Remember how I predicted that the global credit crisis would spawn a wave of forced buy-outs, mergers, acquisitions, and liquidations? Here is news of another one: Washington Mutual close to $5 billion deal with TPG, others. Be prepared for more mergers, many of which will be cases of “strange bedfellows” involving credit unions, pension funds, and perhaps even cities (municipal bonds). Derivatives contract defaults will indeed force some very odd partnerships and salvage operations. If managers’ only options are bankruptcy or buying out the counterparty to a derivative, then guess which they will choose?
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Frequent contributor KAF found this story abut a high speed successor to the Internet: ‘The Grid’ Could Soon Make the Internet Obsolete. FWIW, I think that “The Grid” was a poor choice of names, since it will cause confusion vis-a-vis the power grid. I think that “The Matrix” would be a better moniker.
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Craig suggested an article posted at The Folsom Telegraph: The Banking ‘Crisis’ …It’s a Big Club and You Ain’t In It
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Spot gold and silver seem to be resuming their bull charge, as expected. There will undoubtedly be a few more scary dips, but consider those buying opportunities in what is otherwise a secular bull market. Meanwhile, we read: Gasoline Prices Add to Record Gains. and Experts Predict Imminent Oil Squeeze. There are two was of looking at these events: A bull market in commodities, or a bear market in the US Dollar. But either way, the place you need to be is out of dollars! Speaking of silver, see: Fuel for thought: Quarter-a-gallon gas special makes cents