Fed: Lending Standards Tighten, Loan Demand Weakens in October
Submitted by
CalculatedRisk on Mon, 11/03/2008 - 12:34pm (143 comments)
in
User login
Recent posts
- NFIB: Small Businesses Still Not Hiring
- Rail Traffic increases 5.7% in August compared to August 2009
- Employment Diffusion Indices
- ISM Non-Manufacturing Index declines in August
- Employment-Population Ratio, Part Time Workers, Unemployed over 26 Weeks
- August Employment Report: 60K Jobs ex-Census, 9.6% Unemployment Rate
- Krugman: On Inflation and Interest Rates
- Employment Report Preview
- Realtors, Builders oppose another Housing Tax Credit
- Hotel Occupancy Rate: Just below 2008 Levels
- Greece: Default Probabilities before and after policy response
- Pending Home Sales increase in July
- Weekly initial unemployment claims decline slightly
- Personal Bankruptcy Filings: Down from July, Up from August 2009
- U.S. Light Vehicle Sales 11.5 Million SAAR in August
Who's online
There are currently 42 members and 90 guests online.
Currently online
- HomeGnome
- Comrade Kristina
- Elvis
- Rajesh
- Duke of Con Dao
- Leigh
- sdtfs
- josap
- Comrade Elmer Fudd
- hiteshb
- poic
- Broke Not Broken
- greenchutes
- fried
- pastor doug
- YAA
- aleister perdurabo
- skip
- Basel Too
- Juvenal Delinquent
- aClem
- Mike in Long Island
- EEngineer
- mhdoc
- Bad Dawg Bobby
- mos maiorum
- bearly
- Napolean
- ille_vir
- Unhappy American
- SF Tanzanite
- Live Free of Debt
- american taxpayer
- Outsider
- comrade mike
- Rob Dawg
- Bob_in_MA
- Jonathan
- Sippn
- digalert
- hiker90
- MSM
Ding
thank gawd, no receession.
Rally until it falls.
Chart-busting cliff-diving.
thank you!
This sucker could go down.
The fix was in...sometimes:
"NY judge sentences former UBS executive to 78 months in insider-trading scheme
NEW YORK (AP) -- A New York judge has sentenced a former UBS executive to 78 months in prison for his role in an insider-trading scheme.
Mitchel Guttenberg had pleaded guilty to charges he made millions of dollars by selling inside tips to investors. Guttenberg was arrested in 2007 in what prosecutors called one of the biggest Wall Street insider-trading rings since the 1980s. They alleged investors were tipped off about stock upgrades and downgrades by UBS and pending deals involving Morgan Stanley clients, allowing them to cash in before the news hit the market."
Sometimes when you're paranoid, someone is following you.
It be jammi
My next-cubicle neighbor just got off the phone, bitching about his credit line being reduced even though he has excellent credit.
Talk about real-world, real time posts by CR!!!
I'm in NC--no political ads here. But I do have the opportunity for a 5.5% Capital One CD if I am willing to give them my money for 7 years.
Not likely.
I see fees falling off a cliff. No fees, no more trophy wife.
Funny, I don't hear anything this negative coming out of the MSM or near the quality of analysis either...
Is journalism dead?
Funny, I don't hear anything this negative coming out of the MSM or near the quality of analysis either...
What's negative about banks cutting back on credit?? Isn't that what we want them to do?
It is quite hilarious that lending standards are starting rise again while government nitwits lambaste banks for not lending more money. The cognitive dissonance is quite amusing.
So I take it that the Depression is baked in already by the Equities.
Is journalism dead?
Dean | 11.03.08 - 2:58 pm | #
No, it just moved to the internet.
In California, but haven't seen a political yet.
Anonymous writes:
"So I take it that the Depression is baked in already by the Equities."
You're kidding, right?
Elvis writes:
I see fees falling off a cliff. No fees, no more trophy wife.
You're so cynical. I happen to know lots of hot chicks falling all over themsleves to sleep with short, chunky, middle-aged nerds with bad suits and poor social skills. I'll send you the list once you confirm your ID with bank account info!
