Top 25 Things Vanishing From America: No.1 The Family Farm

Here you will find all Top 25 Things Vanishing From America.

This series explores aspects of America that may soon be just a memory — some to be missed, some gladly left behind. From the least impactful to the most, here are 25 bits of vanishing America.

1. The Family Farm

My mother grew up on her family’s dairy farm in central Oregon, and when she was a child she was in 4-H — just like all the kids in her town. I’ve always admired her way with the “home arts” (she makes a mean jar of cucumber relish, and her embroidery festoons quilts for all my boys) so when I saw her 4-H ribbons I assumed that big purple one must have been for brownies, or jam. “Oh, that was for the pig I raised,” she said matter-of-factly.

Read moreTop 25 Things Vanishing From America: No.1 The Family Farm

Bernanke, Paulson Pressed to Seek Big-Government Bank Bailout

July 21 (Bloomberg) — Ben S. Bernanke and Henry Paulson are under pressure to embrace the big-government policies of America in the 1930s, or Sweden in the 1990s, to contain the conflagration engulfing the U.S. housing and financial markets.

Among the ideas: Using taxpayer money to shore up the capital of loss-ridden Fannie Mae and Freddie Mac, setting up new agencies to buy and refinance mortgages in default, even taking over failing financial institutions.

The government’s current “fire-brigade approach to dealing with the fallout from the extremely weak domestic economy is eroding general confidence in the U.S. financial system,” says Brian Bethune, chief U.S. financial economist at Lexington, Massachusetts-based Global Insight. “Bold, creative, aggressive policy action is needed.”

Read moreBernanke, Paulson Pressed to Seek Big-Government Bank Bailout

8,500 U.S. banks; many will die soon

I called the death of Indymac Bancorp on Monday, July 7th. The Federal Deposit Insurance Corporation seized Indymac on Friday, July 11th.

I called the implosion of the two Government Sponsored Entities in the mortgage business, Fannie Mae and Freddie Mac on Wednesday, July 9th. Sunday, July 13th the White House announced a bailout for them.

Related article: Fed: No more bailouts, except Fannie Mae and Freddie Mac

Want to know what happens next? It’s ape ass ugly and it’s going to happen to you, so don’t say I didn’t warn you.

Read more8,500 U.S. banks; many will die soon

Commercial bankruptcies soar

Small business bankruptcies

WASHINGTON – Driven by a sour economy and skittish consumers, U.S. business bankruptcies saw their sharpest quarterly rise in two years, jumping 17 percent in the second quarter of 2008, according to an analysis by McClatchy.

Commercial filings for the first half of 2008 are up 45 percent from last year, as the national climate for commerce continues to deteriorate amid rising energy and food costs, mounting job losses, tighter credit and a reticence among consumers to part with discretionary income.

From April through June, 15,471 U.S. businesses called it quits, according to data from Automated Access to Court Electronic Records, an Oklahoma City bankruptcy management and data company.

States that saw the biggest increase in filings were Delaware, Montana, Oregon, Maryland and Connecticut, suggesting that the economic gloom is spreading beyond large population centers.

It was the 10th straight quarter that business bankruptcy filings have increased. Nearly 29,000 companies filed in the first half of 2008.

Another 60,000 to 90,000 others probably have closed, because roughly two to three businesses fold for every one that files for bankruptcy, said Jack Williams, resident scholar at the American Bankruptcy Institute.

The vast majority of these failed companies are among the nation’s 23 million small businesses, with fewer than 100 employees. Their fortunes have tumbled as the national economic downturn has deepened.

“The climate is turning desperate for small businesses,” said George Cloutier, founder of American Management Services, a consulting firm that helps small companies increase profits. “They are in crisis, and, as these numbers show, it’s getting worse and worse.”

Read moreCommercial bankruptcies soar

FDIC will run out of money, says Roubini

(RTTNews) – The FDIC is looking for ways to shore up its depleted deposit fund, including charging higher premiums on riskier brokered deposits, FDIC Chairman Sheila Bair said Friday.

However, that fund is “a myth,” according to longtime banking consultant Bert Ely, and consumers may end up paying the price of what is expected to be a growing wave of bank failures.
NYU Economics Professor Nouriel Roubini predicts that Congress will have to intervene in order to bail out the deposit fund.

