"The Official Portrait of Miss InDiana"

"The Official Portrait of Miss InDiana"
aka "Miss Victory"

Monday, January 26, 2009

Fed Reserve Fails to Reflate the US Banking System

A four minute video revealing the magnitude of the current banking crisis. Our world will never be the same.

5 comments:

Anonymous said...

I hope that our local political leaders are paying attention to what's happening, but I do not have faith that they understand how serious our economic problems have become. They pretend to hide behind the hope that we can overcome this as though hope again will rule out logic and economic history. If we continue down this path of consumerism which includes people living beyond their means and charging the future on a credit card, we will all pay the most dearest price as the people are armed and a rebellion will occur. I do not wish to see this happen as I always aspire for peace, but I am all too aware how many people I know who are ready for something big to happen. For those in political office who believes that we must continue to borrow from the future by printing more money and devaluing our dollar.

We live in the crossroads of America and we are at a critical juncture in history. There will be a time for people to unite and hold those in elected positions accountable for fraud, treason, and deceit upon the American people and as soon as the bottom falls out, the people will rise up.

Shorebreak said...

Anonymous - thanks for your wise commentary. I believe that the fears you've expressed will be inevitable. Take steps now to be prepared.

With regards to the Fed, the following information comes from the balance sheet's of the

http://federalreserve.gov/releases/z1/Current/

1.) Since the 4th quarter of 2007, US households have lost $7.09 trillion in net worth. The big categories are:

-- $2.9 trillion from real estate
-- $2.4 trillion from corporate equities
-- $.990 trillion from mutual funds
-- $1.8 trillion from life insurance

Also, say goodbye to Peoria as of todays announcement by Caterpillar. We can add them to Wilmington, OH, another city that is soon to be a ghost town with the departure of DHL.http://www.bloomberg.com/apps/news?pid=20601087&sid=a7V4lt77MQ9g&refer=home

We're in a lot of trouble, folks. And guess whose gonna be in the best position to pick up the pieces and rebuild according to their own terms?

If you answered "the same people who created this mess", please give yourself a pat on the back for using your mind. We're not getting out from under this mess, folks. The best thing that youcan do is to learn how to prepare for it. The key is "community".

Anonymous said...

Anonymous #1 & #2 both had great responses. As a business owner here in Indianapolis with well over 300 employees, I had already swallowed a very difficult gulp as I will be laying off 30 people, but my biggest worries is that I could be laying off another 50-75 more people by the end of July. I have paid into this political system as a Republican for years and have watched my own party systematically destroy our nation's future. This is the last time I'm giving money to them. We allowed this game to go on too long and I'm in favor of a political revolution to happen. We have to get these jackasses out of office fast!

Anonymous said...

I suppose it is naive to say that the government needs to lower taxes for the corporations that return to manufacturing products in the United States. We need to return to "made in America" and it has always disturbed me to see our manufacturing go to other countries. Part of that is the governments deliberate policies and the 'greenies' that do not want dirty ol manufacturing here in the U.S.

Shorebreak said...

Anon 8:24 PM: Do you mind giving some detail on the type of business that you operate? One of the things that I do is "read the map" so-to-speak regarding economic and industry trends. I was recently hired by a couple of savvy business owners who are willing to stop listening to CNBC forecasts and who are listening to sound, rational solutions that can take advantage of current ,arket trends rather than become victim to them.

For example, there's a popular type of business category known as "counter-cyclical". These are the businesses who thrive in an economic downturn, like thrift stores.

There's opportunity for other types of businesses to be successful in a similar market, but it involves business model flexibility and it must be driven from the top down. For example, when yesterdays news of 74,000 job cuts came out, I told our sales staff that we have potential opportunities at Pfizer and at caterpillar, who announce 20,000 and 15,000 layoffs respectively. it took only a few seconds for them to shake the "deer in the headlights" look from their faces and say "you're right!"

If you're a business owner, the key to this mess (and it's going to get much, much worse) is to take a full accounting of your business model, of your capabilities, and of your resource requirements. Spend the time to put solid niumbers into place and to look very hard at your employee skill sets. There will be very difficult decisions for you regarding the lives of your employees - you WILL need to reduce staff and change priorities. We cut people but we also hired more people than we cut in order to open the necessary doors to keep us growing.

The best advice that I can give is to understand very clearly that we're not facing a market blip or even a market dive. We're facing economic armegeddon. That's a quote from a senior Morgan Stanley analyst - from 2006. Make the painful decisions now, analyze your core capabilities to find opportunities in a severe downturn, and direct your assets to go after those markets.

At the very least, you'll keep a core group of individuals employed and you'll leverage yourself to stay alive compared to companies that won't change and who allow the fast-crash environment to put them out of business.