Tag: Poverty & Economics

The economy sucks!  Yes, we are in a recession!  No, the fundamentals DO NOT look good for the economy to bounce back later this year (as per Bumbling Ben Bernanke).

As people over the past few years have lost their employment and due to that lack of income have also lost their homes, they have taken to moving into their cars, vans, RV’s, mobile camper trailers and anything up to and including a nicely appointed cardboard box.

Yes.  Even a person now living in their Camper-Van is not considered to be Homeless.  Their mobile vehicle is now considered to be a home.  Only in George W. Bushs’ America.

In George W. Bushs’ vision of America, this is OK. No problem.  Business as usual, you know.  We have the “HAVES” and the “HAVE NOTS” and never the twain shall meet, right? I mean, they will pull themselves up by their bootstraps if they REALLY want to re-join regular society.  Right?   (Insert much foul language directed at Neo-Con’s here).

The Bank of England has announced a £50 billion plan to help prevent the ongoing credit crisis that has seemingly gone world-wide since the problems became evident in the USA.

£50 billion is $99.82 billion in US Dollars.  That is a lot of money and shows that the underlying fundamentals of the world markets are, unlike what the Bush administration tells us, becoming more and more shakey by the day.

From BBC:

Banks will be able to swap potentially risky mortgage debts for secure government bonds to enable them to operate during the credit squeeze.

The Bank’s governor, Mervyn King, said the scheme aimed to improve liquidity in the banking system.

It should also increase confidence in financial markets, he added.

Under the scheme, banks will be allowed to swap their “high quality” mortgage debts for government securities.

The British Government is allowing banks to exchange mortgage debt for Government backed bonds.  Sounds like another bail-out at tax payers expense, wouldn’t you say?  Only, once again, the tax-payers aren’t the ones getting bailed out.

Weak economic reports and record prices for oil and gold are causing investors to move out of stocks this morning.

As I mentioned in my last essay, I was moving my money after Tuesday’s 417 point gain out of riskier investments and into safer plays such as bonds.  One can never time the market, but if you have been paying attention, the handwriting was on the wall, and now it the time, imho.