Saturday, February 28, 2009

The Ice Age: A Time for Renewal

Are we looking at a fundamental change in the economic climate of the planet? Have the warm balmy days of easy credit, built on easy energy, ended? I wonder.

Who will survive? The supersauruses of the world? The Citi Banks, the AIGs, the GMs? Or will it be the scrappy little mammals, the little well run companies exploiting new economic ecosystems, that are best suited to a new climate?

The government thinks that it is in the best interest of the world to throw some fur coats on the lumbering swamp reptiles so that they can survive as the glaciers descend out of the mountains and over the once hospitable plains. And the government may indeed keep them alive, for a while. In the process though they retard the growth of a system in which the new mammalian companies may actually thrive.

The fur coated artifacts of another era demand much in the way of sustenance. What little food is left in this new colder world is given to them by the government. Barely able to move in the increasingly difficult climate, the feds conclude that the best way to keep the dinosaurs going is to feed them more of what little food resources there are. That will keep them around until the glaciers again retreat and the sun is warm once again. Meanwhile the little mammalian companies, the companies that will thrive if just given the chance to compete, begin to starve. Some die.

Soon the dinosaurs, despite their very expensive fur coats die anyway. The world has changed and it is not their world any longer.

The world is not GM’s or AIG’s or Citibank’s any more. It belongs to as yet unknown, better adapted companies that will be able to deliver goods and services in new and more efficient ways. And the world will prosper once more. So long as the government doesn’t kill everything in its effort to save the dinosaurs.






Warren Buffett is someone for whom I have a great deal of respect. I may not agree with him all the time, but he is intellectually honest, and the below article is an example of this honesty. Of course he did make some very bad moves in 2008 and he had to address them. But he could have bobbed and weaved, and he did not.

Warren Buffett Tells Shareholders He Did "Some Dumb Things" In 2008
http://www.cnbc.com/id/29441086


Absolute Return Funds: “delivering bond-like returns but carrying equity-type risks.”
http://www.bloomberg.com/apps/news?pid=20601212&sid=aHISy61O4hCc&refer=home


Cramer Is A Gold Bug?
http://www.youtube.com/watch?v=1hxpusdlNe0

Remember the depression continued for another 7 years after this. But a great piece of history.

Pro-inflation Propaganda
http://www.youtube.com/watch?v=99Dzdc1H0wM

Monday, February 23, 2009

Is this it? Are we headed into the abyss? We're going to find out this week.

It strikes me as I walk along the sidewalk of my neighborhood how many people know how dire the current situation really is. My bet is not many.

Sure they've been hurt by falling stock prices. They also have seen their home values shrink. But I don't think it's really hit yet, the full magnitude of the situation we are dealing with, I mean.

Americans can't imagine what it would be like to be hungry. I am happy to say that I really don't. I have seen hard times, but there was always food. What if the land of SUVs and home equity lines was hungry, really hungry? What would they do? I am afraid to say.

Today we saw the market push lower than it's been since 1997. So if you bought an index fund at this time in 1997 you would have nothing but a loss to show for it. Buy and hold is dead. At least for those who die. Vampires will probably get their money back.

As always, below I present some dots to connect, that won't waste your time.


-Nicksuno

George Soros Predicts Apocalypse, Has Dinner
http://reason.com/blog/show/131828.html

Glen Beck. I want to not like this guy but he is actually speaking truth to power. Not an easy thing.

What Happens if China Stops Buying Our Debt?
http://www.youtube.com/watch?v=ndoJHxX3cKA&feature=related


Gerald Celente is an interesting guy. His analysis of commercial real estate is insightful. It's long, but again, it is not a waste of time.

Gerald Celente: A Warning: When People lose everything, they lose it.
http://www.youtube.com/watch?v=9nJ7LM3iyNg

Eastern Europe is in God awful shape, Mark Faber's analysis. By the way listen to the last 30 seconds with sharp ears.

Marc Faber: Eastern Europe is Collapsing
http://www.youtube.com/watch?v=kLiZ0JO7DME


AIG Asks for Another Bailout. Remember you pay for this...
http://www.cnbc.com/id/29353282

Saturday, February 21, 2009

And so we push through the resistance and into another world?



Today the market continued it's downward move, finishing 100 points down to end at 7365, or 1.34%



We narrowly escaped a ten year low for the Dow. Today...



Below, are 5 pieces for you to chew on as you contemplate your moves for next week.



1. A piece by Gary North examining a quickly retracted article in Britain's Telegraph. Apparently all Europe needs is 25 trillion dollars to save it's banking system.


The Looming Collapse of European Banking

http://www.lewrockwell.com/north/north689.html



2. I saw Rick Santelli's impromptu call for a Chicago Tea Party live. It made my day. The first link is his initial rant. The second is his response on Kudlow and Co. to the Obama administration's take on what he said. Rick Santelli has been one of my favorite people for a long time. Enjoy.



Rick's Revolution

http://www.cnbc.com/id/29283701

http://www.cnbc.com/id/15840232?video=1041856849&play=1



3. Soros is not always my favorite guy but he is worth paying attention to.



Soros sees no bottom for world financial "collapse"
http://www.reuters.com/article/newsOne/idUSTRE51K0A920090221



4. FYI. How bank nationalization might happen. Pay attention to the last bit. Who still owns shares in Citi anyway?
http://www.reuters.com/article/newsOne/idUSTRE51K0A920090221

5. Ah gold. God's money.

Gold tops $1,000 an ounce
http://money.cnn.com/2009/02/20/markets/gold/index.htm?section=money_latest





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Nick Sorrentino is the Editor of The Liberty and Economics Review and CEO of Exelorix.com a social media management company.