Longer and Deeper-Just Can't Get No Satisfaction
For a few months, some have been warning you about a potential storm coming more severe than most think. Many laughed and screamed blasphemy......but if we don't prepare.... prepare to be washed out to sea.
Ford is cutting production 15%. Ford's revenues is over 1% of GDP. That is a big number for those mathematically challenged. Think of the downstream impact on a 15% cutback on Ford's employees, suppliers, advertising, trucking, ect....
MarketWatch this weekend has an article about the rising tide of bank failures. On Friday, the City of Vallejo declared BK. Jefferson County AL wants to default on its SWAP obligations alleging fraud by JP Morgan....otherwise Jefferson County may go BK....three times bigger than Orange County.
Soros is saying it is going to be worse than '73. Mobility in America is coming to a crawl. Amreican Airlines is cutting back on planes and service...firing thousands of workers. Other airlines going bankrupt. Miles driven by vehicles falling off a cliff even though our population is growing. CA gas tax revenues falling even though gas prices through the roof.
The above is when we have low reported unemployment.....imagine the effect later this summer when the job cuts really kick in and more and more debt defaults.
Then, this weekend in Germany, our superstar buddy Warren pipes in with the following:
BERLIN (Reuters) - The United States is already in a recession and it will be longer as well as deeper than many people expect, U.S. investor Warren Buffett said in an interview published in German magazine Der Spiegel on Saturday.
He said the United States was "already in recession" and added: "Perhaps not in the sense that economists would define it" with two consecutive quarters of negative growth.
"But the people are already feeling the effects," said Buffett, the world's richest man. "It will be deeper and last longer than many think."
Buffett also renewed his criticism of derivatives trading.
"It's not right that hundreds of thousands of jobs are being eliminated, that entire industrial sectors in the real economy are being wiped out by financial bets even though the sectors are actually in good health."
Buffett complained about the lack of effective controls.
"That's the problem," he said. "You can't steer it, you can't regulate it anymore. You can't get the genie back in the bottle."
Yes folks, the genie is out of the bottle.....and he just can't get no satisfaction.
Pretty Soon....We will have to start looking for a Hero!!!!! Who could that be?