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.