Some Futures need throwing away…

This a posting by Jim Fitch of
Some Assembly Required.

Some futures need throwing away.
William Gibson, Spook Country

Buy The Numbers: GM sold 2.29 million vehicles in the most recent quarter, loosing $6,756 a vehicle.

A Word From Our Sponsor: In the yelling match discussion over drilling in the Arctic and in the magical kingdom of ‘off-shore’, keep in mind that the oil being fought over may not exist. Estimates are based on USGS surveys that base ‘undiscovered oil’ on geologic suggestion. But the USGS previously thought there were immense supplies in the off-shore Baltimore Canyon, too, but $3 billion in dry holes convinced the majors that the were none. Carry on.

Passing In Review: James Quinn at Seeking Alpha ends a long and thorough and highly recommended review of the banking/financial situation with this: “When you see a bank CEO or a top government official tell you that everything is alright, run for the hills. They are lying. They didn’t see this coming and they have no idea how it will end.” Amen.

Millennium: Peace and Brotherhood are not about to break out in Iraq. The Kurds want to control Kirkuk and the northern oil fields, and the Arabs aren’t dumb enough to let them. In Anbar Province and the rest of western Iraq, the Awakening movement is wresting power from the Sunni Iraqi Islamic Party. The Islamic Supreme Council of Iraq (Iran’s horse in this race) has – with US blessing – made gains under Maliki that Muqtada al-Sadr’s Mahdi Army will reverse as soon as the US Army heads home. And any oil deal Bush has forced on Our Gang will be reversed as soon as Iraq actually becomes run by Iraqis. They all want the US to leave, and leave the spoils behind for them to divvy up among the survivors.

You Didn’t Hear It Here: Some view Meredith Whitney’s prediction that US house prices will fall 33% from 2007 highs as conservative; 50%, 60% and even 80% estimates have surfaced. S&P predicts a further 17% fall in the next 8 months

The Bigger They Come: The Royal Bank of Scotland is expected to report the biggest loss in UK banking history, taking a hit of almost £6 billion from the credit crisis.

Some Assembly Required reflects my somewhat cynical view of the world on a daily basis. Think of it as having coffee with a curmudgeon. Come visit.

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  1. Anonymous

    I’d just like to say that my neighbor, who bought his home in October 2003, then put it up for sale in July 2005, was asking $899,000 for it.
    He paid about $660,000 for it.

    It just sold, 3 years after he put it up for sale, at $739,000. He put nothing into it except new wood floors and taking out the old carpet.

    Someone, somewhere, still has money to spend and this is in Phoenix Arizona, not Paradise Valley or Scottsdale but regular 85018 Phoenix.

    I hope that whoever paid $739,000 for the house next door doesn’t expect me to start lining my driveway with gold bricks or having Jose come in on a daily basis to water the flowers.

    Disclosure: I bought the house back in 1996 for $202,000.


  2. Ilargi


    For accuracy purposes: The 33% peak to trough isn't Whitney's prediction, it's from Case/Shiller. And the S&P forecast of an additional 17% drop in the next 8 months doesn't apply to the US, but to the UK.

    I delved a bit deeper into the topic today at The Automatic Earth.

  3. Jim Fitch

    Ilargi – Thanks for the heads-up. I hadn’t gotten around to AE when I wrote the blog – although I do read AE daily.

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