Holy Smokes

[cottonpicken]

This is as depressing as this mornings weather.

http://p.castfire.com/castfire_v2.swf?file=http://serve.castfire.com/video/26078/26078_2008-09-25-215549.flv&sh_id=26078&guid=fcieq&api=http://api.castfire.com/&skin=default&image=http://serve.castfire.com/video/26078/26078_2008-09-25-215549.jpg%3F1222395472&relatedThumbSize=0&related RowHeight=0&relatedItemSpace=0&relatedFontSize=0&r eferer=http%3A%2F%2Fwww.google.com%2Freader%2Fview %2F&backcolor=0x000000&frontcolor=0xFFFFFF&lightco lor=0xFF9900&hasSubscribe=false&hasRelated=false&u sefullscreen=true&bgcolor=&rev=2701

[jensend]

that is depressing. i don't think many people realize the scale of what's happening. you have to wonder about the social ramifications of this whole disaster. things could get very rugged unless governments at least acknowledge what is happening and offer some sort of plan to get through this. when paulson asks for $700b and is taking that much out in smaller sums over the previous month you know it will cost a whole lot more.

[agstar77]

That was truly depressing, hence the word depression. If Mr. Harper thinks we are immune , he's living in another world or he's lying to save his job. Our system is not the same but we will get caught in the downdraft of the U.S. WE send 80 % of our exports to the U.S. The U.S. owes Ten Trillion, that will have to be repaid. The day of reckoning is coming.

[wilagro]

Ahhhhhh!!! The "Rapture" is near. How fortunate for Harper, Bush and all. The problems that the USA is having...nothing to do with Bush policies and five or six years of continuous WAR and its costs while maintaining a viable economy at the same time????

War usually requires sacrifice on the home front with rationing, sacrifice and tight controls over spending...obviously not considered by Bush et al. No wonder they are in trouble and WE are soon to be in the soup too.

It maybe too late, but we could kick out these trouble makers controlling our government and run in a new slate to straighten out the mess. I believe that the USA will be doing this for sure. Perhaps WE could follow their lead.

[wilagro]

cottonpicken: That web site is VERY busy...best to try it later after midnight.

[cottonpicken]

The end game is pretty scary no matter how you cut it.

Maybe not for farmers.

Keep in mind that "sub-prime" and "debt" also equal money created.

The balance sheet has to balance.

If a bank loans someone 500,000 dollars,someone else is getting paid 500,000 dollars.

Now if money wants to find a home where does it go?

A stagnant/collapsing stock market?
A bond market that is no where near the inflation rate?
A residential releastate maket that is collapsing?
A mattress?
A hard asset thats been going up?

Kind of like the laws of electricity.

[bucket]

Money is going into land as it will pay a return or not lose as much. That why you see Wildhorse, Agcapita, Northumberland, Assinibioa Partnership.

Funny thing is there is less farmers to make them money and the guys left are not going to farm for free.

An investment in utilities is a good place to park money as well.

[Fransisco]

Just watched the video. It's good at tugging the heartstrings but really doesn't tell us much.

I understand the housing bubble, I understand Freddie and Fannie, I understand the CRA. But it is starting to look like this is bigger than just a few states where the bubble really happened. I was reading this morning how the Irish stock market is in free-fall and there is a rumour of a 300 euro bailout for European banks. And grains are down again right now in the overnights.

I have a hard time believing that the "world" economy is turning down just because of housing in the US.

[TOM4CWB]

C.P;

"The balance sheet has to balance. "

Who says?

When a bank lends a Billion Dollars... where does the $10 million per year interest money come from... who created that?

So after 20 years... and $100 Trillion lent out... now is collecting say on average $7 trillion/yr in interest... where does this currency come from...???

If currency ISN'T created out of thin air... and in ever increasing amounts... the system collapses!

Confidence in a system... that simply depends on printing zeros on a piece of paper... with some number in front... just take a look at Japan... they have being doing this for decades!

What exactly is China, India and Russia doing?

Where did all their money come from... or the increase in black oil from $30-100/bbl? Where does this money come from for increased commodity payments?

Spending Trillions

[TOM4CWB]

C.P.;

Does an economy grow atthe rate currency is lent out?

A Combine that cost $24,000 in 1975... now costs $240,000. Cost to operate... up 10X too! DO we grow 10X as much? NO!

It is all about zeros... and who is ALLOWED to create them... then who is allowed to spend them!

[jensend]

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/3141428/Germany-takes-hot-seat-as-Europe-falls-into-the-abyss.html

this is really shrill for ambrose evans pritchard. if the world is as panicked as he claims it's all over and we're into global panic.

[cottonpicken]

You have it Tom.

"if a currency isnt created at ever increasing amonts the system collapses"

In a nutshell that is it!

Thats the system we adopted the day we went off the gold standard.

And now we pay the penalty written in the unstoppable laws of economics.

And im really afraid of how large the penalty may be.

[bucket]

Not to be a downer cotton but does this mean everything I own is worthless? And everything the bank has an interest in is overvalued to the point that I am worthless?

What are the best strategies for times like this - having boatloads of cash or tremendous debt?

[TOM4CWB]

Bucket;

Productive asset management is what keeps us alive economically. Human resources execute the plan.

The combination of effective; risk management... asset utilisation... and a capital debt ratio that does not exceed gross income ... keeps most farms economically sound.

IE: If you gross $1M... better not have more than $1M in debt to be safe.