Monday musings
Just one question… If, per Hank Paulson, "taxpayers" are going to own stock in financial companies, where do I sign up to get the dividend checks?
OK, I concede that's a lame attempt at humor, especially on a day when Paul Krugman wins the Nobel Prize in economics. Brings to mind what Tom Lehrer said 35 years ago about political satire becoming obsolete with Henry Kissinger winning the peace prize.
Hey, it could be worse. We could be in Iceland. No doubt you've seen all the stories about how the country is essentially bankrupt after an especially Dionysian binge on derivatives. I wondered how long it would be before we saw stories about Icelanders stockpiling food and toilet paper. That day has arrived. "Bonus, a nationwide chain, has stock at its warehouse for about two weeks," reports Bloomberg. "After that, the shelves will start emptying unless it can get access to foreign currency, the 22-year-old manager said, standing in a walk-in fridge filled with meat products, among the few goods on sale produced locally." The CEO of the Icelandic Federation of Trade and Services sees shortages even sooner than that, the end of this week, if businesses can't get their hands on foreign currency to make purchases abroad.
Is this coming soon to a country near you? Even if it doesn't, Outstanding Investments editor Byron King sees a different trigger for shortages in the stores…
Our buddy Matt Simmons said the other day, "We should thank our lucky stars that people in other parts of the world are still willing to ship us oil in payment for dollars." And: "For as fast as the financial system melted down, the oil and gas network of the world could melt down even faster." Matt was referring to a run on the refined fuel storage tanks of the world: y'know, hundreds of millions of cars with an average of five gallons each in the tank, and everyone panics and decides to top off all at once. We'd drain the system within 24 hours… be unable to refill it in any conceivable (i.e., short) time frame…. and food supplies would run out — for lack of motor transport – within a week.
Meanwhile, the Associated Press has picked up the story of the National Debt Clock running out of digits, now that the figure has rolled over past $10 trillion. Funny how this coincides with the release of the companion book to I.O.U.S.A.
No, it's not funny at all. Forgot, economic satire is obsolete now.
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I don’t know about you but the Icelanders I’ve met are crazy mad people, able to consume vast quantities of Glug and it would not surprise me in the least to see some kind of Berserking Viking Jihadists on a rampage. I’d advise the Money changers to keep an eye out for really pale, blonde, blue eyed and big people tailing them.
Comment on October 13, 2008 @ 1:03 pm
While I fail the “survivalist” test*, I regard having a few cans of gas in the garage, a week or two’s non-refrigerated groceries and bottled water in the kitchen, and a load of firewood in the rack as the acts of any rational adult. There are people who rely upon me for food and shelter. I must be prepared to provide it to them even if the power is out for a week, the water-treatment system goes out, or the gasoline supply system is temporarily disrupted. Any or all of these can and do happen even in industrialized countries. It’s that simple and anyone who thinks otherwise is the major cause of panics and ought to be ashamed of themselves.
*Can you remember the needle on your gas gauge being below “half” for more than a day? You’re not a survivalist.
Comment on October 13, 2008 @ 1:27 pm
Last night in Victoria, BC, the power went out. We do get power outages periodically, usually after a heavy windstorm, but this appeared out of the blue, just as people were preparing their Thanksgiving dinners (Thanksgiving comes in October for Canadians). What was even more stunning was the fact that the power was out over most of the souther part of the island, with more than 250,000 people out of power for about an hour and a half - something that happens very seldom.
A day later, the specific cause of the outage was still unknown, the only answer being a “transmission problem” about 50 miles away potentially coupled with another problem on the mainland that occurred around the same time.
It impressed upon me the need to stay prepared in the event of an emergency - we had water stocks, a camp stove, and batteries … and what proved to be a godsend, especially with a nervous eight year-old - a hand-powered flashlight/radio that both gave her light and kept her occupied.
