I find it interesting how strong people cling to their beliefs. I was speaking to a single mom today. She was telling me of her plan to move to Florida and how much better it was going to be in Florida. She gushed about the availability of property, how cheap the land was, and how easy it would be to get work.
The same thing happens here on our blog about Precious metals. You notice that a lot of folks spend time on my Youtube and here telling me about how great PMs are, especially gold. So, I started checking around a bit. I do listen to what folks say, even if I don't agree.
Here is a telling article in the Financial Times.
http://www.ft.com/cms/s/0/d9614eca-d2c3-11dc-8636-0000779fd2ac.html?nclick_check=1
To paraphase: The private bond insurers are too risky to re-capitialize.
The underlying net of security is giving way. The basic assumptions that you can insure your losses are failing. It will be riskier to lend money for debt based assets, such as mortgages and capital expenditures. It can't be reflected in interest rates, because the borrowers are under no compulsion to pay back the money. The insurers are going to bankrupt out of paying the money. The bankers are going to be stuck with huge amounts of worthless mortgages
Out of curiously, I looked up the housing stats for the woman. I like housing stats, they give you a pretty good idea of how well an area is doing. Well... it's the highest foreclosure rate in the United States. The economy is primarily based on tourism where she wants to live. As you may have noticed, not as many folks are doing Disney world these days as last year. Finally, the crime rate in the area she wants to live is rising. Of course, she blamed me pointing out these facts and casting doubts. Sometimes I wonder why I even bother, but here I go again.
Ontario California has the first Tent City, just like the Great Depression. It formed about 6 months ago. It's coming. Did you see this place? Have you heard about it? Or are your blinders on?
http://fourstory.org/pages/stories/081-interview-tentcity.htm
http://www.latimes.com/news/local/la-me-tentcity3feb03,1,5945483.story
Here is a graphical representation of where I think we are today. Our economy is the old man, the wall behind him is the insurance failure and banking failures.
http://www.dvdbeaver.com/film/DVDCompare6/deepimpact/144.55-old.JPG
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1 comments:
Sadly, I no longer believe a word my government says!
I am white, middle class. I am not radical, but I no longer trust my government, after all the lies over the illegal invasion of Iraq, after the unanswered questions over the London bombings, and in the U.S. over 9/11.
I am not alone in this feeling of distress at no longer being able to believe what they tell us, and I am also beginning to doubt information being given by the BBC, which up until now has been a bastion of real journalism and balance. Our country is being taken over by corporations and our Republic is disappearing! We claim to be exporting democracy around the world, but we are loosing it in our own country!
We are heading towards a 'big brother' state, and we are being led there through fear and lies a as I search on the internet the name Rothschild keep popping up! I cannot afford PM's but thank John keep up the good work
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