Sunday, March 01, 2009

Banking's Future

Chavez orders temporary seizure of rice mills
Associated Press March 1, 2009
Caracas, Venezuela -- President Hugo Chavez on Saturday sent troops to temporarily take over rice processing plants in the South American nation, his toughest move against industry since winning a referendum last month.

"I will expropriate them. I have no problem with that, and I'll pay them with bonds. Don't count on me paying with hard cash," Chavez said.

In the past, Chavez has paid reasonable compensation for takeovers, but falling oil prices may limit his ability to pay this time.

"I'll pay them with bonds. Don't count on me paying with hard cash." Isn't that sweet. Sound familiar? Yep, exactly what we are doing with our banks and for exactly the same reasons. Just substitute lenders for rice mills and lending for rice.


Jean ValJean said...

When I FIRST went to Venezuela a tad under 10 years ago, the bastard had just taken over, and it was pretty normal to see soldiers on the streets everywhere. My co-worker and I were also threatened to have our exit visas revoked if we didn't solve an issue, but that's another story.

Casey Serin said...

Time for me to move to Caracas, buy myself my own rice processing plant, with a generous portion of rice-back-at-close. :-)

Lou Minatti said...

Hey, Rob. I own Melonhead commentary.

BTW, it's day 839 and Casey is still not in jail. And he will never see a prison wall. There are about 200,000 Californian's in line ahead of him.

Pleather Murse said...

Just saw this on Craigslist recently:

Bulk REO's (Arizona)

Arizona - 80 properties
BPO: $30,695,875
Price: $17,496,648
57% LTV
Bulk REO.

Also have nationwide reo's, send in a reply!

(end quote)

Who the hell advertises $17M worth of real estate on a frakking free Craigslist ad?

Lost Cause said...

American taste for soft toilet roll 'worse than driving Hummers'

The tenderness of the delicate American buttock is causing more environmental devastation than the country's love of gas-guzzling cars, fast food or McMansions, according to green campaigners. At fault, they say, is the US public's insistence on extra-soft, quilted and multi-ply products when they use the bathroom.

"This is a product that we use for less than three seconds and the ecological consequences of manufacturing it from trees is enormous," said Allen Hershkowitz, a senior scientist at the Natural Resources Defence Council.

Kasey S said...

Why do I hear the theme song from Jaws constantly playing everywhere I go?

Bob said...

Separated at birth?

Lost Cause said...

Slid right past 6969 with nary a wimper...waiting for 6009 right now. Bottoms up!

Stagflationary Mark said...

I had about 20 pounds of excess rice the last time there was a rice shortage. I now have roughly 35 pounds of rice.

Thanks for posting this! I can stop losing sleep over my rice investment and concentrate all my sleep losses on my inflation protected united states treasury BONDS, lol. Sigh.

H Simpson said...

AIG at .46
cheaper than buying an option. Is this where KC gets in the financial business?

Personnally, I think Wall Street is playing a game to shake down the US Government yets again. Same game big oil plays with shortages whenever they want a bigger profit.

They best watch it. My wife is starting to get pissed, and they are target #1. Only a matter of time before the taxpayers say ENOUGH!

Here is my plan.

1. Screw the poor babies because they have to sell good assets. They are dead, do not know it, but they are still getting paid. They ought to agree to everything Washington says.

2. For each infusion of new taxpayer money another exec committee member has to go to jail for 3 years. Start with highest paid and work your way down. Bet they get the numbers right fast.

3. Put some of those wall street clowns to work for the US govt at $30K to do a proper mark to market on all that toxic paper. The talent is around and looking for work.

Lost Cause said...

They might as well force AIG to sell medical coverage to every citizen of the United States. That would dovetail nicely into the next stage of thier plans.

Give credit to Chavez. At least he gets some bags of rice. What kind of bags are US taxpayers left holding?

Property Flopper said...

Wow, I knew it wasn't going to hold 7k, but now it's dropped right through 6800 and threatening 6700. Not a pleasant day.

Anyone near the financial district of your local city, watch out for falling investors. Hopefully some of the Wall St. crowd will have the decency to jump.

Rob Dawg said...

One word: Caterpillar.

Crushed despite every happy talking point of the MSM.

I'm looking at the tare and 13 year lows are reading "stocks hold support and finish above lows of the day."

techie22311 said...

we still haven't hit my 6500. Over 1/3 of investors now feel the Dow will break under 6,000. To me that means it won't happen. As more folks expect this they will wait to buy in at that level. We have a terrific day of consolidation coming but it won't break down that much. it rockets up after that to flat line at 6800. We trade between 6800 and 8,000(absolute max) for the remainder of this year. I know I know I'm being optimistic. I'll come back and admit as much if I'm wrong :)