Friday, October 03, 2008

THE BAILOUT

Well, I think the verdict on the bailout is in. Everyone seems to know it's going to fail already. The Dow fell like a brick after it passed. That gives credence to what I was saying that the Repubs intend to step on this economy like a cockroach. This bill was a steamroller on rocket fuel. Many Dems went along. P olitics didn't allow many members not to vote yes. The rock and the hard places.

Are you watching Citigroup? Today it was announced that Wells Fargoway outbid Citigroup to buy Wachovia. Citigroup thought they had it in the bag. Citigroup is saying they had a deal. Citigroup needs Wachovia's deposits desperately. It's up in the air, but my money is on -- and in -- Wells Fargo which almost totally avoided the real estate market all along. Boy were they smart.

Now California is ready to collapse.

And who was Ahnold's big financial guru? Warren Buffett.

Who is a major stockholder in Wells Fargo? Warren Buffet.

Who bought heavily into a bailed-out AIG? Warren Buffet.

Who bought out Constellation Energy? Warren Buffet.

The big guys are starting to show their cards. That means this is it.

Now I am interested in what Jackson Stephens and Alltel are doing but that would be much harder to see. Even harder to see into Carlyle or Blackstone.

A few days ago I asked if the rest of the world would go quietly down while the US partied on.

Today I ask if 49 states would go down while America's largest and most consumptive economy; the "Hollywood" image of consumption, thrived. California may fail within a month, bringing unforseeable consequences. I just watched my old Congressman Brad Sherman raise the obviuous question. "We just spent all our money on this bailout. So what's California going to do?" Then he essentially said that California is out of luck. Sherman is an accountant and financial expert who was one of FTW's many congressional subscribers.

So, why am I in California?

I am home.

This is coming to pass for all of us in short order. I'm glad to be in a place I know, with people I know, now that it's here. I can function here. -- Jenna and I used to talk about an old 1960s movie with Gregory Peck and Ava Gardner called "On the Beach". Great movie. Don't get the newer one with Armand Assante. It sucks.

The sooner all this happens, the sooner we can start fixing things. Let the old paradigm acknowledge and achieve its death quickly. A new paradigm is being born. We are already in the new era.

MCR
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Congress Passes Bailout; Focus Shifts to Fallout
Article informing portions of Mike's analysis above.

Note the fallout already unfolding in Europe:

Dutch-Belgian banking and insurance giant Fortis was broken up on national lines, with the Dutch government taking over its operations in the Netherlands, after an earlier rescue effort and asset sale failed.

In Switzerland, UBS AG, hardest hit among European banks by its exposure to subprime holdings, said it would cut 2,000 investment banking jobs.

Divisions have emerged within Europe over the past week, with Ireland offering guarantees on bank deposits, prompting a flight of capital from British lenders to Irish banks.


After Several Dark Years, Amtrak Does Well in Congress
Former Treasury Secretary Calls Bailout Plan 'Crazy'
JP Morgan Advanced $138 Billion to Lehman
Debbie Cook, Mayor of Huntington County, Candidate for Congress
One of the bright lights of the ASPO Conference last week - JO

New Ecuador Constitution Would Give Nature Inalienable Rights
Public Participation in Environmental Decision-Making
Report on pros and cons.

"Some participatory processes have functioned as a political tactic to divert the energy of the public away from engaging in dissent on important differences and into activities that are considered safer by an agency.... This use of public participation is counterproductive in the long run," the report said.

[Government] Secrecy Film
The Trade Secret Defense: Voter Tampering
Total Information Awareness in France
Bobcats Live in Foreclosed Home in LA
Where Have I Seen Sarah Palin Before?
Insights from an immigrant from Iran

--JO

14 comments:

agape wins said...

Hi,
"Some participatory processes have functioned as a political tactic to divert the energy of the public away from engaging in dissent on important differences and into activities that are considered safer by an agency.... This use of public participation is counterproductive in the long run," the report said.

Agapa;
the above fits right in with the
following, who knows who this is, or
what their intent is/was!!

this is a request for Blogger response, I am pasteing
Fozziebear's post to the latest.

Peak Oil's Blog has been around for
years,& every Blog has the right to
control "content", for obvious reasons; I have seen distracting, &
even Mean postings on other Blogs.
I have seen negative postings here in the past. Fozziebear just started posting this month, possibly with some non constructive posts in the opinion of Mike.
There are other sites where someone
can post their slant on World affairs, & their opinions!

Can you post something which will
shorten, or improve the Mess we
are in, if not YOU are part of the
Problem, in MY opinion??

Blogger fozziebear said...

Why do you only publish comments which you approve of?

WHAT ARE YOU TRYING TO HIDE?

THE TRUTH?

3:20 PM

Steve said...

I just have to comment on this statement: "We just spent all our money on this bailout."

That is an erroneous statement by Brad Sherman. We are already so far in the red, it is not even funny.

I might have a different slant of this bailout, if we actually had a surplus. But we have not been close to that for many years. It reminds me of a teenager, living on his parents credit cards. Just keep spending, spending, spending.

Rice Farmer said...

This year's rice harvest is cut and drying on the racks. The crash could come any time, but as I stood in the paddy and gazed at the rows of rice sheaves drying in the sunshine under the blue autumn sky, I realized that some things never change, no matter what happens in the world's financial capitals.

