Let the Chips Fall

Ever wonder what WWIII would look like? Most folks would say 1960's style nuclear missles, and associated primitive weapons. But if you pay attention you can see that the weapons being used are economic, informational, and psychological.

It will be alright Cheryl. As our government continues down it's current path and with the elections only weeks away it will not be long now that our once capitalist society will be socialized. Everyone can meet at the trough. With the brainless and the greedy running the current system with impunity we, the taxpayers, will be the the ones to financially suffer dearly. Hope is on the way though. It is only a little more than 91 years and 2.5 months until the next millenium. By then most of us here now will not have to worry about the corrupt entities currently surrounding us now.

The collapse of America. As I stated before, turn your paper assets into real ones now, while the world still accepts these federal reserve IOU notes. There is no money to pay for any of this crap. The only way is to debase the currency.

Cheryl one thing all the global markets need is conficence. And the traders no matter if it's Tokyo,Sidney,Singapore,Paris and London they're looking for it. Still the root cause of all what has happened,the depressed housing market,the freewheeling execs of Freddie and Frannie need to now to be exposed. One a problem is exposed,the root problem that is,is only when the problem can be solved. Of course new ones are going emerge: like the credit swaps. With the downturn I've been watching things locally: like what retail businesses are going to take a hit. Or how will the new casino fair in this unstable climate of uncertainty. When a town like Vicksburg has a retail economic envoriment its matter of time before a business or small business is affected. So some of my friends we're wondering which business is going to close in Pemberton Mall. How is CBL Aassociates its parent owner fairing this unstable,uncertain climate. Adter all during this downturn with shoppers contracting from the stores,how are the Real Estate Investment Trusts fairing in this downturn climate. I wouldn't be surprise that small towns outside of NYC about the size of Vicksburg are taking hits too. As for me I'm waiting to see how this senate bill is going to generate consequences. Will they be good or bad? that's the 64 million question every trader wants to know. Honestly even in this presidental election I noticed how uncertain it is.

This economic situation is the preamble to something much bigger. Take heed Americans because we are being sold down the river. We are not going to have a "typical" recovery. Sure, we will have some type of recovery eventually but we will have lost so much by then that it will matter very little. We have to move back to a real "main street" mentality and get our rear ends out of the Wal Marts, Targets, BJs, Coscos, Best Buys, Ganer Mountains, Office Depot, Home Depot, Lowes, etc. Can you NOT SEE the problem we have created for ourselves? We (as in "we the people") have created this mess. Sure, our Congress was complicit in the debacle at hand but WE were the workhorses behind the mess. Want cheap dinnerware? Wal Mart Want cheap clothes? Target Want cheap lumber? Home Depot Want cheap hunting gear? Gander Mountain Want cheap paper? Office Depot THE LIST GOES ON AND ON AND ONE America! We cannot have our cake and eat it too! We have sold out! We sold out to the CHINESE and they want some of their investment back. Learn how to can, hunt and live independently for a while. Not matter what soothsayer tells you otherwise: it is necessary.

"Let the chips fall where they may". That is precisely what I begged my senators and congressmen to do. Let the fools fail, as fools should. There will be immense pain to feel by the honest and prudent people anyway, so make sure the scoundrels feel it too. These ill conceived bailouts are only putting good money after bad, and insulating the scum who precipitated it in the first place. Let's all take our medicine, and gut it out. The days of conspicuous consumption are, hopefully, over and done. Let's relearn the difference between wants and needs, and remember that an economy that produces nothing, and is instead based on buying trash on IOU's is a false economy. People have laughed at me for years for predicting this would happen. This is one last laugh that I could have done without.

Cheryl, you are so right! More of the same bad medicine that got us in this mess in the firet place. With one percent interest, no down payments, stepped up payment schedules, home equity loans, what did people expect would happen? Now lets make the people that worked hard and acted responsibly pay the bill for all the ones that contributed to this disaster. Yes, you sound like a bear, but a pretty smart one.

The outcome of the election will have the most profound impact on the economy If Obama wins we can expect: 1) Shorter work weeks to keep unemployment down. 2) Big government programs to provide us with everything we need. 3) A large drop in worker productivity, due to a lack of incentives. 4) Massive tax increases to pay for everything. 5) A deepening recession, perhaps depression If McCain wins we can expect: 1) Further reductions in taxes to stimulate the ecconomy. 2) Limited government interference in legitimate commerce. 3) Close scrutiny of new government spending. 4) Prosecution of executives who have been involved in illegal financial activites. 5) Hopefully, we will see the endightment of polititions and public officials for accepting bribes in conjunction with their involvment in this financial fiasco.