“They’re going to run out of money, with certainty,” he predicted. “Congress is going to have to recapitalize the FDIC, those $50 billion plus is not going to be enough, by no means.”

Read moreFDIC will run out of money, says Roubini

U.S. Financial Breaking Point Soon

Something is going to break, and soon. Banks are insolvent and failing by the hundreds if not thousands. Hedge funds are on the edge of oblivion. Only a tiny percentage of toxic waste losses in real estate and other asset classes of collateral, which will eventually amount to over $1.4 trillion in the US alone, has to date been recognized by the lying bankster fraudsters. Bonds are producing negative rates of return even based on ludicrously understated official rates of inflation (until this month, when we finally got some data bordering on the truth).

Read moreU.S. Financial Breaking Point Soon

As faith in bank bailouts dims, losses set to deepen

NEW YORK (Reuters) – The nightmare scenario for U.S. economic authorities is here: confidence in their ability to rescue the country from a housing-led financial panic is now at its lowest level since the crisis began.

This means losses for investors, already totaling nearly half a trillion dollars, could mount even further over the next few months, with implications for business investment and the overall health of the economy.

“You see a massive potential for financial meltdown on a global scale,” said T.J. Marta, fixed-income strategist at RBC Capital Markets.

Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson, testified before Congress this week on the country’s precarious financial state. They were met with unusually fierce questions from lawmakers on the feasibility of a plan to provide extra funding for mortgage finance giants Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz).

Read moreAs faith in bank bailouts dims, losses set to deepen

Citigroup posts another big loss


Citigroup has reported another big loss, although it lost less money than had been expected.

The biggest US bank by assets lost $2.5bn (£1.3bn) in the three months to the end of June, weighed down by another $11.7bn of write-downs.

Citigroup said it had cut 11,000 jobs in the first six months of the year and planned to continue at the same rate.

Related article: US: Financial system is a house of cards

Read moreCitigroup posts another big loss

US: Financial system is a house of cards

What will happen if “more” banks will fail?

Interesting comment:
“I was talking to a close friend yesterday and he told me that he just heard an “expert” on CNBC tell the audience that the failure of IndyMac was nothing to worry about – it was just one bank. How on God’s green earth do they allow such idiots to mis-lead the listeners? Just one bank? This is the second largest bank failure ever, (second in size only to the 1984 failure of Continental Illinois Bank which led to a big jump in the price of gold at the time). Don’t these fools realize that the Federal takeover of this “one bank failure” is going to leave 10,000 depositors with $1 billion in deposits that EXCEED the $100,000 FDIC insurance limit and they will be lucky to get any of it back. Don’t they realize that this “one bank failure” will use up 10% of the total FDIC fund, which is only $53 billion. How safe if your money in your bank? How safe is the dollar?” Source: Here

It looks like the entire financial system of the U.S. will fail.
If you take a closer look at the article below, then you will see how tense the situation already is.
And
IndyMac was “just one bank”.
You will find more information below the following article.
– The Infinite Unknown

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July 17, 2008
Source: msnbc

Banks reportedly not taking IndyMac checks

Finally able to withdraw their money, customers can’t open new accounts

LOS ANGELES – The frustration didn’t end for some IndyMac customers when they finally were able to withdraw their funds from the failing Southern California bank seized last week by federal regulators.

Some people have run into more problems when they tried to deposit IndyMac cashier checks at other banks.

Sheryl MacPhee said she waited in line two hours Tuesday at an IndyMac branch in San Marino to liquidate a certificate of deposit. But when she took it to a Washington Mutual branch in South Pasadena to deposit, she said a manager told her their new policy was not to accept IndyMac checks. If the customer insisted, she said she was told, it could take eight weeks or more to access the full amount.

“Sure, IndyMac will give you a check,” MacPhee told the Los Angeles Times, “but what good is it if no other institution will accept it?”

Read moreUS: Financial system is a house of cards

Merill Lynch posts loss of 4.6 bln dlrs, sheds assets

Wall Street investment giant Merrill Lynch on Thursday announced a quarterly loss of 4.6 billion dollars, driven by hefty writedowns from its bets on the US real estate market.

Merrill, which has been roiled by its exposure to the US subprime mortgage crisis, also said it would shore up its capital with the sale of some assets.

