Hump day update

Starbucks closing 500 stores, eliminating 6,000 employees. Why not just lower the price of a decaf-what’s-the-point-latte-mocafrappachino?

G. W. Bush has said he wouldn’t sign the housing bailout bill, but he’s been strangely silent on this topic since it passed the house. Is he changing his mind (flip-flopping? a Repulican?)? Well, what would you expect from a guy who is the living emodiment of the Peter Principle, who failed upwards in the private sector thanks to his family’s connections, getting himself bailed out of each failure along the way (waytogo, M.B.A). Is this the person we want in the position of making the final decision on a bailout? Or anything, for that matter? See the signing statement at bottom for the answer to this near-conundrum.

Barry Ritholtz’s (The Big Picture) web site is in the Top Ten Doom and Gloom sites of the web.

Is this what we have to look forward someday in our little banana republic:
Inflation hits 4,000,000% in Zimbabwe. Thank you, Robert Mugabe, for all you’ve done for your people, and reminding us over here in Amurica we don’t have the worst president ever.

The Weimar Republik inflated currency in order to pay off WWI debt. It was cunning plan and it worked- sorta, but the German people, and the rest of the world, paid an awful price at the time, and then just a few short years later: WWII.

At least Ben Bukkake has that option still open to him. Hanky, start the presses!

“History doesn’t repeat, but it rhymes” -Mark Twain

June auto sales, the definitive stats:

GM -18%
Ford -28%
Toyota -21%
Chrysler -36%
Honda + 1%

Overall, the worst month since 1992. Well, that’s better than saying it’s the worst month since 1929. We have that to loook forward to still. [Mish]

“I’m quite sure we’re going lower. Much lower. And those polyannas who say “No Recession” are, frankly, 100% full of crap. Never mind that the average bear market costs you 35%, and we’ve only lost about half that, which means we’ve got the second half yet to come.” -Karl Denninger, DEFLATING Wednesday – WAKE UP AMERICA!, July 2, 2008

Karl, always the optimist! It’s going to get MUCH worse than that!

The Unconstitutional Federal Reserve?

Commercial real estate soon to be in the crapper? Maybe it already is: 7% of all outstanding commercial real estate construction loans in default.

1% of Residential RE Heloc’s in default.


“Not that long ago I came to the realization that it wasn’t the politicians that were stupid; rather it was the people electing them over & over.”

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