The Day Goldman Sacks Died part 1

May 21, 2010
Wednesday

My usual wake up time of 5a.m. turned into 4a.m. News from around the globe had been hitting fast and furious in the overnight market and who knows what might have happened after I reluctantly retired myself sometime around 1a.m.

I quickly plug in a full pot of coffee and make a mad dash to my desk to open the Drudgereport. "Prime Minister Brown In Emergency Meeting" in large bold black letters was sprawled across the top of the online newspaper. In smaller letters under the headline read "Obama receives 3a.m. phone call" and below that "Bernanke seen entering White House at 3:25a.m."

"As if they could stop or even slow this snowball now," I thought. "Too many meetings and not enough heedings."

Coffee is ready.

Not very many Americans still believe the spin coming from the White House that a recovery, though fragile, is underway and that the risk of a double dip recession is low. Throughout the spring months unemployment continued to rise to 15.4% and quite actually, that official figure was more like mid 20's and everyone knew it. Government credibility was practically nil any more as the stock market had slid down to 8K at the same time we were being told that Obama had saved the world from desperation or depression or whatever the heck he said. It just rang hollow. No, it had no ring to it at all, lies never do.

Prices were rising on every conceivable thing and the misery index was so high it was permeating the air. People who had jobs were finding it tough to pay their way what with doubled and in some states, tripled electric bills, water bills that could not be justified since flooding rains were abundant all over the country all year so far. And yes, of course, the price of gas was once again becoming terribly problematic. Food choices were diminishing from grocery store shelves in favor of nothing but the basics since prices were rising so fast that few people were able to buy anything but the basics.

Every day I would say, "this day is as good as it's going to get" and truly, every day was becoming a little bit worse than the day before. "Change" that had been coming slowly during the first year and a half of this administration is now picking up steam and is going to run over us all. It was in the air. And now it is on Drudge. Lightening is about to strike.

Last Friday after the market closed a whole slew of banks were reported to have gone out bringing this years total to 346 which was a number equal to the number of banks that had closed since the financial crisis began in late 2007. Real money was evaporating and was being replaced by printed money, not likely to do anyone any good. By the end of the day today total bank closings could run into four digits.

Or worst. Maybe today is the day they all collapse.