Titans clash, burrow in little chickies!

This Monday will be a memorable one in the history books. Yesterday Bear Stearns, the fifth largest investment bank on Wall Street failed. In order not to make it look like it went bankrupt, our government and the Feds brokered a deal for JP Morgan to buy what was left of Bear Stearns for $2/share. Friday Bear Stearns was worth $53/share when a bail out was conceived. It didn't work, so the gutted it and gave the problem the JP Morgan.

This set off a firestorm in the Asian markets while I slept - though I watched like a rube at the carnival watching the wolf boy eat the fat lady - until late last night. The Asian markets decline 4 to five percent, gold jumped to 1030/ounce, oil to 111/gal. When the US markets opened today is seen as the most dangerous day imaginable. Earnings reports on the other banks are do, and they are expected to be terrible. The market is in free fall, the dollar has fallen yet again to record lows against the Euro and everything else, including the Yen. Asian banks this morning ceased trading with Lehman Brothers, another investment bank, but the smallest, and it may flush down the toilet today. This does not make investors happy, so like the Asians they try to pull their value out of those that will die, and that kills the banks.

Example, a report this morning that Citi bank is borrowing at 10 percent and loaning at 6 percent. That ain't going to work long.

So chickies, our financial future is tumbling through space right now. It will affect what you can buy, and how much it will cost. It will force factories to close and jobs to be lost. Any retailers selling non essentials will continue to be unable to get credit to make inventory purchases and the real estate market is just beginning to go over the edge.

Rarely do we live in a time where we can actually see the collapse of a worldwide financial system. Of course market people won't use the word collapse, they will say that the market is resetting itself. Indeed it is. Many of us will be reset right along with it.

So, as I've said before, forget the giants, watch only to avoid being stepped on as much as possible, get your plants started and get your chicks and bunnies while you can. A pig and some goats are good too if you have the room. Everything you needed to get from China via Ebay and Walmart - better do it now - with the dollar in freefall - DOWN - all imports will be going up. Cars, tools, everything in fact, because in case you didn't notice in the last 20 years, we don't make much here anymore, except noise, and there is a lot of noise being made this morning.

Other matters, the next two scenes of the new chapter 6 will be up later today. Guess who is pregnant? Stay tuned.

Jerked McChicken