A question that I have always had about these numbers - Are they weighted based on the size of the financial institution? Or does bank A with 100 million in assets have the same weight as bank B with 2 billion?
BTW - do not click on some ad dozens of times, people. Google may interpret it as clickfraud and blackball CR!
bobn writes:
"I happen to know lots of hot chicks falling all over themsleves to sleep with short, chunky, middle-aged nerds with bad suits and poor social skills. I'll send you the list once you confirm your ID with bank account info!"
Oh, cool! Nigerian Trophy Wives for Everyone!
and DOWN the stretch they come!!
I'm swamped w/ Ford ads. I'll trade the pol. ads for the Fords ads. Who would like to counter me??
Supposedly they have a way to track fraudulent clicks.
Click fraud - Wikipedia, the free encyclopedia
Yes, just click it a few times...anything more will hurt CR.
Up with Prop. 8 and Sara R.!
Down with the market!
C'mon Ron Paul, pull that rabbit out of the hat tomorrow!
karelian writes:
BTW - do not click on some ad dozens of times, people. Google may interpret it as clickfraud and blackball CR!
Absolutely. Not only that but there is no appeals process. If they decide not to pay CR he has no recourse. [The voice of experience.]
CR, you need to seriously move to a more targeted and accountable ad revenue model. "Calcurisk" is available.
Eric writes:
Funny, I don't hear anything this negative coming out of the MSM or near the quality of analysis either...
What's negative about banks cutting back on credit?? Isn't that what we want them to do?
Eric | 11.03.08 - 2:59 pm |
Depends on your perspective. From the government's POV, this is bad news since (now anyways) they need to start lending again. No lending=failed policy.
From an economic POV (at least the way our economy is set up) it is bad news since lending/credit/borrowing = economic growth. Anything less than economic growth is bad, even if the Fed is trying to move heaven and earth to stop it.
The MSM usually toes one of the two themes above, hence my labeling this as 'bad news'.
From my perspective, this is a natural consequence of too much lending and a necessary correction.
two words:
DEMAND DESTRUCTION
two more words:
DEFLATIONARY SPIRAL
& four parting words (as I have work to do):
TIN FOIL HAT TIME
Had Enough Volatility Yet? Direxion Set To Launch 3X Leveraged ETFs
Had Enough Volatility Yet? Direxion Set To Launch 3X Leveraged ETFs -- Seeking Alpha
"Had Enough Volatility Yet? Direxion Set To Launch 3X Leveraged ETFs"
Call me when they have one that goes to eleven.
Had Enough Volatility Yet? Direxion Set To Launch 3X Leveraged ETFs
Can I haz FAZ?
So when do the public executions of bankers begin?
Direxion Set To Launch 3X Leveraged ETFs
Kewl... easy way to back up the truck once we hit bottom!!!
Kewl... easy way to back up the truck once we hit bottom!!!
Eric | 11.03.08 - 3:19 pm | #
At 3x, you better be damn sure it's a bottom.
"I happen to know lots of hot chicks falling all over themsleves to sleep with short, chunky, middle-aged nerds with bad suits and poor social skills. I'll send you the list once you confirm your ID with bank account info!" bobn
Fortunately, I don't fit that description, but, I think Jaswant might provide his ID and bank account info to you.
At 3x, you better be damn sure it's a bottom.
Like, duh. It was a joke.
Big brotherÂ’s watching, we watch him back
We see right through his disguise
He tries to scare us, with angry words
But we all know that theyÂ’re lies
Whole world is waiting
Just see the fear in their eyes
Whole world is watching, observing every move
Is it beginning or the end?
Just like a chess game, but so intense
That I just donÂ’t understand
Anticipation
ItÂ’s much too big to pretend
(wake up), itÂ’s 1984
(wake up), but weÂ’ve been here before
(wake up), itÂ’s 1984
(wake up), but weÂ’ve been here before, (here before)
The volatility chew on those will be horrible.
When do we get the 30X ETFs like the big boys get?
I'll certainly be checking out the 3x short DJ real estate (Super SRS!). Gonna be a lot of pain in the commercial world in the next year.
Like, duh. It was a joke.
