I recently had a consulting client ask me if I thought the credit crisis was over. Over? No way. Even after a year of credit contraction, we’ve only seen the first wave of the credit crisis. The entire global credit market is still spiraling into the abyss. The recent steep downgrades of MBIA and AMBAC (the folks that insure municipal bonds) are the latest red flags, showing another aspect of the problem. MBIA has been downgraded five grades to A2, and they are on “negative watch”. That is the term used when a forced liquidation is expected! The bottom line is that world’s credit pool has dried up. Mark my words: Many of the same problems that crashed Bear Stearns–and forced a huge taxpayer-funded bailout–will spread to municipal bond issuers, regional banks, and community banks.
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Eric sent us this bit of news from England: Government asks stores to stockpile food to overcome hauliers strike
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Reader Ben L. mentioned this humorous piece: The Gospel According to John (Moses Browning)
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SF in Hawaii recommended Kevin Kelly’s Streetuse Blog. SF’s comment: ” This blog is loaded with clever ideas that will inspire any survivalist.” My comment: After reading the Streetuse blog, as well as the Farm Show 30 year compendium book (previously mentioned in SurvivalBlog), you can see how important it is to have your own oxyacetylene welding rig and plenty of stored welding gasses and welding rod. Welding skills will make you the local “go to” guy (or gal) in hard times.