Belgian work horses who has no shortage of demand, there is already a movement afoot to reduce oil consumption in the eco hobby farm set. Its very cool to sit behind a couple of these mammoth beasties while they drag you around.

Apparently, its like $4-6 a day to feed one these guys in these drought induced high hay price times, but often over $150 daily to feed the Deere tractor monster diesel.

Could someone explain to me exactly why BofA is so hot to purchase Countrywide?
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3511120.ece

DennisN,

Some really good observations on your part, and a lot of the reason "I" have struggled with the outrageous run up in RE prices. A house in and of itself... produces NOTHING. Other than shelter which isn't going to do you much good after you've starved to death.

As for personal security? There's nothing like good neighbors. How do you get good neighbors? Be one yourself!

I can't speak for HARM but "I" will say... I'm a little disappointed by some of the responses. I guess I got the wrong impression when we said "let's suspend disbelief" for a second and imagine a post-crash world where not all get sucked down the same shit tube?

NVR,

If I get a chance to come back in another life, f@ck being a "blonde" (I want to come back as a Clydesdale!) Can you believe how PAMPERED those things are?

Could someone explain to me exactly why BofA is so hot to purchase Countrywide?

The theory is that the regulatory powers-that-be might be more willing to turn a blind eye to BofA's monopolistic goals if they bail out the poster boy for the housing crash. The biggest mortgage lender in the country going bankrupt would have quite a chilling effect on the nations economic psyche.

Anyways, BofA can just play some accounting tricks and write off CW's toxic debt over the next couple years. They won't be paying taxes for a long time.

Here in the middle of changing all of our corn to ethanol, we are seeing an impressive run-up in ag. prices. www.nytimes.com/2008/03/09/business/worldbusiness/09crop.html?hp

It's just what we were talking about: higher grain prices but the farmers are feeling the pinch of fuel and fertilizer prices.

Recession is bad for everyone, not sure if we are looking at a complete meltdown, Mad Max style. But, the whole thing has me thinking that we are going to relive the 70's; stagflation, oil crises, disco (shiver). At least Battlestar Galactica is better this go round.

Beware of spiking ag commodity prices (or not, if you are peak oiler):
Read Smith, a farmer in St. John, Wash., thinks a new era is at hand for all sorts of crops. “Price spikes have usually been short-lived,” he said. “I think this one is different.” Hmmm..., that refrain sounds so familiar. Where have I heard it before?

Back to the zero-sum game

Yes. Vast wealth can be achieved by having dollars at a time when owners are forced into sales. Look at Carlos Slim Helu.

The trick is being near the bottom (and thus being able to call it), having deep enough pockets to hang on until the turn around (thus avoiding your own fire sale) and hoping society is stable enough to not chnage the rules mid-risk.

In the Depression scenario, I would contend:

1. If you think you can pick the thing or things that survivie the meltdown better then market, where only the very strong will survive by deign of their size, go right ahead. Impress me. A lot.

2. I see a depression as pretty Vegas-like. The house always wins because they have deeper pockets than you. If a hedge fund can create its own momentum play to force you into liquidation because it can, it will.

3. After succeeding at 1 and 2, simply look at the tax law changes to socialize the remaining wealth after the Depression.

Of course, if it really gets that bad, we are well on to the Nation versus Nation scenario. All those European nations that are pretty mad right now about being bilked into the world of the sub-prime. Or the Chinese looking at the vastly depreciating pile of US currency in their vaults. Or the oil nations looking at their dollars thining, "Why am I holding dollars and giving up oil?"

Trade is a delicate dance requiring faith and that is in very short supply right now.

“Price spikes have usually been short-lived,” he said. “I think this one is different.”

It is a new paradigm!! :)

I understand that North Dakota is the "fortress" of wheat production.

Federal Authorities open CRIMINAL investigation of Countrywide for Securities Fraud! :-)

The FBI is looking at whether the company misrepresented its financial condition in securities filings.

Interesting turn.

For my money I'd say we've got an historic week for the financial markets in front of us, one to tell the grandkids about. As far as I know, the central banksters have no tools at their disposal to stop margin call momentum panic. Hedge fund implosions, derivative unwinds, bank write downs.

I'll predict this is the beginning of the end for the irritating, overused "subprime crisis" moniker, the "credit crunch" will head to memory.....we are about to enter "full blown financial crisis" stage....look for the new headline on the nightly news by the end of this coming business week. Probably a news conference from the White House with the entire financial team in the background endeavoring to shore up confidence.

Main street America is about to get an education on just how serious this situation is.

Stay tuned for imminent FED emergency operations. Wondering just what those crazy kids are going to try this time.

Stay tuned for imminent FED emergency operations. Wondering just what those crazy kids are going to try this time.

Will gold break $1000 this week? :)

Is that FED or FUD? I'm so confused.

Is that FED or FUD? I’m so confused.

It is F'ED. :)

The tan man sure looks very attractive to inmates. I hope he's gotten enough lubricant stocked up.

I was just thinking this afternoon....we need more prison space for white-collar criminals especially.

We have entire "forests" of abandoned REO houses in Stockton and Modesto.

Why not build up a giant fence around those two towns and turn them into a minimum-security prison colony?

I was just thinking this afternoon….we need more prison space for white-collar criminals especially.

Only if there is a way to pay for that without raising tax.

New Post :
Devaluation of the US Dollar : On the other hand ...

The machine is overwhelming to me. For example, American workers have turned into service industry workers...while jobs have been off-shored, outsourced overseas. High paid professionals coming to the US on work visas (then become greencard holders) and these are engineers and doctors. The thing that frustrates me is that in their respective countries their education was free. I work in a hospital and I see this upclose with the ratio of Drs coming from India, vs. American citizens --for the same position. Then they come to the US and they get the high paying job, (200K-400K annual) while we are paying more and more to try and get a college education. Not to mention that our young men are then sent off to fight in wars either for our own defense or the defense of some other country. It seems the "system" is designed to bring Americans down.
Is this the fault of the American worker? How many more would plan and go to college if it were "free."