Eric | 11.03.08 - 3:22 pm | #
Whew! I thought we lost another one to the tribe of bottom callers.
It's all priced in! Even Ponies!
"Had Enough Volatility Yet? Direxion Set To Launch 3X Leveraged ETFs"
Sweet, I hope its optionable!
OT [reposted]
Demand destruction:
AMID a deteriorating market for iron ore, Australian miners are facing the prospect of a 40 per cent fall in the benchmark price of the steelmaking material next year and the curtailment of existing production and growth plans.
The spot price of iron ore - Australia's second-biggest export earner - has fallen to $US60 ($87) a tonne, compared to the benchmark price of $US100 set in July.
Brazil's Vale on Friday said it would slash annual production by 30 million tonnes.
Iron ore goes from boom to bust
Crikey!
All ponies will be gelded before delivery.
Funny stuff on bubblevision. All the predictions thrashed around on this site 2 yrs ago is now shocking news to the bubbleheads, and of course, Sebastian.
"So I take it that the Depression is baked in already by the Equities."
S&P 500 P/E ratio of 21 = Depression baked into equities?
At least by that metric stocks seem to be forecasting good times ahead, not depression.
Duh.
Truth still stands.
The average consumer has more debt already than they can ever expect to pay back. The only ones that want more are the ones that you definitely dont want to lend to anymore.
Nothing will change this.
In California, see the political ads, unbothered. It's political season, political ads are expected. But if you want to cut them off, I don't care either. It's your site.
I miss Oingo Boingo. There's nothing wrong with capitalism.
"is now shocking news to the bubbleheads, and of course, Sebastian."
Sebastian has been a good sport and admitted that he was wrong on the recession. I don't think it's fair to lump him in the bubble heads since he is well informed, but has formed different opinions based on the facts on hand.
"... and of course, Sebastian."
Sebastian is now in agreement with the majority of the posters. There was quite a discussion about it this morning.
All ponies will be gelded before delivery.
Why not gilded instead?
[In California, but haven't seen a political yet.
sportsfan ]
CA gets its political events way before the elections. All they get are fundraising events. Then the money quickly leaves the state and spent elsewhere...
Firefox and Ad Block Plus. No ads, period. How is it most people are not using these tools already?
Wallstreet workers leaving NYC.
http://www.reddit.com/r/business/comments/7aw9g/wall_street_workers_leaving_nyc_for_fresh_start/
I'm going long hot personal assistants.
Oops.. link to actual article:
Wall Street workers leaving NYC for fresh start - Careers- msnbc.com
Mephistopheles writes:
So when do the public executions of bankers begin?
Mephistopheles | 11.03.08 - 3:19 pm | #
Don't worry some mid level managers will be sacrificed to the public's rage. The CEO's are off limit. Unfortunately.
I am watching(with worry) the steady message being disseminated that it is your neighbors fault and not the systems.
Jay Gould's infamous quote keeps popping to mind.
"I can hire one half of the working class to kill the other half."
Let me reword that:
I can use propaganda to convince one half of the working class to kill the other.
Liberals better start arming.
pretty low vol today, bouncing off 9300 now to lower
Will asked: "Firefox and Ad Block Plus. No ads, period. How is it most people are not using these tools already?"
Luddites.
andy in nz,
Thanks for the link! Here's a quote from it:
"Mount Gibson Iron, the country's fifth-largest iron ore miner, yesterday said it would sell its ore to a major shareholder, APAC Resources, and an associated company, Shougang Concord, at a 60 per cent discount to the benchmark price for the remainder of the financial year after other customers failed to honour binding off-take contracts."
We've all known for years that many Chinese businesses showed total disregard for copyright and patent law...now it appears that this attitude applies to contract law as well.
re Sebastian... [I don't think it's fair to lump him in the bubble heads since he is well informed]
Better go pull up some of his prior posts - His logic on buying NEW early 2007 comes to mind. His skull is thick and it has rocks rumbling around in it.
He's the guy standing on the tracks when everyone can see and hear the train yet denies it. Then just before it hits he says it'll be fine and won't hurt a bit.