It announced the sale of its 20 percent stake in financial news and data group Bloomberg for 4.425 billion dollars.

Related: Fed: No more bailouts, except Fannie Mae and Freddie Mac

Read moreMerill Lynch posts loss of 4.6 bln dlrs, sheds assets

FREDDIE & FANNIE UNCONSTITUTIONAL BAIL OUT USING WHAT?



“As I write this column, Congress has run this country into a $9,498,511,404,143.63 debt. That’s just under $9.5 TRILLION “dollars.””

I really hope that you will find time to read this article. 🙂
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Arthur Henning of the Chicago Tribune said back in 1935, “The New Deal will bring the Communist Party within striking distance of overthrow of the American form of government…” Mark Sullivan of the Buffalo Evening News also expressed alarm in 1935: “The New Deal is to America what the early phase of Nazism was to Germany…”

The nation is awash in fear because they are coming to realize that while they’ve been buying all the hype from the cabal of gangsters in Washington for decades, reality is now setting in as poverty is slamming millions who used to belong to the middle class. From dangerous lending practices to the derivatives time bomb waiting to go off and inflation getting ready to launch into hyper inflation, the situation is more grim by the week. A financial catastrophe so many have been warning about for decades, it’s all coming home to roost. The “perfect storm” as it’s being called. The beast is now devouring itself and we the people are caught in their cross fire.

Unfortunately, most Americans haven’t been listening. They’re either addicted to sports, shopping, porn, drugs or yaking on their cell phones while the world has been heading for financial Armageddon.

Read moreFREDDIE & FANNIE UNCONSTITUTIONAL BAIL OUT USING WHAT?

Amber light flashing on U.S. dollar intervention

So Inflation is really the greatest export of the US.
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LONDON (Reuters) – Three days before the last bout of coordinated central bank intervention to calm world currency markets, the International Monetary Fund’s top economist opined: “If not now, when?” Many experts are now asking the same.

Read moreAmber light flashing on U.S. dollar intervention

US: $455,000 debt per household

As the Bush administration proposes backstopping mortgage giants Fannie Mae and Freddie Mac with a $300 billion line of credit and Congress contemplates another economic stimulus, the question is who will bail out the government?

“People seem to think the government has money,” said former U.S. Comptroller General David Walker. “The government doesn’t have any money.”

A rare consensus has developed across the political spectrum that the government’s own fiscal affairs are precarious, with an astonishing $53 trillion in long-term liabilities, according to the Government Accountability Office.

To put that number in human terms, the debt has reached $455,000 per U.S. household. As that debt grows, the United States increasingly relies on foreigners, including China and Middle East oil producers, for financing.

Read moreUS: $455,000 debt per household

US: The Cattle Industry Is Struggling To Survive

Beef prices are likely to increase as rising food and fuel prices threaten many cattle ranches

The American beef industry is in trouble. Though the financial strain of rising fuel and food prices is being widely felt across the U.S. economy, the livestock industry, which consumes about 5 billion bushels of corn annually, is suffering more than most.

Feedlot operators, who fatten their animals on corn before sending them to a slaughterhouse, are losing $150 a head with corn prices near record levels because of demand for corn-based ethanol. In Texas, the country’s largest beef-producing state, a quarter of the once-packed feedlot space is unoccupied. Some operations are shutting their doors, and “liquidation”-the culling of herds-has become a frequent escape hatch for the seriously struggling.

Read moreUS: The Cattle Industry Is Struggling To Survive

If the price of oil doubles, food prices will at least double

At virtually every link in the nation’s food chain, the cost of oil is pushing expenses ever higher.

Retail bills for some food staples have risen at least 20 percent since 2006, and they probably will continue their upward march. A gallon of gasoline could cost $7 within the next two years, some analysts say.

“If you double the price of oil, I would assume that food would at least double, and it might be more because the cost of oil gets magnified in the food chain,” said Milt McGiffen, a vegetable specialist for the University of California cooperative extension in Riverside County.


SCOTT LINNETT / Union-Tribune Nancy Owens Renner of Ocean Beach expanded her backyard garden last winter in an effort to offset rising food and fuel prices. “I am thinking about how to maximize production in my yard,” Renner said.

