It is worth reading the latest essay in New York Magazine by Jim “Mad Money” Cramer on the sub-prime lending crisis. No booyah’s or sound effects in this article. I hear some commentators going on about this circumstance as a normal equilibration of the economy. But after reading Cramer’s editorial it is hard to believe this is just a “correction”. Sounds like a train wreck.
It is hard to fathom how the massive upset in the mortgage market will play out for those of us engaged in chemical manufacturing. Anything that depresses home construction and mortgage lending is sure to slow down orders for raw materials in some fashion. The rat is moving through the snake. This disturbance could eventually effect those remote from the mortgage business.
Cramer is clearly an expert of some sort in the finance field. But it is good to remember that it was finance experts who fabricated the house of cards that got them (us) into this problem in the first place. This supprts my theory that we have too many MBA’s in the world.
Lamentations on Chemistry 
What does this have with stew? Besides, nobody here in Minnesota cooks booyah in the summer.
http://jameshowardkunstler.typepad.com/clusterfuck_nation/
tulip market
Gulf War II created some $1.7 trillion in imaginary money so far and dumped it overseas. A small fraction of that was good for “Whip Inflation Now!” and 18% interest rates during the Ford and Carter administrations. The NINJA (no income, no job or assets) mortage scam was abut $1.2 trillion up front.
Debt is an Accounting asset. Bonds were let to invest in the mortages. Said money was put back into NINJAs, and round and round (less user fees and broker commissions). I’ve seen estimates of $15 trillion created out of vacuum. What came out of nothing must go back. The US dollar is really worth about $0.28 and the Dow_Jones should be no higher than about 6000. (Or look at total national obligations of ~$65 trillion debt. That could be interesting as petro-euros).
How does Washington bail out its buddies’ NINJA financial black hole when said sum exceeds annual GNP? The textbook solutions are 90+% Federal taxation, hyperinflation plus stagflation, start a massive war, or the Great Depression.
Anybody up for a national equity loan? No income, no job or assets are required!
Well John, Ya got me there. So, I wonder what the spelling of Cramer’s Booyah really is, anyway.
So, Uncle Al is a Kunstler fan too. I like the statement- “I’ve seen estimates of $15 trillion created out of vacuum. What came out of nothing must go back.” The conservation of cash law.
With the cooler weather now (there was frost on the pumpkins Saturday morning) it’s now booya season. This link may not last long, but it list a number of booya sources in the Twin Cities. My local supplier, Wildwood Bowl, had a sign advertising it, being sure to mention “No Road Kill This Year! Honest!”
Hi John, This link is password protected.