Emergency Rescue? Isn't the patient supposed to be stable after the rescue? Everything I see points to DOA. Don't tell me it will take some time to improve. It took some time to resolve the last epidemics, yet thousands died. Same story here. There is a lot more suffering to come. A lot more than the next 6 months. Get out your quarantine signs and masks. The epidemic is out of control.

Please, please, please; think for a second. They are trying to save a market and not trying to fix the problem. There are some trying to give money to the thief to stop them from stealing remember that greed was what got the markets crazy. (now I remember taking God out of the equation means no morals) The other one is trying to keep houses at current prices. People are tired of their bad investment their houses are not worth what they bought them. I know people that are currently stating that they are not going to pay their mortgage any more. Not because they can not pay but because it do not make sense to pay for a home that is not worth what you pay. Like paying 60k for a Chrysler when you can buy a better car. They marketed homes for profit without regulating real value and price gouging never applied to housing. Reality has ho hit sometime. There is a big group of people that can never buy a home at current prices. The elderly have to move to trailer homes and the poor to the projects. Obama will bring socialism and for a little while it will look like it will solve the problem but that never last. Anything that can solve this now will explode later. Invest in commodities and utilities that it will stay afloat.

"Let the Chips Fall" is the title? Didn't I just read an article by Cheryl one week ago telling the American people that they were to ignorant to understand financial markets and we HAD to pass the bailout bill or the markets would tank and the economy would go with it? Didn't you claim that the bill could stabilize the markets? Now you are all of a sudden some sort of free marketeer wanting the hands off approach from tweedle dee and tweedle dum in Washington? No way. I don't buy it. You can't jump on our band wagon now. We (the American people) were right and knew that we had to have a little economic pain come our way for how we have been living. We knew giving tax money to banks wouldn't help. You chided us for that thinking. Shame on you for helping politicians hand feed tax payer money to poorly run banks and calling Americans stupid for resisting it. Have some journalistic integrity and at least admit that you were wrong. Admit that you know the $700 billion will simply end up stuffing the pockets of the politically connected while the economy continues to unravel.

Cheryl, I thought from the title of this blog that you had finally seen the light. You were one of the people that were pushing the hardest saying that we have to do something. I have two issues with that. One I share with Cody Willard. We cannot say that this is a free market, and then get gov't involved when things go bad. It is not the governments job to bail Wall St, homeowners, Main St, or me from bad decisions. The government cannot fiscally sustain itself based on taking money from me and giving to fools that don't have the business sense of a doorknob that leveraged themselves 40 times on a market that some were predicting a fall in as far back as 5-7 years ago. This is nothing more or less than socialism. If I choose not to invest my money in these poorly run companies, who do you and the gov't think you are to tell me and my children that I have to give my money to them? Two, there is nothing that the government can do that will have an effect on the market!!!!!!!! The bottom line is that too many people just woke up to the fact that these companies cannot sustain themselves leveraging over and over against the same set of assets. It is absolutely ridiculous that a company can borrow and package and raise capital 40 times worth their assets. Can I borrow 4 million dollars against my house valued at $100k, NO!!! Why not, because I can't make the payments!!! Neither can these companies, despite their shell games and that is why they are falling apart! Todays business model of borrowing money from several different sources against one asset is nothing but an upside down pyramid scheme that eventually has to come unravelled.

We are truly doomed. America will survive but in name only. Our time as an independent, capitalist, free society is coming to an end. Big Brother has arrived with an outstretched "helping" hand, and in return we give him all our liberties, livelihood and possessions. Most will do it gladly in order to keep living a comfortable lifestyle, but there will be a sorrow so deep that my soul aches thinking about it. The party's over. Last call. Time to get your coats and head for the exits. I hope you have found a friend, because it's going to be a long, cold night.

Bill in NYC had the same thoughts os myself. I remeber you being on O'Reilly and saying this needed to pass to help us all out like it was the cure all. Now that you got your way we the middle taxpayer become have become the bailout victims. Oh yea and I heard they may need another 500 billion because 700 billion may not be enough. Especially if they spend it like AIG for $400,000 week-end parties. Thank-you wall street, congress and Paulson for this mess.

Could this be the beginning of a powershift? Powershift is a term that Alvin Toffler gave to one of his books I read almost ten years ago. POWERSHIFT: One way a powershift can first happen: the ballot box. The seething anger is out there with the fact the that we Americans are angry over this bailout. Last night's debate for example further excerbated the anger becouse both politicans failed to show leadership on the issue. They dodge with thier code words. Now with the markets in turmoil and even the blowback could now hit the Democrats since the revelations are coming out. Powershift could be that incumbents in both parties have set themselves up to be overturned,unemployed. The Presidental Election is beginning to reflect the global market with its own turmoil.

