Wednesday, October 29, 2008

MCR wrote:


Instead of cutting rates by .75 points today the Fed cut by .5. What effect did it have on the Dow?

A few years ago Japan mistakenly cut rates down to nothing. They couldn't give money away. We're moving sharply in the direction and the Fed knows it will have to cut again and again to simply delay the inevitable. The Fed Funds rate is now 1 per cent.

But when rates get to zero there's nothing left to cut is there? Usually that's the time when there must be enough left to cut to do some good. I see this short-lived rally as a failed last ditch effort to help McCain. Also as pump and dump, pump and dump.

In the meantime the auto industry is shaking out. Kerkorian is liquidating Ford stock and GM and Chrsyler look certain to merge. That means that Ford must go down, and I suspect it will be very hard. Just think of all the ancillary shutdowns that must follow: parts manufacturers and suppliers, trucking companies, dealerships, tire companies, steelmakers, car rentals, ad infinitum.

What will that do to the Dow? How many jobs go then on top of the 750,000 already lost and the maybe million more that are already in the pipe to go from the lack of spending thorughout the economy.

A bottom in the Dow 5000s look pretty good right now, but maybe not. It might go lower. It's just like what happened when they took oil prices that should have been around $110 a barrel and spiked them to$147 in the name of demand destruction. A storm was unleashed that couldn't be controlled. It still can't. Once they saw the effects ofthe $147 spike they had to shut things down faster than I think they had planned. Now, it's just fire-sale, grab-what-you-can-and-run time for TPTB. That's what happens when you play with fire.


As I recall, Citigroup and Ford have had a long history going back to the financing for the Model T. I also seem to recall that somewhere Citi bought Ford's Finance arm, but I might be wrong there. I'm not going to look it up but I wonder which bank handles Ford's banking services. So which bank would lose Ford's cash -- the money it useswith fractional reserve banking to create $9 or more in loans to buoya drowning balance sheet?I'm not going to take time to look all this up, but I just grinned a little.This will probably eventuate in a US gov't bailout of Ford and/orCitigroup. Let them fail or save them; either way, it's the anvil thatbroke the camel's back.

Drum roll please. Can someone please shout, "Timber!"?

JO wrote:

Nouriel Roubini's Blog
Peak Money
Spy Fears: Twitter Terrorists; Cell Phone Jihadists
World's Mammals in Crisis (apart from the economic)
McCain's Real Petraeus Doctrine
US Special Forces Counter-Insurgency Doctrine
The Woman Greenspan, Rubin and Summers Silenced
GeoEye Releases First Half-Meter Color Satellite Image
Army of the Republic (novel)
From the book's jacket: "Read it while it's still fiction."

1 comment:

Victoria Hokulani said...

Hello Humans, this is your Mother speaking. I am very worried about what you have done to your planet. You have taken all of these resources that I gave you and have spoiled, polluted and wasted all of it like there was no tomorrow. You have done too many stupid and wasteful inventions with all of the organic elements. I have been putting up with your crap since that big Noah flood event but now I can no longer allow all of this rampant idiocy to continue. It is bad enough that you have lost yourselves in the lust and greed of consumerism, but lately, especially in the last 20 years, the complete disregard of inate wisdom is really pissing me off. Have you all lost your minds? Why are you forsaking your souls for phony images of affluence, chemical concoctions, and worst of all, constant warfare. War over ridiculous, devisive religions and worst of all the lifeblood of the Earth, OIL which you see fit to waste into oblivion? You have made yourselves into a pathetic race of greedy, waddling, lazy and obese shells of humanity while you suck up this vital source of my planet.
I gave you inner wisdom, creativity, a perfect fluid body with feet for travel. I sowed natural mind altering herbs that grow freely so you could feel closer to me. I gave you the knowledge to ferment fruits into wines for relaxation and procreation. But they were not good enough. I gave you 1000's of plants for medicine and food, but those weren't good enough, either. Instead, you bow down to your men with too much education and let them control your health and well being with their artificial preparations, then you wonder why you are always so sick and depressed. Why do you keep doing the same things over and over again and think it will end differently?
I created laws for this earth, The law of Survival of the fittest. You never liked that one too much and chose to pervert it with your dependence on doctored humans and their artificial drugs and treatments that keep so many of the weak alive, spoiling this planet to the edge of redemption.
So here I am with my precious planet that is like a mangy flea infested mutt. So what would you do if you were me, about all of these parasites on my beloved Earth? Should I just let you guys keep fouling up and depleting the place and let you continue to procreate?
It is all part of my grand design, this cleansing stuff. It's all good, though, I will be keeping quite a few of you, so not to worry, its not total annihilation. Miraculously, you haven't nuked yourselves to oblivion yet, which you have me to thank in case you were wondering.
That old book that you think I dictated, says that the meek will inherit the Earth. However you may define the word, meek, does not matter to me. What really matters is what you do with what is left. If the "Meek" screw it up again, which apparently the track record has not been good, then I, too, will keep doing the same thing over and over again, hoping for a different outcome. How embarrassing. Just because I am a Goddess doesn't mean I can't screw up, too. ( For instance: I should have never let you dink with genetic engineering, BIG MISTAKE, sorry about that.)
So for all of you Meeklings that don't get raptured
( I always roflmao over that one!), Here's a clue for the males: Its HER turn to carry the big stick!