{"id":197003,"date":"2008-03-09T20:16:00","date_gmt":"2008-03-10T01:16:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/03\/09\/economics-update-505\/"},"modified":"2008-03-09T20:16:00","modified_gmt":"2008-03-10T01:16:00","slug":"economics-update-505","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/03\/09\/economics-update-505\/","title":{"rendered":"Economics Update"},"content":{"rendered":"<p>It looks like people are starting to notice that <a href=\"http:\/\/www.boston.com\/business\/personalfinance\/articles\/2008\/03\/09\/surging_costs_of_groceries_hit_home\/\">the cost of groceries are going through the roof<\/a>.  According to the article, Bush&#8217;s dumbass corn-ethanol program, increased demand from overseas because the dollar has fallen, and increased energy costs are the primary drivers.<\/p>\n<p>Then we have experts saying that <a href=\"http:\/\/www.reuters.com\/article\/ousiv\/idUSN0832645120080308\">Banks face a &#8220;systemic margin call&#8221; to the tune of nearly half a trillion dollars<\/a>, according to analysts at JP Morgan.<\/p>\n<p>&#8220;Systemic Margin Call&#8221; is a nice way of saying that the credit markets are imploding.<\/p>\n<p>Thornburg Mortgage is <a href=\"http:\/\/www.nytimes.com\/reuters\/business\/business-thornburg.html?_r=1&amp;oref=slogin\">teetering on the edge of liquidation<\/a> as a result of more specific margin calls.  They do not have the capital to repay their loans, and this will lead to more of their loans becoming non-conforming, resulting in more capital.<\/p>\n<p>Thornburg is not the first, and it&#8217;s nowhere near the last.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It looks like people are starting to notice that the cost of groceries are going through the roof. According to the article, Bush&#8217;s dumbass corn-ethanol program, increased demand from overseas because the dollar has fallen, and increased energy costs are the primary drivers. Then we have experts saying that Banks face a &#8220;systemic margin call&#8221; &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1261,1004,1265,1200,1088],"tags":[],"class_list":["post-197003","post","type-post","status-publish","format-standard","hentry","category-bubble","category-finance","category-housing-crash","category-inflation","category-real-estate"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/197003"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=197003"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/197003\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=197003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=197003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=197003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}