Tranche Warfare

The mortgage meltdown led to tranche warfare. Well, in these interesting times we see banks going under and the 750 billion bank bailout did little to prop up the financial system. In fact, our economic crisis is getting worse.

It is this inability to get loans that spread from subprime to prime to now auto loans. If people cannot buy new cars then Detroit goes under. Today prez Bush talked about an orderly bankruptcy of the big three. Back in 2005 when I predicted GM would go under the debunkers laughed, now they claim it is like shooting fish in a barrel. A barrel of what? OIL? Tell you what, oil today is under 40/b. I still remember Detroit blaming high gas prices for their troubles.

Gasoline has gone from $4.39/gallon in August 2008 to now in December 2008 a paltry $1.39/gal for gas. Tranche warfare indeed...Get ready for trouble ahead...


Jubak’s Journal: Big Oil’s bet on prices