I have a bad feeling that the public outrage is going to uncontainable, kinda like "subprime".
Dudes: The ads pay for this site. It's how we pay without shelling out cash. There are many that don't pertain to me. Who give a $#!+?
Unless some dolt thinks CalculatedRisk is aligned with this or that position. That's prolly not good.
Sebastian admitted he was wrong earlier today. Check earlier threads.
Mephistopheles writes:
"I have a bad feeling that the public outrage is going to uncontainable, kinda like "subprime"."
Which public outrage? There are so many things to be outraged about that I have lost count.
Mephistopheles writes:
I have a bad feeling that the public outrage is going to uncontainable, kinda like "subprime".
Funny. I have a good feeling public outrage is going to uncontainable.
I have a bad feeling that the public outrage is going to uncontainable, kinda like "subprime".
Mephistopheles | 11.03.08 - 3:36 pm | #
I see the following future quotes from an official:
"The rioting is contained to a 10 block area near downtown"
"These deaths were not a result of riot police or US army"
Luddites.
Comrade Terry
lol
There is a real possibility that the masters of the universe have lost all control of the jugernaut. They may pretend that is not the case for a few months more. The more I look at the course of events, the more I see a emergent system that has assumed a life of it's own- like frankensteins monster.
If no one pays to build it, how will they come? This economic environment would likely have made the movie "Field of Dreams" inplausible. Luckly, though, at the time, it was made, it was entirely likely that a dead baseball team would come play in a field in the corn in Iowa.
Paltry volume today. Didn't even get the usual 3 PM upsurge. Saving the fireworks for the last 5 minutes, or are we going to ease into election day with a shrug and a wimper?
hank to ppt: blow this sucker
Can some technical trader help me understand why it isn't important that the Dow seems to be seeing heavy resistance at the ~9400 level? Seems to me that it has been rejected about 4 times on 4 different days now.
They can't blow up the market until Wednesday.
That's when the "Market reacts to Obama" meme gets cranked by Rush, Hannity, et al.
People usually do not go nuts till basic needs are compromised. Given that a majority of people are dependent on credit to stay afloat, I think any rash credit limit reductions could be the trigger.
Funny. I have a good feeling public outrage is going to uncontainable.
Rob Dawg | Homepage | 11.03.08 - 3:39 pm | #
Phone call this weekend with 78 yo dad retired Colonel.
dad: what have you been doing today?
me: went to the range and did some target practice with my rifle.
dad: good job, son. You might need to use it this week.
seem's sort of anemic today
Lightest volume day in months. Added to my SPY short.
PPT to hack: message received.
Wow, Bluehorseshoe loves Insurers today. Hell of a rally.
"Market reacts to Obama"
Been thinking of that one. A market punishment by the right.
Currently Smoking Cannabis writes:
"They can't blow up the market until Wednesday.
That's when the "Market reacts to Obama" meme gets cranked by Rush, Hannity, et al."
Anyone who believes an O win is cause for selling will have sold long ago. If anything, I expect the market to react postively to the relief of having this over, one way or the other.
If I'm wrong, I'll owe you a doobie.
the chart today doesn't have nice pointy spikes, looks more like a melting iceberg
Lightest volume since August. Where are the buyers at these low low low prices?
Maybe it's just me, but, I believe after the election tomorrow no matter who wins those in charge will scatter.
This adm. was a closed secret society, as scripted as both the candidates have been on the stump.
Neither the French, Russian or American revolution happened overnight. There always has been a period of 20-40 years of bad rule, a few near misses and then one episode + event that starts it.
What I did this weekend:
Filled 36 5 gallon buckets with 1000 lbs of oats, flour, sugar, etc. While working on this, joked with my bro in law that this storage would make a good refuge in case of gunfire as me and family could lay down behind stacked buckets in storage room. Had a good laugh, as you wouldn't want lead in your food supply.
"the chart today doesn't have nice pointy spikes, looks more like a melting iceberg"
It's weird. I've actually restarted my desktop ticker and charting app more than once thinking it was frozen. Nope. The market is just in a coma today.
