HowardFinancial Bankruptcies, Too Complicated
July 30th 2008 15:13
Real Crash- Looking at Capitalism and its Laws:
Can't Explain, the Who
***I can't explain, can't explain;
The economy is blowing;
Can't explain;
I thought I knew all about it;
Listen to talk radio all day;
Can't explain;
But, it's just too complicated for me;
I can't explain;
(Music spoof, Can't explain, "the Who")
We have the news about bankruptcies spreading, and hitting the Casual Restaurant sector, one step up from fast food, but not too expensive. Still in business are Applebees, and Bonanza steakhouse. But Benigan's just went down. This is going to leave a big whole in the commercial real estate market, as these restaurants disappear. Mervyn's a regional department store filed for Chapter 11, which means they are trying to reorganize their finance.
Meanwhile, yes $25 billion disappeared in the sale of Mortgage Backed Securities and Collateralized Debt Obligations (MBS and CDOs) by Merrill Lynch, to the hedge fund connected rogue equity firm, Lonestar. Time to get some FDR policies.
Why is finance and the American system so hard to understand? Rush Limbaugh, Savage and Imus will talk for hours about "Heather Has Two Mommies" and the homosexualisation of the educational system, and lovely stuff like that. They will barrage their listeners with the real life of the spotted owl and the real truth about global warming.
Somehow, the deals and shenanigans of their bosses in the British hedge fund worlds of the Cayman Islands seems to be "just too hard to understand."
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