CC, I have been noticing that there is nothing but negativity out there in the marketplace in the last couple weeks. I think one should "buy at the sound of cannons and sell at the sound of trumpets." As a long term investor, now is the time to get involved. We effectively have a global central bank now that are rewriting the rule book. I expect them to put all their facilities to work in order to get the wheels back in motion. It isn't gonna happen overnight and plenty of people are afraid to get involved but the upside vs downside of the S&P at sub 1,000 is compelling in my opinion.

Hey CC...I thought you said we had to pass this bailout. Wrong-o! Doesn't look like it did anything to calm the markets and I doubt if it will. Time to start throwing some "execs" and our "representatives" in prison. Those who are against this bailout are not as dumb as you think.

I would like to see the Swiss bank accounts of all these wall street executives after they get their hands on the $700 billion bail out money. Sec of Tres most likely will have the biggest account. Polititions need to start listening to the people they represent and not give tax dollars away to wall street. I am so sick of this. My vote next month is going to who ever is running against the polititions that is in office, I do not care if they are a dem or rep.

Lets see, 85 billion to fix AIG, and they throw a big party for themselves with some of it, then we fork over another 37.5 billion to make them even happier. Is there something wrong with this picture? One has to wonder if it would have been smarter to give every person in this country their share of the one trillion that is set to bail out the big boys that helped bring this about. That should have been around $3000 for each person, which would have done a great deal of good for a family of four or six people. A check for 12 or 16 thousand might have taken care of a big share of the problem and the benefits would have trickled up to the lenders. Granted , some people would not need their checks, but some of those being helped with the present plan do not need help either, and the benefits to the big institutions will probably never get to some of the people really needing assistance. You have a great show, Cheryl, and I hate to miss it.

Well Cheryl the greatest problem to low interest rates given by the FED is that its too little too late in averting a serious crisis globally. Given that "selfish" conclusion, risk aversion by banks and other financial institutions rules the day and the lines of credit needed by American business, government, and individuals will be held in limbo dispite the FED financial intervention. In this bank derived limbo, the FED's rate cut will do little to calm the fears of once bitten, twice shy bank excutives. You are right on your account that the "Chips" (blue and otherwise) will fall and fail to prop up a coming "Ill-liquid" fiscal disaster brought on by poor business practice, lack of leadership from government agencies, and "well" disciplined fical responsiblity of a small portion of Americans. Actually I thought of the "Rhyme of the Ancient Mariner" as a metaphor for our staggering, ever drifting economy. The abatross of mismanaged credit markets is going to hang around our necks for quite a while until we as a credit driven individuals pay penance for sitting on a laurels and not demanding more from our representative government. Regards Robert

I hope this trend of no short or long term memory is going to change for the people of The United States. Maybe we are confused or perhaps we understand all too well what is coming down the line. Going back to super low rates (a contributing factor)may indeed grease the credit wheels again. But for how long? How long will it be before banks cry foul and turn off the tap again demanding another bailout? It seems that the government and the financial system are the two places where common sense is banned. The amount of money that the average investor stands to lose is miniscule compared to the billions that could dissapear from large investment firms. This notion that there are companies that are too big to fail is a slap in the face to the Free-Market Economy. It is also a slap in the face to every small business that has ever failed in the history of business. Also, has anyone else noticed the increased use of the word "Nationalized?" For those not paying attention "Nationalized" is "Socialized" painted in the proverbial lipstick.

[...] October 9, 2008 by Noonien Cheryl Casone seems to think “we’re going down to one percent interest rates like we had under Alan Greenspan,” according to her blog post, Let The Chips Fall. [...]

Cheryl, The problem is we are in the age of mouse button clickers. Everyone expects instant results. The Treasury actions will take time to work and the last big one has not even started yet! But now everyone is saying it is a failure? Several are saying the government should stay out of it. Fine. Close down the Federal Reserve, the FDIC and the rest and watch what happens.

Cheryl Dear, Last night I was watching David Ansman. He and Tracy Byrnes should have blogs too here by the way, but I caught his last few minutes of Saving the Economy on Scoreboard. He came up with something that needs to be done:INVESTIGATE THE CORRUPTION OF GREED AND GRADD IN CONGRESS. Rep Harold Waxman has been doing thes corporate investigations wasting taxpayers money. Why not look at the graff in his own congressional backyard? It makes plenty of sense.

