Worst-case scenario is approaching rapidly (crisis growing at Warp 9)

Times of London ^ | 10/06/08 | David Wighton

[wmfights]

CDs are only as safe as the FDIC.

If the FDIC starts reneging on it's promise to insure deposits then all hell breaks lose.

As for real assets, their nominal value can theoretically fall by a factor of 10, if nothing is done about this. Because 90% of the world's money supply can just disappear.

This is why I'm wondering whether to retire debt or keep cash. The cash will decrease in value at the same rate as the real property.

But a better solution would be for everyone to realize the seriousness of the problem, stop playing the blame games and stop trashing bankers and finance, and then let the Fed save the banking system.

Oh come on, their hands are dirtier than the politicians. I don't expect the politicians to have any common sense. Bankers should have been smart enough to see that giving out loans with no money down to people with little or no credit would be a problem.

[Lurker]

No yeast at all?

There is a natural yeast on the peel of the apple. That's why it has to be unpasteurized. It'll ferment slowly, but it will ferment.

We bottle it. In fact I usually add some priming sugar before bottling. Then you end up with sparkling hard cider.

In the toasty warm house

We do ours in the house. It's quicker that way.

L

[CharlieOK1]

darn you Laz for reminding me of the scariest movie of all time. darn you to heck

[Constitution Day]

I must say...

[Toddsterpatriot]

The cash will decrease in value at the same rate as the real property.

If the money supply shrinks by 90%, your cash will become much more valuable.

[Mr Rogers]

If I find a recipe for stewed tumbleweed, I’ll invite you over. Everyone in the US could quit worrying about how to find grubs and eat at my place!

[hunter112]

I can imagine how the Europeans would be sneering at us and our troubles if they didn’t have a mess of their own.

I've been wondering about that. Euroweenies go easily into sneer mode, which is pretty much where they've been since it was evident that the Marshall Plan was working. Now that things are getting tough for them, will they deal with the muzzies in their midst? It's hard to sneer when terrorists are bombing your media outlets for insulting their moon god and his designated spokespervert.

Conventional 'wisdom' says that WWII was what ended the Depression, perhaps the war on islammunism will have the same salutory effect on Western economies, especially with oil as one of the spoils?

[GOPJ]

Looks like dems overplayed their “October surprise”...

[TigerLikesRooster]

Yes, it will kill both their enemy and friends. Let's see if this can kill Iran's mullahs.

[Roccus]

Don’t forget a towel.

[spodefly]

Looks like a bit of a bounce now ... up over 100 from lows ... can I stop panicking or is this only a moment of false hope in an ever blackening universe?

[wmfights]

Still I am wondering if there was a perfect plan to turn things around in the first place.

Yes!

Insure that the loans would be paid and let the market work. Also, let the banks holding the mortgage backed securities value them based on cash flow and not mark to market.

They didn't do that and have made a tough recession that's just getting started a lot tougher.

[redgolum]

Hey Laz, long time no see.

So, I have my Mad Max dune buggy all ready, my dog has a spiked collar, and my wife is wearing the chain mail.

Is it time yet or do I have to go back to work Tuesday?

[redgolum]

You usually see an angel right before you pass on.

Sir, if you are the angel I see before the train hits me, then I suspect the Man Upstairs has a much more twisted sense of humor than I had originally thought!

[autumnraine]

LMAO!

[hunter112]

My money's staying in the money market funds until the economy has worked its way through this. I've only got about 12 weeks left on this job, anyway. They're closing up my department at the end of the year. Hopefully I can find something else to do before the unemployment runs out the middle of next year.

I figure that when the biggest factor in my 401K's growth is the amount I put in every month, security of principal is way more important than banking on some risky stocks to pump up my account. And my account is pretty piddly at this time, I was only able to start re-establishing it this year.

I've become a master at learning how to deal with hard times.

[redgolum]

For the record, the buggy with the keg on the side is mine!

[Kackikat]

Wrong...because of the mark to market accounting rule by SEC the banks were unable to value those MBS’s...now that SEC has changed that mark to market there will be a better way to value those MBS’s.

Now if the SEC does NOT drop that exemption for the $40 loan to $1 capital reserve, then in a few years this will all have been for naught...it is time to get that RESERVE amount right. Everyone should be writing the SEC to revoke that $40-$1 exemption NOW....before they start lending again or we will be right back in this mess in a few years..

[wmfights]

If the money supply shrinks by 90%, your cash will become much more valuable.

I was thinking the same thing. If the mishandling of this mess makes the recession worse there should be some great long term opportunities. IIRC, the best thing to do in a deflationary cycle is to save.

[sanchmo]

Looked like I picked the wrong month to stop shooting up heroin.