Archive for the ‘Depression 2.0’ category

Chronicles Of Depression 2.0: #476: Rules?

December 19, 2008

Into the Economic Abyss

Many people — including yours truly — have looked to events of 80 years ago to try and figure out how things might play out in future. But maybe it isn’t necessary to go back that far. There have been other economic implosions in more recent times that might offer lessons that are just as illuminating. In fact, one of my regular visitors, Jason, suggested that I check out a blog, Surviving in Argentina, published by an anonymous Argentinean, which offers up some disturbing but absorbing accounts of life in that beleaguered Latin American nation. After reading a post written a few weeks ago, entitled “Despair in Once-Proud Argentina,” it made me wonder whether we will see an equally calamitous ending here.

If this account doesn’t make you cry, please do the rest of us a favor and kill yourself. You are too deluded to face reality — or you’re one of the sociopathic pathogens infecting this nation.

A few clips:

“I can’t explain it, and maybe I never will be able to[.] [. . .] But maybe you can start to figure out why. You have to wonder: Is all this really happening? Are our politicians so corrupt? Are we now really so poor? Have the banks really stolen our money? And the answers are yes, yes, yes and yes.”

And:

“Am I proud of what we did? No, of course not. Would I do it again? Yes, of course. You start to live by different rules.

Emphasis in the original.

With each post, I am trying to plant into your head in ways that cannot be avoided how absolutely horrific the breakdown of our advanced society can — will — be.

Because I don’t want it to happen to us!

“You can’t know what it’s like to see your children hungry and feel helpless to stop it,” she said. “The food is there, in the grocery store, but you just can’t afford to buy it anymore. My husband keeps working, but he keeps bringing home less and less. We never had much, but we always had food, no matter how bad things got. But these are not normal times.”

Emphasis added by me.

I paused while creating this post to read the comments for it. That caused me to add my own Comment, which is a fitting way to end this post:

Jesus Christ.

If I read one more whiny crybaby “Offer us solutions!!!” post, I’ll scream. OK, I’m screaming NOW.

WTF is wrong with you lot?

You’ve been given the very rare privilege here of seeing the breakdown of an advanced society into absolute horror. Some of you are thinking, unsaid, “Oh, it’s just those effing spicks, that’s how they are!” The other lot are thinking, “Hey, my gun will be my passport!”

Both of you are unfit for survival with what’s coming up.

Your “solution” — such as it will be — is YOU. What the hell do you think made this country, a pack of crybabies telling the proto-revolutionaries, “Oh, give us a solution EXCEPT overthrowing Old George”?!

Your money is shit.
Your gold is shit.
Your gun is shit.

Start there and YOU can begin to CREATE some solutions.

FA, thanks much for this post. I’m linking to it.

And so I have.

Update: For those who will stupidly dismiss this account because it’s from a “Doom site,” here’s the original source: The Washington Post!

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Chronicles Of Depression 2.0: #475: Know Future

December 19, 2008

Yeah, I steal from Max Headroom for that.

Incredibly, I missed this huge news. It came out Thanksgiving Day. I was off the PC that day and I think the next few days I was not in a Post More Doom Mood.

But this is serious. It’s from CitiGroup and it confirms what I’ve written here and here and here and here and here and here and here and here.

Citigroup says gold could rise above $2,000 next year as world unravels

The bank said the damage caused by the financial excesses of the last quarter century was forcing the world’s authorities to take steps that had never been tried before.

This gamble was likely to end in one of two extreme ways: with either a resurgence of inflation; or a downward spiral into depression, civil disorder, and possibly wars. Both outcomes will cause a rush for gold.

Emphasis added by me.

This is CitiGroup saying this. Citigroup!

More:

The world is not going back to normal after the magnitude of what they have done. When the dust settles this will either work, and the money they have pushed into the system will feed though into an inflation shock.