By the numbers:
Price increases between May 2006 and May of this year:
53% – Eggs
25% – Bread
25% – Rice
19% – Milk
14% – Coffee
11%
– Chicken
Source: Bureau of Labor Statistics

Farmers are paying more money to fill their tractors with diesel for planting and harvesting. They also spend more for fertilizer, pesticides and plastic packaging, most of which are petroleum-based.

When the food is stored and processed, it takes a huge amount of energy, which is linked to the price of fossil fuels as well.

Then, products are shipped using diesel trucks and rail cars that are far costlier to run now than in years past.

The result is bigger and bigger food bills that are causing financial hardship for millions of Americans.

Read moreIf the price of oil doubles, food prices will at least double

Status Report on the Collapse of the U.S. Economy

“But, realistically, all ordinary people can do today is try to survive, perhaps by working with friends and neighbors in planting food and living within the underground economy. At least people might not then have to starve to death, because hard as it is to believe that “it could happen here,” widespread famine in the U.S. seems a real possibility over the next several years. Nations take such risks when they allow capitalist agribusiness to destroy local agriculture.”

With the economic news of the week of July 14-the continuing crisis among mortgage lenders, the onset of bank failures, the announced downsizing of General Motors, the slide of the Dow-Jones below 11,000-we are seeing the ongoing collapse of the U.S. economy.

Even the super-rich are becoming nervous as cries for an emergency suspension of short selling ring out.

What is really taking place, however, is that the producing economy of working men and women is being crushed by the overall debt burden on households, businesses, and governments that could reach $70 trillion by 2010. The financial system, including mortgage giants Fannie Mae and Freddie Mac, is bankrupt, as the debts it is based on cannot be repaid.

Read moreStatus Report on the Collapse of the U.S. Economy

US faces global funding crisis, warns Merrill Lynch

Merrill Lynch has warned that the United States could face a foreign “financing crisis” within months as the full consequences of the Fannie Mae and Freddie Mac mortgage debacle spread through the world.


Draining away: The US may struggle to plug its capital gap

The country depends on Asian, Russian and Middle Eastern investors to fund much of its $700bn (£350bn) current account deficit, leaving it far more vulnerable to a collapse of confidence than Japan in the early 1990s after the Nikkei bubble burst. Britain and other Anglo-Saxon deficit states could face a similar retreat by foreign investors.

Read moreUS faces global funding crisis, warns Merrill Lynch

Saudis offer Moscow billions to break with Tehran

MOSCOW – Saudi Arabia has offered to buy Russian arms worth 2.4 billion dollars (1.5 billion euros) if Moscow stops supporting Iran, a Russian newspaper reported Tuesday, citing diplomatic sources.

“The kingdom’s government advised Moscow to cease its cooperation with Tehran, and in exchange it held out the prospect of profitable contracts with Saudi Arabia,” the daily business newspaper Kommersant wrote.

The report came one day after Russian Prime Minister Vladimir Putin met with the General Secretary of Saudi Arabia’s Security Council, Prince Bandar bin Sultan.

Citing sources in Russia’s defence industry, the newspaper said Saudi Arabia was ready to buy at least 100 BMP-3 combat vehicles, 150 T-90 tanks and 160 Mi-17, Mi-26 and Mi-35 helicopters.

Read moreSaudis offer Moscow billions to break with Tehran

The Wall Street Journal Senses Something is Wrong

A subscription to the Wall Street Journal costs several hundred dollars a year, so most people out there don’t get it and DollarCollapse.com rarely posts links to its articles. But everybody should see today’s edition, which probably sets the modern-day record for disturbing headlines. Here’s a sampling of what subscribers read this morning:

Read moreThe Wall Street Journal Senses Something is Wrong

Five Years Late and a Trillion Dollars Short

On Tuesday, the SEC issued an emergency rule in an attempt to curb naked short selling in 19 major financial institutions, including Goldman Sachs, Morgan Stanley, Citigroup, and JP Morgan Chase and Company.

Read moreFive Years Late and a Trillion Dollars Short

Are “Dark Pools” Destined to be the Capital Markets’ Next Black Hole?

Related article:Big Traders Dive Into Dark Pools

We can almost hear that ominous “Jaws” theme music in the background and can see that huge dorsal fin as it slices threateningly through the water – knowing full well that the real terror is hidden beneath the water’s surface.

