THE ECONOMY-’WHERES FIRST’: Money News (money news.newsmax.com) of 11/11/08 brings us this story “Thain: Economic Environment Recalls 1929”. Herein, John Thain, the Chief Executive of Merril Lynch & Co opines that “We’re going to be in a very difficult economic environment for a significant period of time.” and … that the environment more closely resembled 1929, the advent of the Great Depression than recent slowdowns.
Bloomberg.com of 11/11/08 brings two articles to our table today. The first is “Fed Defies Transparency Aim in Refusal to Disclose (Update2)”. Here it’s noted that “The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.”
The second article, “ Bonuses for Wall Street Should Go To Zero, U.S. Taxpayers Say”, points out the very great disparity between the publics view of how executive compensation should be treated and that of the Fed Gov. Taxpayers want executive bonuses eliminated, not just reduced as the Fed Gov indicates. “Even really sober people are saying this is the worst financial crisis since the Depression, and they’re saying bonuses are just to be reduced?” says retired merchant marine Patrick Amo in Seattle.
“AIG: Bailed out again” reports CNNMoney.com of 1/10/08 (money.cnn.com). AIG, as a result of the credit crisis, was on the edge of collapse in September and the Fed Gov stepped in to bail them out to the tune of $85 billion. A short time later, $37.8 billion was added in the form of a line of credit with another $ 20.9 billion provided in a debt purchasing facility. The AIG folks complained that the conditions imposed by the Fed Gov for these monies were too punitive so the Fed Gov made significant changes in the conditions by way of a new $150 deal that would take the place of the old, punitive deal. Ahhh, relief.
Opinion Insert: It might be beneficial here, to remember that the folks that led us into this swamp called “the financial crisis” are essentially the folks that are being asked to lead us out: and plan accordingly. It might also be wise to note that a number of those folks considered among the oldest and wisest within the investment community have observed that none of the “do’ers” within the bail-out elite seem to have any real idea of exactly what they’re doing or how it’s going to play out.
Our advice for the prudent home is to observe and prepare.
AGRICULTURE-THE SMALLEST SHALL BE ’GREATEST’: Energy Bulletin (energybulletin.net) on 11/06/08 presented a small but vital heads-up via Michael McCarthy, The Independent, that brought to light that “Two billion bees-one in three of Britain’s honey bee colonies-have been lost over the past twelve months, the worst losses ever seen in the UK. Yet the causes are unclear…”
Honey bees provide the majority of all of the pollination of food crops not only in the UK but around the world. We hear at PrudentHome that CCD (Colony Collapse Disorder) within the U.S. has as yet no clear cause and that there’s a movement afoot to provide training for individuals (hobby?) to learn small scale bee-keeping for the home plot. We’ll looking into this and will get back with PH readers shortly.
Until the end of the week then, keep your eyes on the horizon.
“…there’s a movement afoot to provide training for individuals (hobby?) to learn small scale bee-keeping for the home plot. We’ll looking into this and will get back with PH readers shortly.”
I’ll be looking forward to learning more about this. Thanks!