You can get small electric generators for around $300-$500 - enough to run a microwave, for instance, though you should use a power strip with a cutout to keep the power relatively clean to the Microwave.
I’ve also stocked up on about a dozen gallons of water. Part of this is common sense - it’s not unusual to get gale force winds on the island that can create spot outages from falling tree limbs - but part of this is my increasing conviction that we’ll see more of these “inexplicable” power outages in the near future.
Comment on October 13, 2008 @ 2:46 pm
It’s the end of the world as we know it and I feel fine.
Comment on October 13, 2008 @ 4:14 pm
Isn’t this crisis the kind of things Mormons have been preparing for?
Comment on October 14, 2008 @ 8:32 am
Isn’t this crisis the kind of thing Mormons have been preparing for?
Comment on October 14, 2008 @ 8:32 am
The Mormons, God Bless Them, have been preparing for a second coming of the Aryan Christ who shall convene somewhere outside of Independence Mo, whereupon some Lost Tribe Injuns looking remarkably like Frederic March will pay homage to him as the Quorum of Twelve apostles peer into their hat and conduct a lottery, following NBA Draft Rules , whereby it will be selected who shall leave and who shall stay for the cheap seats during the Tribulations. Ultimately, the new Zion shall arise and, oddly enough, it will be in Missouri where , while Treasure Seekin Joey was alive, the local Pukes made a sport out of hunting the Saints.
What makes me skeptical about the whole thing is why would anyone decide Missouri would be a suitable place for Zion? Great ribs and jazz perhaps but …Zion?
Anyone wishing a visual image of this remarkable event are advised to visit the Stalinist Edifice of the Church Office Bldg in downtown Salt Lake City where, off to the portside down a voluminous hall is a giant painting entitled “Jurgen Christ Ministering to the Frederic March Injuns”. I don’t know who the artist is but they have a remarkable imagination.
I mean no disrespect by this , because after all, as Ed Abbey said, “nothing that preposterous can be all bad”.
Comment on October 14, 2008 @ 12:26 pm
It’s going to be interesting when the international sex trade starts up in Iceland. At least the Russians could grow most of their own food, and Stunning looking Russian whores were 5 bucks, model quality women. I’m getting a ticket to Iceland next winter and bringing real money (the dollar of course, before the STD epidimic takes hold (usually about two and one half years after financial armageddon)
Comment on October 14, 2008 @ 5:29 pm
Yeah baby, slap that icelandic ass. Smile for the camera!
Comment on October 14, 2008 @ 5:30 pm
When are they posting the new Reckoning - St Swithen’s Day??
Let’s go!
Comment on October 14, 2008 @ 6:15 pm
This Icelandic crisis is probably the last time (other than the Russian financial crisis) when you can get quality white women cheap. St. Swithen’s day here I come.
Are you offended? You have got a lot to learn about real financial panic when people are at risk of starving (not just losing the 401k), grasshopers. If you didn’t prepare maybe you’ll be my bitch instead ( or your sister). Wake up to what is happening around you before it is too late.
Comment on October 14, 2008 @ 6:32 pm
The tenor of today’s “bloggings” tells me it may be time to seriously consider packing up my ruck, grabbing retroactive birth control instrument, gassing up the ole MRAP and heading for my “retreat” at KILL ZONE PEAK up in the “None of your freakin’ business where they are” mountains…’Cause you all are just gettin’ too too weird. Times are not even remotely close to being bad…yet. However, should this insane trend toward nanny state socialim continue? Heh, heh, well times will get worse, oh yeah! Believe it.
Comment on October 14, 2008 @ 8:13 pm
I am basically abondoning stocks completely at this point. Not because of the price declines, those are natural and normal. It’s the crazy goverment seizures of publically traded companies that is freaking me out, wiping out stockholders with no warning by government fiat. It’s that the deal in stock investing, then it’s time to run far away from stocks. The government is destroying confidence in owning stocks.
Comment on October 15, 2008 @ 12:51 pm