09 August, 2007

Going Nuclear On Us

Every day, via email, we receive numerous warnings of impending financial disaster. The dollar is dying, the housing market is crashing, oil is either going to hit 100 dollars a barrel or drop below 40, and all within the next few days. Problem is, we have all been getting these messages for a decade or so now. 3 or 4 years before the slowdown in housing, gurus were warning us of impending catastrophe, and ushering us to their website where for 85 or 100 dollars we could subscribe to their newsletter and be privy to all future prognostications.

Is 1,000 days really a warning? If you think so, then please send $300 for my new market strategery report, entitled: "The Comeback in Real Estate". You'll also get my global climate study; "How to Survive the Coming Ice Age". Finally, if you sign up before Sunday at midnight Eastern Daylight Time, I'll send you my hillarious blockbuster Hollywood Report: "Sean Penn Loves America Again". All three are "5 Star" locks, although the Ice Age might take more than a few years to get here.

Sure real estate is a downer right now. But aside from a special I saw on Discovery Channel about the Japanese building an island to put a new airport on, no one is making land anymore. So do not get too depressed if your real estate holdings are shaky right now. Banks, Builders and Borrowers over did it for the last few years, and now the ones who under appreciated the risks, the ones who made bad choices are facing the music. If too many of these B,B&Bs go belly up, then we may have further market discomfort, but in all likelihood 3 years of over-zealous home building and buying will not bring down the Republic. This is just markets in action. The bankers will either curl up into the fetal position and suck their thumbs, or realize that they are bankers, and bankers loan money, that's what they do.

On the world stage, why would any foreign nation, for instance China, want to drop all of the dollars they own and put us in a financial tailspin? Without Americans, who is going to buy all their stuff? Dear Mr Hu(ever); Good luck finding another coutnry full of hundreds of millions of suckers willing to borrow money to buy all the things your country is making. Hell, we don't even care if the goods you are sending us are poisonous. We're talking about the nation who thought is was a jim-dandy notion to put more chemicals, like lead, into our gasoline so we could drive faster and not have to listen to the motor knocking. A little anit-freeze in my toothpaste? Big friggin' deal. Oh, but remember, do not mess with our dogs. The poison in the dog food, that was a bad move. We have heard that you executed a bureaucrat over the matter, and for the most part I think we have forgiven you for your over zealous capitalism. Maybe we should outsource the oversight of our government to China.

How about axis of evil, the middle east and all the other countries who hate us? Well, if America ceased, the global demand for oil would plummet. The price of oil would plummet. How attractive is 5 Euros a barrel to the Saudis? The Iranian government can barely keep their country running with oil at $75 a barrel. Once their initial joy at our demise wears off, they'll still be stuck with each other, and without the Great Satan to hate on, what's a starry eyed mullah to do?

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