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alstry (36.27)

How Asset Values Can EVAPORATE...OVERNIGHT!!!!!!!

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June 30, 2009 – Comments (6)

Many businesses in the U.S. are struggling with excess capacity. From autos to airlines to houses, "there's a landscape of industries and sectors that are recognizing that they're going to need to scale down," says Nancy L. Rose, an economist at the Massachusetts Institute of Technology Department of Economics in Cambridge.

With no plant to process the birds they raise, local chicken farmers have no income to pay off debts. Months ago, the hundreds of cavernous, metal-and-wood chicken houses in the county were worth at least $200,000 each when filled with chickens, farmers say. Now, except for flies and old feathers, the structures sit empty and are virtually worthless.

 http://online.wsj.com/article/SB124631125369670273.html

 

In a world of excess capacity, the cost to maintain an asset often becomes higher than the economic value.  At that point, the asset is essentially worthless.  We are seeing it in land, office buildings, shopping centers, hotels, houses, warehouse buildings, factories, and now chicken houses.

This is a very foreseeable impact of Zombulation......

 

WARNING:  For those of you not trained in accounting.....BEWARE OF BOOK VALUE!!!!!!

 

 

6 Comments – Post Your Own

#1) On June 30, 2009 at 9:22 AM, alstry (36.27) wrote:

MORE SHUTTING DOWN IN AMERICA....What do you think these assets are worth now?????

A rallying cry can be heard across the country, from the swanky streets of New York's SoHo to the tiny town of Randolph, Kan.: "Save our post office!"

As the United States Postal Service, weighed down by a crippling multibillion-dollar deficit, shrinks its operations, post offices across the country are on the chopping block. Each year, hundreds of postal operations shutter, but this coming fall could be the single biggest consolidation in Postal Service history.

Over the next three months, more than 3,200 post offices and retail outlets -- out of 34,000 -- will be reviewed for possible closure or consolidation.

 

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#2) On June 30, 2009 at 10:28 AM, rofgile (99.43) wrote:

In Ohio, they might begin closing public libraries-

 

Governor Strickland's proposal calls for a 30 percent cut from library budgets on top of the 20 percent cut libraries took at the beginning of the year.

"Fifty percent is catastrophic. Twenty percent we are gritting our teeth and we are managing to get through hoping for better times but I don't know if we will be able to deal with 50 percent," said Linda Swartzel, Waynesville Library Director.

 

 

- When state budgets start cutting libraries, that's too much.  The one place where you can freely educate yourself, not consume (have to buy more stuff), can hang out (without needing to buy a coffee), and can often get movies for free too.  

 Sad! 

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#3) On June 30, 2009 at 11:05 AM, gunark (58.37) wrote:

Hey Alstry your apocalypse better come soon. Watching my SRS and FAZ holdings slowly deteriorate is starting to hurt.

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#4) On June 30, 2009 at 11:11 AM, alstry (36.27) wrote:

qunark,

Be careful with those puppies, you are playing with nitro once you understand how they work.

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#5) On June 30, 2009 at 11:22 AM, jddubya (< 20) wrote:

It's unfortunate that the USPS can't compete with private sector delivery companies. I suspect that they could if they really really trimmed some excess 'fat' from their operations.

I mean, come on! Less than 50 cents to send small correspondence in as few as 2 days? Less than 5 bucks to sent an 8x11 package? From CA to NY? It's not a bad deal at all.

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#6) On June 30, 2009 at 11:28 AM, alstry (36.27) wrote:

jd,

It is not just the post office...

it is now:

Hospitals

Car Dealers

Shopping Malls

Office Buildings

Airlines

Hotels

Parks

Retailers

Technology Companies

Chicken Farmers

Grain Farmers

Cattle Farmers

Lawyers

Architects

School Teachers

College Professors

Economists

Finance Workers

Just to name a few

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