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[bob ford <bobford79 AT yahoo.com>]

Lynn, philisophically, I might agree.  But, I don't think you are really 
considering the consequences.  Without giving our credit markets stability, 
the following can occur.  
 
This is a blurb from a brilliant very successful person, whose opinion is 
held in high esteem by a quite a number of people.  I'm not saying that this 
will occur, as he is not, just that it is a possible scenario........
 
The Fed is in a box of their own making.The greatest danger to the system 
are not the banks at the moment but the hedgefunds.Their structure is 
leverage and will not get the preferential treatment from the Fed as the 
banks do.As long as the Fed takes in the toxic loans from the banks at its 
face value ,things will work out as long as the foreign Central banks accept
the dollar by buying treasury paper.
 
If there are no takers the dollar will sink
to new alltime depths,this will make the commodities double and triple priced 
in dollars.However the hedge funds are stuck in illiquid investments and will 
blow up if the commodities start to advance in a big way as you saw the price 
of oil on the spot market take a huge jump of 25%.If more commodities
are going into the same direction because the dollar is sinking ,the next one 
to watch is the Yen.This carrytrade has the making of a Tsunami when this one 
is starting to unwind.
 
Gold will rise like a rocket and there will be no Central bank stepping in to 
sell their hoard in order to stabilise the price.
Following that scenario ,you will see a run on the banks after the ATM 
machines shut down.We will see a bank holiday with the ensueing chaos.
My recipe is to have at least three month cash on hand and the rest 
to have in gold coins.Stockmarkets will be shut as well and martial law will 
be instituted. My take is,be prepared , cities will be death traps
 
 
back to me:  While you might be isolated, do you not have family or friends 
that are dependent on constant trade to provide them the necessitites of 
life.  I can joke about sitting in my lawn chair with a Kalashnikov rifle, 
but that would be devestating for me and millions of others.  I also have 
parents, brothers, and a few friends, who are even more dependent on the 
system than I am.  If we all moved, today, to "the country" , then, "the 
country" would cease to exist.  Some of us must live , at least part of our 
lives, in congested, densely populated cities.  Some of us might be nice 
people who don't want to see the primitive sides of our fellow humans so 
exposed.   ....bobf
 
 



----- Original Message ----
From: Lynn Wigglesworth <lynnw1366 AT hotmail.com>
To: homestead AT lists.ibiblio.org
Sent: Wednesday, September 24, 2008 2:46:52 PM
Subject: Re: [Homestead] Rats jumping ship


Mine is not a popular opinion (I don't think) but I think the government 
needs to step back and let the chips fall where they may (I heard 2 
Congress people say that today!). People who participate in risky 
behavior need to take the consequences; our whole economy is a house of 
cards with little real value behind it. It needs to come down; if I had 
money in the system, I'd get it out, too. Come the revolution. I'm 
looking forward to it.

Lynn Wigglesworth
Tioga County, PA


bob ford wrote:
> You've probably heard the old saying about "rats jumping off a sinking 
> ship", the smart set generally advise ;  "follow the rats"
> 
> This is unsettling:
> 
> 
> Money-market mutual funds see record withdrawals in week
> 
> http://www.marketwatch.com/news/story/money-market-mutual-funds-see-record/story.aspx?guid=%7B0CAD8A20%2D0080%2D4847%2DAEC9%2D6C0C6C62B997%7D
>  
> 
> 
>      
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