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[bob ford <bobford79 AT yahoo.com>]

Sorry, I should have looked for a better example of a bad scenario.  Let me 
try in my own words.  
If someone loses their job at a small factory;can't afford their rent, so 
they get kicked out of their house; Now, they spend the last of their cash  
and can no longer afford to eat.  They are on the street , hungry, and 
agitated.  Now, imagine that times 500,000 , in Philly,   X 350,00 in 
Pittsburg , X1.6 million in N.Y., and so on, throughout the country. This is 
called in common parlance "when-the-Schumer-hits-the-fan".  I ...bboford



----- Original Message ----
From: Lynn Wigglesworth <lynnw1366 AT hotmail.com>
To: homestead AT lists.ibiblio.org
Sent: Wednesday, September 24, 2008 3:49:36 PM
Subject: Re: [Homestead] Rats jumping ship


"Hedgefund", "leverage"...it means nothing to me. I'm investment 
illiterate. My investments have to be something I can see and 
touch...like a cow, or a fence to keep her in. No one has told me yet 
how, exactly, a crash would impact me. Bernanke said that if they don't 
do the bailout, unemployment will be higher, credit will be tighter and 
fewer people will be able to buy a house or a new car. Boo Hoo. My area 
of the country is already like that, and people deal with it. A big 
house and new car are NOT necessities of life; tighter credit, forcing 
people to live within their means, is the BEST thing that could happen 
to this country.

Lynn Wigglesworth

bob ford wrote:
> 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 
> 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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> 
> 
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