Panda
I think the chinese have been smashed by falling demand, its hard to pay top dollar when your broke!
This will not end well for my neighbours in Aussie!
The sheep shagging axis Aust/NZ is getting a currency wolloping and as primary producer countries slowing demand, double wollop!
Buy Buy Buy, Lose Lose Lose.
DEBT DEBT DEBT
Sure do wish I had HIG.
Nice paint job beginning at 3:24.
Look at those pump monkeys go! PUMP IT you crazy primates!
OT : Ha, the Chineese do get it !
Just watched the video of AEIs event :
The Deflating Mortgage and Housing Bubble, Part IV: Where Is the Bottom?
(AEI - The Deflating Mortgage and Housing Bubble, Part IV: Where Is the Bottom?
In the Q&A part, a chinese freelance correspondent (at 01:47:29, name I understood as "Chow Chen") asked the AEI panel (which btw. included Nouriel) :
"...and also for the world economy : should we change the dollar based economy back to the gold-based economy" ?
Answer from the AEI panel : a single simple meek "no".
Guess they were not very comfortable with this question.
Gotta love em Chineese, asking the right questions.
less than 100 point run so far
(12 min to go)
Zombie Kung Fu Panda,
Don't forget a few buckets of spices. And lots of tobasco. You can only dress up rice & beans so many ways until you just have to drown it in tobasco.
Rich farell might be the dumbest man alive. "China is not export dependent like Japan." The woprkld needs to just accept the the Fed saved the system by issuing unlimited dollars. The world just has to accept what is is.
Farrell did so well managing money and buying those financials he became a strategist.
The election response will be a steep downdraft. Wait, don't get me wrong. The downdraft is because so many professional manipulators need an excuse to blame for their recent losses.
Man, when O gets confronted with Bretton Woods III there's gonna be a real weird confluence of the Bush and Obama administrations.
My singular post election prediction is that the President Elect will within two weeks address the people of this nation with a Jimmy Carter moment. He won't remember it but it will echo Jerry Brown and try to claim the conditions he's inherited are "far worse" than expected.
detumescence?
HIG....aaaackkkkkkkk
who told me about this pig.
some lipstick just cost me a condo.
Rob Dawg writes:
"My singular post election prediction is that the President Elect will within two weeks address the people of this nation with a Jimmy Carter moment. He won't remember it but it will echo Jerry Brown and try to claim the conditions he's inherited are "far worse" than expected."
Reminds me of the joke about the three envelopes left by the departing exec for his successor, for help in times of crisis. The first one reads "Blame me".
Market Opening Bell
The forecast downdraft after/during the election seems very plausible (of course I'd think that - I'm short the market). For the last 3 days there are untested 3pm hourly bars pushing down w/ high volume. Today is an exception - there's virtually no volume to speak of. Once the downmove gets going, these are the SPY targets: 95.72, 93.79, 92.10.
Man, when O gets confronted with Bretton Woods III there's gonna be a real weird confluence of the Bush and Obama administrations.
Where I am Mr. Obama is running ads touting his commitment to beef up the military to win the war on terrorism.
They look like ads for another Bush term.
"...lending standards are starting rise again while government nitwits lambaste banks for not lending more money"
I think, Yancey, that is a pretty good summary. Both government and the stock market seem to think that reality is suspended for them - you can bark back at gravity and make water run uphill. We shall see.
you're going neg on us baby
3:57
GET OUT BEFORE THE ELECTION
OUT
OUT
OUT
Augering in here.
"Chapter 13: In which HP digs around in his pockets to find naught but lint and a couple of Cheeze-Its."
those bad bad bears
look at that volume
everybody stayed in bed?
"...lending standards are starting rise again while government nitwits lambaste banks for not lending more money"
Remember the prevailing economic theory in this country is that when people ruin the economy by misusing credit and money you solve the problem by giving them more credit and money to misuse.
I guess the way to stop murder in this country is to give the convicted murderers bigger guns and turn them loose once their trial is over.
pca, i'll save a sword for you.your terrible.
you weere gunning for 1260 spu's , and now that were on the way, your short. oy vey.
Q:Who is going to buy all the treasuries needed to fund the bailout?