“Or it will not work because too much damage has already been done, and we will see continued financial deterioration, causing further economic deterioration, with the risk of a feedback loop. We don’t think this is the more likely outcome, but as each week and month passes, there is a growing danger of vicious circle as confidence erodes,” he said.

“This will lead to political instability. We are already seeing countries on the periphery of Europe under severe stress. Some leaders are now at record levels of unpopularity. There is a risk of domestic unrest, starting with strikes because people are feeling disenfranchised.”

Emphasis added by me.

Let that first sentence sink in:

The world is not going back to normal after the magnitude of what they have done.

Emphasis added by me.

What kind of world is it going to be?

A living fucking horror, is what.

And where I break with CitiGroup is over their assertion gold will be a “safe haven.”

Bullshit.

Sure, it’ll run up in terms of value against currencies — but gold is otherwise shit.

You’re starving. You have a wad of gold. The guy next to you is cooking Last Chance Stew, made out of rats he’s trapped, killed, and skinned. Your stomach has been empty for three days.

What fucking good is your precious metal?

worthless
Money and guns: Both worthless. Money is shit. And you’ll never have enough ammo. And do you really want to go to your grave having shot other people to death? It’s not like the movies!

Previously here: (gold)

Chronicles Of Depression 2.0: #419: Gold 2
Chronicles Of Depression 2.0: #409: Gold
Chronicles Of Depression 2.0: #407: $2K/oz.
Chronicles Of Depression 2.0: #248: Gold Coins

Chronicles Of Depression 2.0: #474: Cheer

December 17, 2008

Aw, in these dark times, I thought I’d post a happy, fun video that will make all of us get in the proper spirit of the times!

Watch it completely.

Enjoy.

Chronicles Of Depression 2.0: #473: Addicts

December 16, 2008

Downturn Spurs “Survival Panic” for Some in the U.S.

A paralegal, recently laid off, wanted to get back at the “establishment” that he felt was to blame for his lost job. So when he craved an expensive new tie, he went out and stole one.

The story, relayed by psychiatrist Timothy Fong at the UCLA Neuropsychiatric Institute and Hospital, is an example of the rash behaviors exhibited by more Americans as a recession undermines a lifestyle built on spending.

In the coming months, mental health experts expect a rise in theft, depression, drug use, anxiety and even violence as consumers confront a harsh new reality and must live within diminished means.

“People start seeing their economic situation change, and it stimulates a sort of survival panic,” said Gaetano Vaccaro, deputy clinical director of Moonview Sanctuary, which treats patients for emotional and behavioral disorders. “When we are in a survival panic, we are prone to really extreme behaviors.”

Emphasis added by me.

That’s a smart move: adding a shoplifting arrest to your background check!

“We don’t buy products, we buy feelings,” Vaccaro said. “We’re buying the anticipation of the feeling that we think that product or service is going to give us.”

I can see what my future will be like.

I’ll be surrounded by tens of millions of insane bastards addicted to spending who are going out of their fucking minds from cold turkey withdrawal.

Many of you will die.

Many more of you will need killing.

If you can’t adjust to little money, you’re no damned good to yourself — or the human race.

Chronicles Of Depression 2.0: #472: P$ychopaths

December 12, 2008

‘Financial psychopaths’ wreak havoc

With everything that has happened on Wall Street over the past 18 months, you’d think we had seen just about everything right? Wrong!

Two of the most remarkable frauds in the history of finance were exposed this week. They are just beginning to unravel and as such we don’t fully understand the magnitude of the crimes. But already I can tell you they are of epic, even cinematic, proportions. This is really from the “can’t make this stuff up” school of news. These two miscreants aren’t just every day corner-cutters, they are world-class whack.

Emphasis added by me.

Go to the article for the gruesome details.

Why did it take everyone so long to wake up the fact that people who want to swing around multi-billion-dollar dicks are not normal, are not sane, are creatures who should be locked out of the financial system?

A normal person comes into a windfall and it’s often more than enough. Someone who, for example. is a big lottery winner often doesn’t go around trying to pump up the volume on that. They know when they’ve been lucky, they know the value of money, they know themselves, and they’ve had a grounding in reality and in real, everyday life.