.....remember that fraud phrase...buy when blood is running in the streets..well, it has for 250 trading days in a row now.....we have had near capitulation for 3,000 Dow points now......honestly, I would not be surprised to see the Dow at 1,000 now....there is no end to this carnage.....there is no bottom.....I hope my own predictions are wrong...I hope people realize that they may have to work till 90.....retirement seems like a fraud, a hoax.....course if there is a rally, it could rise 1,000 points in a day the way things are going...I have never in 40 years been so negative with great reason....

Housing AD proclaiming: Get a mortgage, a home equity line of credit and get a credit card all at the same time! A guy on the Dave Ramsey Show bemoaning how he decided to get into the housing market and 'bought' 14 houses (no doubt with no doc/no money down loans). Both of these are just a couple of the incongruous items I've heard on the FOX Business Channel in the last year. Oh, I forgot to mention the housing market in Newark New Jersey doubling in value in 27 months. The property pictured in that piece looked like they were built in the 1920s. I'm afraid you're right, even if I'm not in debt my life savings are going to be diluted in order 'save' those that are. The problem with this equalizing of outcomes is that in the future no one will save, expecting those in government to take care of them. And how can the governement do this. It can't! Welcome to the banana Republic of America.

I think the Fed and the Treasury need to capitulate. As long as they keep throwing more and more money at the banks it is in their best interest for the banks to wait for them to play all their cards before they start lending to each other. Enough already with the Fed and The Treasury. They need to tell the banks that they are on their own.

“IMO, the reason the global financial situation has deteriorated is the various players have reacted incorrectly to the housing collapse, and this is because they fail to view what has occurred as a mania. If one doesn’t accurately assess the cause of the problem, solutions are bound to fail. It’s like this Washington; people were gambling, on a scale unseen in the history of man. And treating failed gamblers like they are victims can only make the situation worse:” quote by Ben Jones Housing bubble blog

"steve", Please tell me that was sarcasm. You can't be that ignorant.

Yes, let the chips fall, but I am insisting on a PERP WALK, one that is broadcast on all channels, even cable. I want to see each and every perp of this debacle cuffed and stuffed. That includes, and should start with congressmen (and women) who enabled this disaster. The public needs to see the government acting now, and putting those folks feet to the fire for what they have caused nationally, and internationally. Get those cuffs ready and go!!!!!

Cheryl, I'd be willing to lose all of my investments if it meant that we did was is Right, and not what is Easy (i.e. socialist bailouts). I've been beating this drum since Greenspan lowered the interest rates to 1% to bail out his previously created bubble: ABOLISH THE FED. I suggest everyone read up on its unconstitutionality and what our Founding Fathers thought about it. You will be amazed. Until media business networks learn to study History in addition to their Economics background, nothing will ever change. Wanna know why fiat currency is a joke? Read up on the abolishment of the gold standard. Wanna know who strongarmed the Democrats in 1913 to pass the Federal Reserve Act? Hint: You'll recognize some of the names. Wanna find out what Thomas Jefferson and Alexander Hamilton thought about a central bank? Again, research and Google. Unfortunately, we are condemned to repeat our past mistakes until SOMEONE responsible, as well as knowledgable in US History, starts reporting this.

...darn....figures....just when I am max bearish, we make a triple bottom...then turns up instead of continuing down.... which strongly augurs that this is the end of the downturn....but I do not expect a nice gigantic rally....for months.....maybe 66 months.....so that augurs that it probably will happen, as I am wrong often, I have noted. I think the market going sideways after people have lost 40% is torture, too.

700 billion bail out!!&^*!@ They could tell everyone making under 500k that they pay NO taxes this year and that would actually be cheaper than the 700 billion dollar bailout. Imagine what that would be like. The vast majority of us pay no taxes this year and we all have essentially get a 35% raise. Imagine how much debt we could pay off and the purchases we could make. The economy would catch fire again and the good companies would be rewarded and these poorly run embarrasments would simply go out of business. Do youw want the idiots who ran hurricane Katrina relief and who have done a wonderful job of screwing up pulbic school trying to run banks? You have got to be kidding me. Call your congressman and demand a zero tax this year. That is by far the best solution!

Cheryl, I am one of those fools that used money to pay off my mortgage instead of buying a Viper to impress the morons. Freeing up credit so incompetent people can get into more trouble does not impress me. I drive used cars, pay off my credit cards every month and have money in the bank but like to keep my 401k fully invested in the stock market. What class of mutual fund investments would I be safe in if Obama is coronated into the Presidency? I will vote McCain but it looks like the victim class and socialists will put Obama in instead. Thanks, Ray