As California goes...so goes the nation.

peilthetraveler

peilthetraveler

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2009/07/05/MNSD18HAT0.DTL

Looks like the media is finally starting to pick up on how bad the economy is. I've been seeing news about us on the front page of the paper every day now. I still think its being reported mildly and i still dont see the media using the word "default" yet.

I had also read this in the sac bee

http://www.sacbee.com/topstories/story/2000837.html

Basically says that the goverment layoffs and furloughs will cost the sacramento economy half a billion dollars. I guess that would drop the citys GDP by a little over $1,000 per person.

Sounds like a death spiral to me
 
It's a failure of government from the left. Many of the comments I've seen are blaming the g
Governor and Bush! Also the Governor is looking like a strong man nowadays, he set a clear course and California is on it, the voters said they don't want taxes raised and that's it.. rarely do I feel like the voters are heard as well as right now...

The Fed gov is also governed from the left so it will fail a little later on... the thread title is right on... man, that is going to be something to watch... we live in interesting times sad to say...
 
i'm still trying to figure out how i can just make sure i don't squander the good fortunes i've had in the past few years of trading when it all collapses around us, but yes it will be interesting.
 
The great society of Lyndon B. Johnson and the modern day

left is fixing to go up in a cloud of smoke.

Your cash ain't nothin' but trash.
 
yeah cash being the trash that it will turn into (ie russian collapse, argentine collapse, weimar republic)

and the likelihood of gold not retaining it's value in transactions due to it simply being so long since it was used as a real medium of exchange. what is there to do? what would you do with 100k if you had it in hundreds in a safety deposit box?
 
thats a great question mother and I think the EXACT one anyone with assets should be asking.

my feeling is that cash now is better put to use in investments in businesses like farms and fresh water production and energy production than sitting in a safe deposit box ...these businesses should continue to produce real goods and services that are essential moving into the future, and their ownership shares and profit dividends should self-adjust with whatever currency is the prevailing medium of exchange.

just leaving currency sitting in accounts left to the possible risks of that currencies valuation seems crazy to me, at least for big chunks of assets that arent needed to be liquid.
 
I had relatives that made a fortune 1930-1955.. they bought farms at the all time bottom. Tenant farming might become the hot sector. I can just see the conversation, Idiot says "so Eight, what do you do for a living?" Eight skips the part about trading financial instruments via TA, he knows nothing is going to ensue except some idiot telling him he's going to lose everything including the wife and dogs... Eight: "I have tenant farms"... Idiot: "You mean like share croppers? Are they all black people?" Eight: "no, they are not all black people, they are all just people that are willing to work or I kick them out" Idiot: "'So these farms, are they all in tip top condition?" Eight: "I do what I can with the upkeep, times are hard you know" Idiot:"So you are kind of a slumlord with some slaves working to just feed their kids?" Eight: "Did I mention that I daytrade financial instruments with TA?"

I'm not that worried about a collapse, government collapse doesn't mean societal or economic collapse necessarily, major, major speed bump maybe... but it would be good to be hedged with some actual business other than trading that is good in bad times...
 
You must log in or register to reply here.
Back
Top