“1929 was for pussies…”

Or so said Jon Stewart this evening during his commentary on what I like to call Behemoth Black Monday. Surprisingly, today the House of Representatives failed to pass the biggest bailout in US history. Perhaps because a large percentage of Americans who have no savings, investments or any direct relationship with Wall Street whatsoever contacted their congressional representatives in angry protest, wondering why taxpayers should bail out the so-called fat cats? Ah, there’s nothing like a 777.68 drop on the Dow to brighten your day.

WaMu died last week as Mike McGonagle demanded it should. Reno Ignoramous rings in my ears because for more than two years on this blog he’s been talking about a house-of-cards ponzi-scheme leading to a meltdown of epic proportions. I took it all in as certainly possible and watched with presence as the pieces started to unravel, but I could not possibly have imagined how vividly accurate his predictions were until now as we see it unfold in front of us.

And now, in a world where McDonalds is more credit-worthy than the US Government, Bantering Bear, another proven soothsayer on this blog, has suggested the possibility of riot. Sound extreme? Don’t dismiss the possibility.

Foreignpolicy.com tracks failed states worldwide. Each year, more and more countries drop into the red zone. When economic health reaches a certain low point, any little disaster can tip an entire country into chaos. This year the US was a comfortable light green on the map, measured before our latest financial unraveling… but what’s disturbing is how much of the world shows as yellow, orange and red. Soon, we may be joining them.

I believe the US has reached the end of its superpower reign. Don’t call me unpatriotic… the emperor simply has no clothes. That’s it.. Many years ago I got through college by majoring in history, and if there’s one thing I remember, it’s that all great empires inevitably get too big for their britches and collapse from within. The British, the Dutch, the Soviet Union, us… and so many others before.

It is what it is.

You have no idea how many realtor sales meetings I’ve sat through where the bottom has been proclaimed, the end is near, activity is up, NAR says this, Lawrence Yun says that, the media is negative, so ignore them all, go forth and sell with confidence because now is a great time to buy… I’ve seen so many of my colleagues nod their heads, toast to continued success and drink the Kool-Aid, chanting that the glass is full as we march unwittingly towards Jonestown.

But thanks to you all, even if I didn’t fully understand the horrors that might unfold, I at least knew not to totally consume the Kool-Aid. Which means I get to live another day, more fully prepared, and not so shocked as  the majority of the population might be.

Yeah, sure, a few people with means will still buy houses for reasons that work for them. But as the rest of the market freezes, it will be fascinating to see how this whole mess plays out. (RI? BB? Care to make any further predictions?) Hmmm, maybe it’d be a good time to become a government investigator… I hear the FDIC is hiring.

Geez, this is heavy. I need a beer, and I bet you do too.

So don’t forget to join us for Beer with Bloggers this Wednesday at Tanamera from 5:00 -8:00 pm. And don’t worry if you’re flat broke… we may be too by then, but it’s totally free! Mike will be there, and I betcha he’ll have at least one piece of hot, local gossip to share.

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55 Responses to “1929 was for pussies…”

  1. billddrummer says:

    To cash buyer,

    I think one of them is a cook at a restaurant in Spanish Springs.

    Nice guy, but not a ‘qualified RE professional.’

  2. Marla says:

    Well, all of 5 days ago I questioned how much longer it would be before AIG announced it had blown through the $85 billion it got two weeks ago and would ask for more. Today AIG got another $38 billion loan, on top of the $85 billion.

    I guess another $440,000 week at the spa is in order for top AIG executives.

    The stench coming out of this is getting worse by the day.

  3. billlddrummer says:

    To Marla,

    When you’ve got an $85 billion secured line of credit and more assets, why not advance more money? It’s still secured, isn’t it?

    Oh, but perhaps the $3 trillion of market cap that’s evaporated in the past week could have been used to buy some of those assets?

    Houston, we have a problem. There’s no money around to buy the assets we need to sell. Can we get some more money just to tide us over until the markets come back?

  4. BanteringBear says:

    Marla posted:

    “I guess another $440,000 week at the spa is in order for top AIG executives.

    The stench coming out of this is getting worse by the day.”

    Not only did AIG cancel their current spa retreat, they’ve also canceled an upcoming event as well.

    We are in the midst of an historic shift in this country. When things turn ugly, people love to assign blame, and as multitudes of individuals find themselves unemployed and quite literally hungry, they’re going to be calling for these elitist’s heads. And rightfully so.

    The fact that many CEO’s are earning many tens of millions per year, sometimes in excess of $100 million, is despicable. NOBODY is worth that. There is only one reason for this: greed. These pigs are about to find out what happens when you leave nothing behind for the masses. As desperation sets in, people will want their heads to be served on a platter, and the politicians, fearful for their own standing, will do their best to see that it happens.

    With such horrific economic conditions in store, I don’t see how the Dick Fuld’s, Angelo Mozilo’s, and Stanley Oneal’s of the world can escape the punishment they so rightfully deserve. They sold their companies, employees, shareholders, and ultimately the country, down the river for their own personal gain. There will be hell to pay, for sure.

  5. Gary says:

    BanteringBear, do you suppose that the next great growth industry will be security and bodyguards for America’s fallen financial executives? I’m guessing that the moat builders are seeing a spike in business as well 😉

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