Day: February 23, 2008

The Credit Collapse–The World’s Bankers Revert to Saying “No”

A recent news article titled Dresdner Rescues $19 Billion SIV, Follows Citigroup illustrates the severity of the global liquidity collapse. Note that the article mentions that the K2 SIV had no “direct exposure” to securities backed by subprime or midprime debt. But yet the fund failed dramatically. This adds credence to my assertion that the world’s entire credit market is essentially broken, and that despite frantic attempts by the central banks to inject liquidity (BTW, another $25 billion was just injected the Fed on Thursday), most of the major financial institutions are starting to crumble. In the very near future, …


Two Letters Re: Thoughts on Overseas Retreat Destinations

Mr. Rawles, In looking through your great web site I can’t tell if you’ve ever addressed the issue of having a non-US retreat. There are some notable characteristics of the USA that make it a less then optimal location in a TEOTWAWKI type scenario. I think specifically of very heavy reliance on personal vehicles and fossil fuels, a general ignorance about growing food, preserving food, raising livestock. There is a tremendous demographic heterogeneity (“diversity”) that in a crisis situation would become a very sore spot and possibly a source of violence. Also a Federal government that has shown an inclination …


Odds ‘n Sods:

Eric found this: Fed Issues Gloomy Economic Forecast. The article begins: “The Federal Reserve on Wednesday lowered its projection for economic growth this year, citing damage from the double blows of a housing slump and credit crunch. It said it also expects higher unemployment and inflation. “    o o o RBS sent us this from a Tampa, Florida newspaper: In home foreclosure, if it’s not nailed down …    o o o I couldn’t help but notice the New York market’s closing spot prices for platinum ($2,169 per ounce), gold ($944.60 per ounce) and silver ($18 per ounce). This …


Jim’s Quote of the Day:

"Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my …