Oh boy, what a week this has already been. Economic meltdowns are accelerating at a rapid pace.
Our idiot government bails out Fannie Mae in a desperate and incredibly stupid attempt to salvage the home mortgage swindle, err bad loans shelled out, and we are all supposed to breath a sigh of relief…
Well, don’t fall for any of it. This is the ice dam breaking, next comes the flood. Vaughn has a few things to say about all of this:
Fannie Mae Unsold $5 Billion Homes Bring Peril to ShareholdersThe problem here is; if they start flooding those foreclosed homes into the market it will drive down property values, which means more homeowners will be stuck in negative equity, which will trigger another round of foreclosures.
So, you have faith in the FDIC, huh?
‘Henry Paulson is about to be given an $800 BILLION dollar blank check in the form of an increased Federal Debt Ceiling which he can spend on Fannie Mae and Freddie Mac IN ANY WAY HE CHOOSES, INCLUDING BUYING THE CRAPPIEST LOANS THEY HAVE AND STICKING A ONE HUNDRED PERCENT LOSS, $800 BILLION WORTH, ON (the US taxpayers) TAX BILL.’
‘That could spell trouble for the economy if too many people start hoarding their money and stop spending it on goods.’
That percentage includes ‘core’. I have a feeling that an overall average of 3.1% is not reflecting reality.
Note to Maria and Paul: don’t bother trying to figure how to send your younger son, Michael, to college for another year for $48,000. Chances are great that there won’t be much of job market in place for Michael, and your other son, to help pay that, and the accumulated school debt, back. Ever. Taking on more debt right now is NOT advisable in this economic climate.
‘Some of the stress feels familiar. Maria and her husband, Paul, have been writing checks to Holy Cross for eight years. Their older son, Mark, graduated from the private Worcester college in 2005, and the Woburn family has always struggled to keep up with rising tuition and fees, which now total about $47,500 annually.’
Too late on that ‘NOT advisable’ thing, huh? Thoughts: First son, Mark; graduated in ’05. Maria and Paul have been paying the college (and the bank) for 8 years, including the second son’s attendance; an average of, say, $45,000. Being conservative in my estimate, that’s in the neighbourhood of $360,000 (to date) for both kids to go to school. And Maria, their mother, can’t work due to illness. Their dad has two jobs.
Chills. I’m feeling chills.
Meanwhile: Food stamp use soars in Mass. ‘Fastest-growing program in nation’
Farm Bureau: Crop Damage Pushing $8 Billion
Which together with the shortage produced by the cultists’ demand we all put ethanol in our cars, means higher food prices for the lucky people, and starvation for everyone else.
After the economies collapse and social unrest roils, the government hired mercenaries will come out the woodwork and from the air:
Blackwater to leave security business following problems in Iraq (and I’ve got a bridge to sell you — cheap)
Still think remotely controlled 757s don’t exist?
On top of this, we’re supposed to believe that Gas Prices Dropping Like A Rock. Where do they dredge these idiots up from? Wish I got paid to write, I’m obviously in the wrong business. Gas is down, what 5 cents? 8 cents? And this is a “rock”?
It’s all Obama’s fault. Check it out. Type in “Obama Antichrist” in any search engine. What you’ll find there will scare you one way or the other.
In other worthy news, we are told that the Marshall Islands are in a severe energy crisis (they should be able to afford more oil now that prices are actually going down, right?). Food is now a #1 issue for them.
Merrill Lynch makes the news again by warning that ‘this winter will be brutal for utility bills‘. Ya think?
General Motors and Ford now on the verge of bankruptcy, a 46% chance and rising. Also joining them will be Mervyn’s.
How bad is it? How about as many as 8,500 banks failing?
I just got another order cancellation for an order that was going to ship this week, guess where I redirected it?
Some of my callers really don’t believe me. I guess I can’t help that now.
There’s more, a lot more, but I don’t want to make you cry.