These people who pocket four-hundred million dollar bonuses from a Board of Directors they appoint — this is not normal greed. This is Ultra Avarice. This is Fuck You Sociopathology.

Previously here:

Ayn Rand: Discredited By Greenspan
Chronicles Of Depression 2.0: #351: Sociopaths
Chronicles Of Depression 2.0: #255: Jackals
Chronicles Of Depression 2.0: #238: Lottery
Chronicles Of Depression 2.0: #174
Chronicles Of Depression 2.0: #011

Chronicles Of Depression 2.0: #471: A-Word

December 12, 2008

Collapse of BCE plan fuels private equity industry concern

Fear of financial “Armageddon” is starving private equity of fresh funds, one investor warned on Thursday, after the collapse of the $41bn takeover of Canada’s BCE telecoms group marked a low for the industry.

The BCE deal would have been the world’s largest leveraged buy-out when it was announced in June 2007. Its collapse underlines how severely conditions have turned against private equity in the past 18 months.

The credit crunch has prompted banks to stop providing loans for buy-outs -– the lifeblood of private equity -– while market turmoil has made many investors incapable or unwilling to supply the cash needed for the equity portion of buy-outs.

As long as we are considering an Armageddon type of scenario, our hands are going to be tied for new funding in private equity,” Mark Boyle, head of private equity at the $140bn investment arm of Northwestern Mutual Life Insurance, told a conference on Thursday in London. “This environment has investment professionals so rattled they are thinking the unthinkable.”

Emphasis added by me.

These are the money professionals.

They see Doom.

Catching on yet?

Bank Collapse Watch: ALL OF THEM! AGAIN!

December 12, 2008

Jim Rogers calls most big U.S. banks “bankrupt”

NEW YORK (Reuters) – Jim Rogers, one of the world’s most prominent international investors, on Thursday called most of the largest U.S. banks “totally bankrupt,” and said government efforts to fix the sector are wrongheaded.

Speaking by teleconference at the Reuters Investment Outlook 2009 Summit, the co-founder with George Soros of the Quantum Fund, said the government’s $700 billion rescue package for the sector doesn’t address how banks manage their balance sheets, and instead rewards weaker lenders with new capital.

Dozens of banks have won infusions from the Troubled Asset Relief Program created in early October, just after the Sept 15 bankruptcy filing by Lehman Brothers Holdings Inc. Some of the funds are being used for acquisitions.

“Without giving specific names, most of the significant American banks, the larger banks, are bankrupt, totally bankrupt,” said Rogers, who is now a private investor.

Emphasis added by me.

Why does this surprise anybody?

More:

“What is outrageous economically and is outrageous morally is that normally in times like this, people who are competent and who saw it coming and who kept their powder dry go and take over the assets from the incompetent,” he said. “What’s happening this time is that the government is taking the assets from the competent people and giving them to the incompetent people and saying, now you can compete with the competent people. It is horrible economics.”

Emphasis added by me.

Welcome to Too Big to Fail 101. And now with all the forced mergers, we have Even Too Bigger to Fail!

Another stat:

Goldman Sachs & Co analysts this week estimated that banks worldwide have suffered $850 billion of credit-related losses and writedowns since the global credit crisis began last year.

Emphasis added by me.

That’s not even one-percent of the quadrillion lurking out there.

Some frank talk, finally:

“Governments are making mistakes,” he said. “They’re saying to all the banks, you don’t have to tell us your situation. You can continue to use your balance sheet that is phony…. All these guys are bankrupt, they’re still worrying about their bonuses, they’re still trying to pay their dividends, and the whole system is weakened.

Emphasis added by me.

Yep, gotta keep those bonuses flowing. No matter how fucked-up a job they’ve done and continue to do and plan to do in the future.

American taxpayer, drop your pants and bend over!

Previously here:

Bank Collapse Watch: ALL OF THEM!