Time to make the doughnuts

More Market stuff....

Ben Stein said 35 billion in subprim. Aparently Asia has half of it, I bet 75% of the remaining is in europe, and the rest is in hedgefunds or purchased by . At 10% default rate it's a nominal amount of money relative to the mortgage market and the US Market or the Global market.

But But But if new housing starts get cut in half, which means that half those companies go belly up that build houses. The loss of mortgage jobs. loss of ancilary jobs.

Also, the loss of Fractional reserve money, lost with the industry.... Which means 10/1 loss. to the economy. Stein says 67 billion possible loss to the economy, but that is only in morgage loss. at 10/1 that is 67 billion loss to the economy.

and Real estate is 12% of the economy and if that gets cut in half. That means a loss of 5% of the economy... I think that is fairly significant.

The real questions: Beyond my probably overestimation of 5% loss of the economy, and loss of Fractional reserves created by the Loans... roughly 1.5 Trillion which is still only 12% loss to the economy..... if that number is correct, that will kick off a solid recession.

Now, if it's only say a 3% loss, it could still kick off a lot of nerves in the economy, and still kick off the big R word....

Well, I'm totally talking a game I know very little about, and most the numbers are out my ass.

Not to not be a Bull, but That's what I think.

I have many questions about deflation, I guess with the loss of these loans. We could see less money supply.

Question is Where to run? Guess I could buy gold into every fed week, in case there is a cut.

Looking at AAUK

I'm just hoping we don't go all red leading with the Semi's

oil will run a couple of bucks today I say $71.50

Gold up .50

And I'll take a nap about 10