A: You and me.
6 to 18 months from now when the dow is at 6000. The deflation is comming to an end and 30 yr bonds are paying 14% citizens are going to be clamoring for 14% guarenteed in their 401K.
If China implodes from lack of exports... who is going to buy up the US Debt?
wages will be paid in treasuries
Debt increasing again after several flat days. $550B increase for all of last month.
09/02/2008\t5,509,898,020,864.12\t4,157,903,641,565.11\t9,667,801,662,429.23
10/01/2008\t5,850,791,254,967.39\t4,273,433,812,160.30\t10,124,225,067,127.69
10/30/2008\t6,257,578,457,250.88\t4,273,314,576,527.33\t10,530,893,033,778.21
10/31/2008\t6,302,793,747,598.97\t4,271,300,715,369.26\t10,574,094,462,968.23
maybe we need to borrow mo money.
Treasury expects to borrow record $550 billion
WASHINGTON (MarketWatch) -- The U.S. government is expected to borrow a record $550 billion in the current quarter, including $260 billion in special funding for the Federal Reserve's extraordinary liquidity programs, the Treasury Department said Monday. The borrowing estimate is $408 billion more than estimated three months ago. For the first three months of 2009, the government is expected to borrow $368 billion, the government said. In the three months ending September, the government borrowed $530 billion. The Treasury will announce on Wednesday the sizes and terms of its quarterly refunding auction.
No, just print more money. Like Zimbabwe! Inflation of 12mil% will do.
Oops. $450B last month. I'll learn subtraction one of these days.
I just realized, Henry Paulson has under 30 hours on the clock. A new sheriff's riding into town, and Paulson will have to shut his mouth:)
re : Reformed Dope Brontide
... who is going to buy up the US Debt?
Well,americans !
I just realized, Henry Paulson has under 30 hours on the clock. A new sheriff's riding into town, and Paulson will have to shut his mouth:)
Huh? He's there until at least Jan 20th, and in some ways, can do more damage after the election. Not like he has to worry about his approval ratings, and he's already made his (hundred of) millions.
Well,americans !
Werner | 11.03.08 - 4:14 pm | #
The non-broke, employed Americans?
So that means the official policy is to "double down" hoping that we can not only spend our way out of this mess, but that there is enough families with cash left over to buy up the debt?
The current administration isn't announcing any new programs once there is a president-elect. The outgoing officials will need to work with the incoming transition team.
All auto sales numbers for the month (excepting Subaru). Worst percentage decline was Hummer. Only Audi and Mini increased.
By the Numbers - October 2008: "Thanks, GMAC!" Edition — Autoblog
Falling on Sword writes:
HIG....aaaackkkkkkkk
who told me about this pig.
some lipstick just cost me a condo.
really - sold today for a nice profit, thank you very much
The banks are running into a real dilemma.The people who need loans can't get them due to the "new" stringent requirement. The people who don't need the loans really DON'T need the loans. They were the smart people who kept their debt to income low and saved and invested. uh-oh Those people might need some loans after all.
re : Reformed Dope Brontide
You see another way (except a diversionary war)?
If Obama wins, the pace of the bust-out will have to be accelerated so that the checks clear before January.
Oct car sales the lowest since 1945! Bloomberg
See Bloomberg re transition:
Bush Praised By Both Parties for Transition Planning
"President George W. Bush is leaving office with some of the lowest job-approval ratings in history. He's being assailed by both of his would-be successors, one of whom will inherit two wars and the most severe financial crisis since the Great Depression.
Meanwhile, Bush is engineering what may be the most carefully considered and potentially successful presidential transition in modern times, both Democrats and Republicans close to the process say.
The president started the preparations last spring, ordering federal agencies to get ready for a new administration, with deadlines for various tasks. By August, White House Chief of Staff Joshua Bolten had persuaded representatives of Republican John McCain and Democrat Barack Obama to join in. The advance work may get the new president off to a fast start, participants say.
I do feel pretty good about this one,'' says Harrison Wellford, a former White House and congressional aide who has worked on presidential transitions since Jimmy Carter's back in 1976 and is now advising Obama.The White House and the agencies are doing a good job, learning from mistakes of the past.''
