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alstry (< 20)

FU Virus Update



March 19, 2009 – Comments (9)

MeadWestvaco to close plants in Louisa, Va., and Puerto Rico

Chemtura, U.S. units file to reorganize in Chapter 11

Pacific Capital Bancorp to cut 300, or 22%, of jobs

Fairchild Corp. files to reorganize under Chapter 11

This is just a sampling of just this mornings headlines.  It is clear that the FU virus continues to spread.  People who lose their jobs often have a difficult time paying their bills if they can't find a replacement job quickly.  Companies that file chapter 11 often extinguish their shareholders and stiff their creditors and vendors.

In other words, one FU can create another FU....not by choice, but by simply not having the ability to pay.  A quick example: the customer can't pay the retailer who can't pay the retailer who can't pay the shopping center landlord who can't pay the bank who can't pay the shareholders who can't pay their taxes.

If there is one benefit to the FU virus, it destroys money as the Fed prints on the other side by judicial pen stroke.  For example, before going into chapter 11, a company may owe millions to the bank.....and through the courts, that debt evaporates and the money disappears from the banks balance sheet as an asset. 

Poof!!!!  The money evaporates.

There is a multiplier effect to the FU virus because each time one contracts can infect many more.  Right now it seems to be spreading rapidly across the nation  and the world.  Until we find a is likely to keep spreading.

9 Comments – Post Your Own

#1) On March 19, 2009 at 8:03 AM, MarketBottom (28.47) wrote:

HONEA PATH, S.C. -- The Timken Company announced Wednesday that it will lay off 14 percent of its fulltime staff at the Honea Path facility.

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#2) On March 19, 2009 at 8:07 AM, alstry (< 20) wrote:

FedEx to implement more cost-reduction initiatives -

FedEx sees Q4 charges of $100M from cost cuts -


That is $100 million less to employees, vendors, taxes etc....

Thanks for the update MarketBottom.....and this is not a US only issue as it is spreading thoughout the world.


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#3) On March 19, 2009 at 8:14 AM, alstry (< 20) wrote:


Your blog this morning provides and excellent perspective how the FU virus has become a epidemic worldwide.

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#4) On March 19, 2009 at 8:18 AM, MarketBottom (28.47) wrote:


The US news is somewhat biased toward the positive.

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#5) On March 19, 2009 at 8:41 AM, alstry (< 20) wrote:

First-time U.S. jobless claims ease to 646,000 as continuing claims hit another record


That is 646,000 people told FU....646,000!!!!!  no kidding continuing claims hit a record...and those who have continued unemployed for too long are no longer considered you think they are still infected with the FU virus???

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#6) On March 19, 2009 at 9:06 AM, RHaganC (< 20) wrote:

how to stop the FU?  Once everyone is tired of being F'd, there is no one left to F, and the whole thing is just F'd and you start over


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#7) On March 19, 2009 at 10:36 AM, alstry (< 20) wrote:


That is a very good question....right now the solution is CASH....cold hard cash.

The issue is when enough don't have cash.....guess who they are coming after......

Ways to do it include:

1.  By gunpoint

2.  By taxing whatever you have 100%

3.  Confiscating Gold and Silver

4.  Converting Pensions, IRAs and 401Ks into a Federal Pension Plan

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#8) On March 19, 2009 at 11:56 AM, jesusfreakinco (28.18) wrote:

USD is being devalued - has lost 5% of its value as an index the last two days - cash is a good idea?


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#9) On March 19, 2009 at 12:02 PM, alstry (< 20) wrote:

I still havn't changed my position...just yet.  But I did buy a bit of silver yesterday.

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