Sunday, June 29, 2008

SAR # 8181

The financial system is collapsing due to bad debts
and we're turning to the Government for help?

Worth Less to Worthless? Citi closed Friday at $17.25, having lost two-thirds of its value in a year. These are our financial geniuses leaders.

New Math : It was a problem in translation. Apparently 500,000 really means 200,000 in Arabic. As in the Saudis are actually going to up production by 200,000 barrels a day, not the oft reported half million. A one quarter of one percent increase in world production levels. Wow.

Lack of Gravity: Please explain why the price of British houses can rise, even a tad, when their house sales are off 50%.

Delta Adds Fuel Fee To Frequent-Flier Tickets: In the latest fee to hit the airline industry, Delta Air Lines said Friday that it planned to begin charging a fuel surcharge of up to $50 for booking frequent-flier tickets under its awards program.

Sharecroppers: Most US cities are facing shortfalls in sales and real estate taxes receipts at the same time costs for supplies and energy are increasing. This forces a reduction in city services and maintenance. Meanwhile the population will tolerate no tax increases yet insists that the mayor or city council "Do Something". God knows what, prayer seems to be the only affordable option and it hasn't worked so far.

Confidence Building: After panicking customers and resturants across the nation, Federal officials now suspect tomatoes were not the source of the salmonella outbreak.

Directions, No Map: One reason we get confusing reports about the credit debacle, energy prices, housing problems and so on, is that we ask experts. The experts then explain in terms of their area of expertise - whether it is relevant or not. Checking with reality shows that leading up to the our current problems, the investment bankers had no idea what they were doing, the real estate markets were clueless, the Fed led us happily into another bubble, economists commited fraud regularly, and the leaders of the oil community didn't know oil was running out until they heard the slurping sound. Maybe we should give the experts a rest and try a little common sense.

Game, Set, Match: When Ilargi is wound up, he gives great rant. He was really, really wound up today.

Me, Too! Barclays is warning its clients to expect a worldwide financial collapse now that the Fed has lost all credibility. They expect a "nasty environment" that "is going to be very negative for financial assets." Particularly endangered are those who have taken investment advice from Barclays.

Long Division: Only 12.5 million vehicles will be sold in the US in June, a 25% decrease from last year. GM will sell 25% fewer than last year, while Ford and Chrylsler will each drop 30%. Honda's sales are up. America used to make the world's cars, now they can barely make the car payments.

Porn O'Grpah: Shady Sources Drying Up.

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