That planning, Wellford says, will better prepare the president-elect for the ``onrushing freight train of decisions,'' including making some 2,000 appointments.
Seamless Transfer
The imperatives of a seamless transfer of power have seldom if ever been greater.
This is probably the most important transition we've seen in the modern presidency,'' says John P. Burke, a University of Vermont political scientist who has written books about presidential changeovers.We're not dealing with a normal transition, but a very extraordinary set of circumstances.''
Since the crisis erupted, Treasury Secretary Henry Paulson has conferred numerous times with McCain and Obama. The administration is making sure each side receives ``religiously equal'' amounts of time, even simultaneously including representatives from both campaigns in some briefings, says Clay Johnson III, a White House official supervising the planning.
Top officials at the Treasury Department have signaled to both campaigns that they will work to bring on board -- even before Jan. 20 -- a replacement for Neel Kashkari as chief of the department's financial-rescue plan, according to Treasury spokeswoman Brookly McLaughlin."
Neel's a short-timer...
Rob Dawg
With Rubin as the mind behind econ and his obvsession with spending and deficit hawkishness, he is likley sitting there right now crewing up some conconction that will invite capital into the US and try and rejuvenate the dollar outside of and web the rest of the world might try cast over hegemony. In other words, try and make an offer to the rest of the world too goofd to refuse. What might that be?
"Filled 36 5 gallon buckets with 1000 lbs of oats, flour, sugar, etc. "
Some advice - honey stores much better than sugar. Whole grain lasts much longer that flour.
But if lending standards tighten, how can we keep the illusion of prosperity via unpayable debt going? If people need more than a pulse to buy an overpriced house, then housing prices might return to affordable?! That is Un-Amerikan! Argh!
Nah, sugar stores well. Honey stores okay. 30-year-old honey gets darker, and gets a little bit of an off-taste to it, but it's edible and Grandma and Grandpa used it in their homemade bread.
Whole grain does last longer than flour, but then you need a way to grind it. Or be willing to eat it whole. I've used 40-year-old wheat and it functioned just like fresh wheat.
For more food storage info, go to my blog linked below, or <a href="http://sharonastyk.com>Sharon Astyk's blog.
To kill ads:
Firefox & add-on 'Adblock Plus'(free).
Neel's a short-timer...
Fall Guy.
I wondered when I saw his age.
That's how American industry works now.
$550B increase for all of last month
Damn. Then we're already just under $1 trillion deficit for 2009 and we're only entering the third month.
Nice.
I'd say $2 trillion is a given.
thx sara, after HIG blew me up today , i'll need ideas on sustainable bunker living...
Werner writes:
re : Reformed Dope Brontide
... who is going to buy up the US Debt?
Well,americans !
With what?
I already have given you the solution to funding the US debt for the near term (3-5 years). Traditional 401Ks will be done away with and will be replaced by mandatory retirement investments in low interest long term bonds. To boot, the amount of monies you accumulate will be deducted from your expected SS payments when you retire.
Someone the other night pointed out that this is a Ponzi scheme, and it is, but why would that stop politicians? Why wouldn't dopes buy into it?
Yeah,yeah yeah i've read all about the mandatory retirement investments, they started showing up shortly after maria conchita alonzo nationalized private pensions down in Paraguay. My point was that there seems to be a lot of cash sitting on the sidelines, scared money, if you will. The US is also facing massively underfunded pension liabilities, insurance companies projected earnings were apparently a bit optimistic, banks need a place to park all those reserves they're not lending out, people have been using 8%-10% average annual returns when calculating how much they will have acummulated when they reach retirement age. The groups mentioned above will be stampeding into 12 or 14% t-bills, no" mandatory retirement investments" needed. Granted cap gains tax will go thru the roof but as the lovely Leona once said "only the little people pay taxes"
Congenital,
Interest rates on USG bonds much above 7-8% will bankrupt the US in short order. Whatever solution the dopes in D.C. come up with will involve a statutory cap on borrowing costs of the government and only US citizens can be so coerced.