There is hope, people. One of MCR's most important messages is that of "community." Unless you live in the wilderness and survive on nuts and berries, you can't be a lone wolf and weather the coming storm. Form communities, pool your talents and resources, and pull together. With communities and a little luck, we can not only survive, but also thrive as we pick up the pieces and build a new world.

Just one thing: Everybody has to pull their own weight. Once elitism gains a foothold in your community, the whole thing starts over again.

marketTrader2 said...

I'm still looking for that area where all the peak oil people are going to come together and take it over. We must control the local government.

marketTrader2 said...

Where is all the peak oil people moving too? We must control the local government.
I am not a believer in a quick and painful path to the bottom. America is entering a rapid decay that will remain for decades. Unless there is a nuke attack or until we far exceed gasoline inventories, then life will go on at a useless empty pace here in the middle of nowhere. So where is the peak oil community of somewhere going to be? I really don't want to have to check out the quakers.

Brian said...

Mike or someone else,

What do you specifically see happening in California that would be different from any other state. Gas is already more expensive in CA. Would it be 2 or 3 times higher than the rest? What else would bring Ca down more so than in middle America or any car-reliant area (most of US)? Thanks for all your efforts. You're a life-saver.

Brian said...

Pick a place Markettrader. Pac-NW?

Conchscooter said...

I am surprised to read that MCR consider's the current leadership to be ina conspiracy to destroy the economy. I am surprised because that seems to credit them with too much intelligence. Does it not seem that the fundamentals just got away from them when they ignored the realities of human existence? You can't consume more than you make without a catastrophe, an inevitable crunch. They were too dumb to understand that immutable rule applied to them too? Am I being too kind to our leadership here?

Mark said...

Let the old paradigm acknowledge and achieve its death quickly. A new paradigm is being born. We are already in the new era.

Groups of Native American elders have been gathering over the past few years, to bring teachings of sustainability and harmony with Mother Earth to the world to help transition to the new paradigm. One of the next gatherings of elders and peacemakers takes place in Arizona next spring.

marketTrader2 said...

Not arbitrarily going to pick a place. Perhaps a place that has a Debbie Cook as mayor, but not Huntington Beach, too close geographically to a liability. The Relocalize forums are just a fantasia. Really proves how dependent we are on our jobs to have not seen any physical movement of the mosaic puzzle pieces.
Maybe some communes still exist?

agape wins said...

Here is the media's slant on Calif.

http://www.nytimes.com/2008/10/04/us/04calif.html?_r=1&th&emc=th&oref=slogin

about a place to "Take Over".
if you have not moved already, stay!

In one of Mike's posts was his
advice about Running, as he did to
Venezuela, you will be suspect, an
outsider for years, & actually be
out of your element, which is why
he is in L.A.! He will be able
to out think, any stranger who is after him.
Forget "Take Over"!
Think LOVE, & cooperation, not
Hate, & Conflict, which consumes
vast amounts of energy, and
destroys Life, & resources.
That is what this is all about;
Life, Resources, & ENERGY!

Remember, or rethink your History,
The North American Natives lived
Peacefully for almost 2000 yrs.,
until the invaders arrived, or
just before, other examples abound
if you look past our tainted
history, which we are controlled by.

Luckymom said...

I would speculate that I am probably the first southern, self-described "soccer mom" to comment here!

I greatly appreciate your insights into our changing world, and regret that things are moving in such a negative direction. Being a mom, I am very concerned with actively changing things, if at all possible, for the better.

I think you are absolutely right about remaining where you feel at home and part of a community during this crisis and transition.

Can you please post your suggestions for how to approach local government leaders and how to build a plan for localization. Perhaps some recommended links and resources.

Marty said...

I'm a long-time reader of FTW and this blog, although I rarely have commented. I would like to make three points regarding the recent events.

1) Do you suppose the whole house of cards came crashing down just before the election because the Republicans saw McCain as a lost cause and decided to loot the coffers? Any thoughts?

2) I got laid off from a lucrative 20 year career of hi-tech in Sept. 2001. I never could get back into the game before having to make money, so I got into something completely different - teaching. I taught in the US for a while but saw the writing on the wall back then and I bailed out of America in 2004. I live and teach in South Korea where my taxes won't go to the bailout. It still infuriates me, though.

3) you ought to see the localization over here. They grow things in absolutely any spare piece of dirt there is. They farm most of it by hand with only small carts or very modest motorized carts. And then they sell it on the street corner. I buy most of my veggies from the locals. Its been only 55 years since their last major war and many remember being hungry when things got rough. That won't easily happen again here. Nearly all of the farming done by the old folks as the rest of the working folk make Korea one of the top 12 industrialized nations. And if you're not actually in Seoul, its actually pretty cheap to live here and even save money. I guess I did what Rice Farmer may have done.

Martin

M. Pyre said...

luckymom, I'm not Mr Ruppert, but I'll offer my suggestion on local organization.

I'd suggest that you start at a basic level, and find others in your town who think like you do about the need to orient things more locally, from a government-power perspective.

I would try to organize from the ground-up. If you try to work with existing local (town, county, state) government you are likely to get pushed into their existing mindset, which is to favor the Fed Govt perspective at the expense of true democracy.

I've been thinking for several years we need to be considering the idea of a parallel government, how we'd like it to work, who we'd want to be involved. I'm talking about looking to ourselves, and away from existing politicians. I'm talking about imagining yourself as a person in governmental service... what would you want to be doing, what would you want the government to do?