Monthly Archives: November 2008

Mother’s Milk and the Moochers

When the economy needs milk you feed the cow and not the bull.  The manufactors and consumers need cash to mitigate the upcoming economic depression and we should ingnore all the bullshit coming from Wall Street.  They are just loading up their suitcases before they move to Canada.

Watching the Auto hearings in Congress, I was struck by how thorough the questions where and thoughtful the debate.    After all they only asked for a business plan from the three auto makers.  But imagine if the same thoroughness was applied to Citibank.  How are they going to insure profitability?  How are they confident that the American people will every trust and buy their product?  How can we be sure they won’t ask for more billions in three months or three days?

All these questions must be answered by the automakers for a mere $48 billion ($25 granted and $23 currently requested).  But we don’t require the same for trillions already pledged to the financial industry.

The more that logic is applied to our current Economic problems, the more I realize the same people who couldn’t forsee the problems also have no idea how to solve them.

For all you Ayn Rand fans:

The Moocher’s are in charge so how can we expect them to get anything right?

Informal Survey

Make a list of ten close friends.  No particular order and don’t worry about leaving anyone out.  Take that list and answer the following questions.  Is the friend currently underwater on anything; house, CCs, heathcare costs, student loans, car/boat, or are they or their spouse recently unemployed?  Or have they escaped all those pitfalls but now see less money for retirement or outright postponement?

If this survey had been taken in 2006, most of our lists would contain zero in those situations.

I made my own list and it shows little unemployement but includes a distressed home, mutliple negative overall equity households and a few (but increasing) number of postponed/reduced reterments.

Feel free to post anonymous results below

What Infaltion ?

 

By Steve Goldstein
Last update: 8:10 a.m. EST Nov. 3, 2008
LONDON (MarketWatch) — Food distribution giant Sysco Corp. (SYY 26.20,+0.89+3.5%said fiscal first-quarter to Sept. 27 net income rose 4% to $276.8 million, or 46 cents a share, with sales up 5% to $9.88 billion. The company food cost inflation of 8.3% (emphasis mine) and a higher tax rate limited profit growth. Analysts polled by FactSet expected earnings of 47 cents a share.