But this time around, it’s not a “Great White” that’s sparking our fears; it’s a well-capitalized and broadly based series of secret stock exchanges known as “Dark Pools of Liquidity,” “Dark Liquidity,” or just “Dark Pools.”

Most investors have never even heard the term – and are truly shocked to discover these “off-the-books” trading networks actually exist.

But to Wall Street insiders looking to anonymously move billions of dollars in stocks, bonds, and other investment instruments, dark pools are de rigueur – especially when you’re an institutional trader who doesn’t want to reveal your intentions or your actions to the “rest” of the market, until after the fact when the orders are “printed.”

And that makes these dark pools of capital highly problematic when it comes transparency: There is literally none in most pools and only limited visibility in others.

Dark Pools: From Trading Haven to Heavyweight

Dark Pools are electronic “crossing networks” that offer institutional investors many of the same benefits associated with making trades on the stock exchanges’ public limit order books – without tipping their hands to others, meaning publicly quoted prices aren’t affected. This is the capital markets’ version of a godsend – especially for traders who desire to move large blocks of shares without the public investors ever knowing.

Some examples of so-called crossing networks include Liquidnet Inc., Pipeline, the Posit unit of Investment Technology Group (ITG), or the SIGMA X unit of Goldman Sachs Group Inc. (GS).

In an era in which “secret” transactions contributed to what’s shaping up to be the largest credit crisis in history, you’d think that any mechanism that allows insiders to trade in complete secrecy and with total anonymity would be scrutinized more closely than a Roger Clemens vitamin shot. But that’s not the case with Dark Pools.

Read moreAre “Dark Pools” Destined to be the Capital Markets’ Next Black Hole?

Gazprom Connects to Iran


Iranian President Mahmoud Ahmadinejad with Gazprom CEO Alexey Miller in Teheran, July 13, 2008

Gazprom has signed a memorandum on cooperation in production and transportation of oil and natural gas with the National Iranian Oil Co. The Iranian company, which all other oil companies in the world refuse to work with, is promising Gazprom “a full package of projects.” The memorandum was signed by Gazprom CEO Alexey Miller, Iranian Oil Minister Gholam Hossein Nozari and NIOC managing director Seifollah Jashnsaz. Gazprom will thus have the chance to strengthen its position in the countries with the world’s second largest gas reserves (proven reserves of 28.13 trillion cu. m.).

Read moreGazprom Connects to Iran

Jim Rogers: Fannie Plan a `Disaster’; Goldman Says Sell

The U.S. economy is in a recession, possibly the worst since World War II, Rogers said.

“They’re ruining what has been one of the greatest economies in the world,” Rogers said. Bernanke and Paulson “are bailing out their friends on Wall Street but there are 300 million Americans that are going to have to pay for this.”

July 14 (Bloomberg) — The U.S. Treasury Department’s plan to shore up Fannie Mae and Freddie Mac is an “unmitigated disaster” and the largest U.S. mortgage lenders are “basically insolvent,” according to investor Jim Rogers.

Taxpayers will be saddled with debt if Congress approves U.S. Treasury Secretary Henry Paulson‘s request for the authority to buy unlimited stakes in and lend to Fannie Mae and Freddie Mac, Rogers said in a Bloomberg Television interview. Rogers is betting that Fannie Mae shares will keep tumbling.

Goldman Sachs Group Inc. analyst Daniel Zimmerman said the mortgage finance companies’ shares may fall another 35 percent and lowered his share-price estimate for Fannie Mae to $7 from $18 and for Freddie Mac to $5 from $17. Freddie Mac fell 64 cents, or 8.3 percent, to $7.11 in New York Stock Exchange trading, while Fannie Mae fell 52 cents, or 5.1 percent, to $9.73.

“I don’t know where these guys get the audacity to take our money, taxpayer money, and buy stock in Fannie Mae,” Rogers, 65, said in an interview from Singapore. “So we’re going to bail out everybody else in the world. And it ruins the Federal Reserve’s balance sheet and it makes the dollar more vulnerable and it increases inflation.”

The chairman of Rogers Holdings, who in April 2006 correctly predicted oil would reach $100 a barrel and gold $1,000 an ounce, also said the commodities bull market has a “long way to go” and advised buying agricultural commodities.

`Solvency Crisis’

Read moreJim Rogers: Fannie Plan a `Disaster’; Goldman Says Sell