We have two train wrecks right in front of us: California mortgage debt — debt generally PLUS the California state revenue collapse.

The tax shortfall is so profound that projections are falling apart faster than Sacramento can adjust.

The financial consequence of massive illegal immigration coupled to the nanny state is only now pulling into view — for Liberals and Rhinos.

BTW Buddy…

Any farmer is about to face a perfect storm of favorable events. Tight farm credit must constrain supply. Harvest income should be bounding up from here — Jim Rogers is right.

But i deserved it –i led with my chin. Folks like Steve B at VDH’s comment #49 not only didn’t ask for a skinnin’ but did all the things that we are taught will avoid it. Yet he’s a-gettin’ it, sloow or fast, he’s a-gettin’ a skinnin’. that comment string, BTW, is eye-opening to say the least.

I was saddened to read recently of Lenny Dykstra’s financial demise. A life-long Phillies fan, I remember him well from the 1995 World Series team, a season in which Lenny was possibly the best one season center fielder the Phils ever had. Of course, as it later turned out, he did it on steroids, a metaphor for his financial success, since he prospered in a steroid driven up-market where you could hardly lose. Still, you don’t like to see anyone who hasn’t actually done anyone deliberate harm come to such a catastrophic financial end.

Lenny now “has no more than $50,000 of assets and between $10 million and $50 million of liabilities, according to a petition filed Tuesday with the U.S. Bankruptcy Court in the Central District of California.”

but I’m an optimist.

It was recommended on Instapundit a year or so back and I tracked it down and read it.

Short version: wealth is destroyed periodically. what survives is iffy, but real wealth is often food (during scarcities), clothing (exposure and the elements can be rough), and a place in the country away from unrest and crime.

So last fall after I became unemployed I cashed in my 401k (i had good timing and didn’t lose as much as everyone else) and solarized my house to reduce my winter energy needs. I think this winter might be Very unpleasant for most people in northern climes.

I think the systems we’re familiar with are going away, so I don’t trust any form of wealth I can’t personally hold and defend.

I think we’ll see bank holiday’s (not vacations), hyperinflation, urban conflict, and Juarez style crime and banditry.

The oil market has supplanted the gold market as a mechanism for dollar revulsion.

Forget about supply and demand…

Think of oil as a store of wealth and that China wants real wealth instead of Treasurys.