Sunday, September 14, 2008
Time to poke my head...
out of the man-cave called my apartment and comment on the state of the economy. It's fucked. We know this, of course, with the debt spiraling out of control and banks and lenders and investment firms failing left and right. It may finally be the day of reckoning so often mentioned in this space and elsewhere in the gloom-and-doom books and blogs and emails and podcasts to which I subscribe. I'd describe all the plans I've been making and the various schemes I've invented to extract myself from the coming financial carnage, but as I mentioned to Scott, we are all fucked. When I say "we," I don't merely mean myself and all my friends, or even the nation. I mean the entire fucking planet.
Now, the reader (as if I had any...) would exclaim that can't be true; someone (and somewhere) will benefit from all of this, but I fear such a sea change in the way America and the financial world operates that even the best prepared people will be sunk, or at least suffering along with the rest of humanity not presently living in North Korea or Cuba. Can you imagine the loss of revenue from small nations dependent on tourism? Jamaica may nor care about the collapse of Lehman Brothers. but she will care when the New Yorkers stop visiting the island because no one can afford it. Switzerland may not care that gas is nearly 4 bucks a gallon near my apartment, but they do care when UBS takes a beating because Americans stopped paying their home loans. This was a national scandal, no matter how the Swiss tried to downplay it.
So what does all this mean? I have no clue. I do know that end is coming where people have will have no more faith in how the world financial system works. Like the bank runs in 1929, when this realization occurs, the world financial markets will fall, and the dollar will go the way of other "fiat" currencies: dead as the fucking dodo. I do know this: my situation is the opposite of the canary in the coal mine. I'm the mine boss watching all the little birdies drop dead. I'll also watch the miners die; I'll watch the supervisors die; Hell, everyone associated with the mine will die before I die. However, if the shit does hit the fan and I get covered, then there was no hope for anyone anyway.
One of the topics I will not ( cannot?) discuss is the notion of going someplace else or where one should put his money. Aside from the belief mentioned above, my deepest fear is the end of the notion of private property in the short run. Some degree of nationalization is probably going to occur, and those who own gold, oil, etc. will be screwed royally. Lest anyone think this would never occur, please research how America confiscated gold ( and made illegal its ownership) in the 30's and come back.
Back? Cool. Also remember that the nation rationed gas, food, metal, rubber etc. for WWII. Anyway, I have no good plan for what comes next except pay down my debts in any manner possible, and wait. This is not fun, and both my parents are dependent on medications that my not be available. I realize I sound a little off the wall, and I hope it never comes to that point. Realizing it might causes my stomach to churn.
As is often the case, writing this post has caused the flood gates to open, and I will write more tomorrow.
Now, the reader (as if I had any...) would exclaim that can't be true; someone (and somewhere) will benefit from all of this, but I fear such a sea change in the way America and the financial world operates that even the best prepared people will be sunk, or at least suffering along with the rest of humanity not presently living in North Korea or Cuba. Can you imagine the loss of revenue from small nations dependent on tourism? Jamaica may nor care about the collapse of Lehman Brothers. but she will care when the New Yorkers stop visiting the island because no one can afford it. Switzerland may not care that gas is nearly 4 bucks a gallon near my apartment, but they do care when UBS takes a beating because Americans stopped paying their home loans. This was a national scandal, no matter how the Swiss tried to downplay it.
So what does all this mean? I have no clue. I do know that end is coming where people have will have no more faith in how the world financial system works. Like the bank runs in 1929, when this realization occurs, the world financial markets will fall, and the dollar will go the way of other "fiat" currencies: dead as the fucking dodo. I do know this: my situation is the opposite of the canary in the coal mine. I'm the mine boss watching all the little birdies drop dead. I'll also watch the miners die; I'll watch the supervisors die; Hell, everyone associated with the mine will die before I die. However, if the shit does hit the fan and I get covered, then there was no hope for anyone anyway.
One of the topics I will not ( cannot?) discuss is the notion of going someplace else or where one should put his money. Aside from the belief mentioned above, my deepest fear is the end of the notion of private property in the short run. Some degree of nationalization is probably going to occur, and those who own gold, oil, etc. will be screwed royally. Lest anyone think this would never occur, please research how America confiscated gold ( and made illegal its ownership) in the 30's and come back.
Back? Cool. Also remember that the nation rationed gas, food, metal, rubber etc. for WWII. Anyway, I have no good plan for what comes next except pay down my debts in any manner possible, and wait. This is not fun, and both my parents are dependent on medications that my not be available. I realize I sound a little off the wall, and I hope it never comes to that point. Realizing it might causes my stomach to churn.
As is often the case, writing this post has caused the flood gates to open, and I will write more tomorrow.
