Jim’s Daily Rant. The Farmers Almanac And The Movie “Margin Call”; A Sea Of Death Ships. Part I.

When we first moved to the hobby farm I knew nothing about planting vegetables. You know me, I bought a few books and built a spreadsheet. All the books said to rely on the Farmers Almanac as to when you should plant. I followed it until I recently realized it was wrong.

Here’s why. It is based on the last 50 years of weather patterns, that’s why. It’s always looking backward, not forward. This years Almanac doesn’t forecast man made droughts, Rivers in the Sky creations, and steering of storms and floods.

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This was a post from yesterday: COLLAPSE of subprime auto lender sparks fraud fears and financial turmoil. That author said:

"Tricolor Holdings, a major subprime auto lender, has filed for bankruptcy amidst federal fraud investigations, leaving nearly $2 billion in debt and raising concerns about potential fraud and a broader credit meltdown.

• The lender is accused of pledging the same vehicle collateral to multiple lenders, which could significantly impact creditor recoveries. Major creditors like Fifth Third Bancorp, JPMorgan Chase & Co., and Barclays Plc are conducting forensic audits to assess their exposure, with Fifth Third facing potential losses of up to $200 million.

• In response to the bankruptcy, creditors are rushing to seize assets. Regional bank Triumph Financial Inc. is identifying and seizing vehicles tied to Tricolor loans, while investment firm Clear Haven Capital Management is rallying bondholders to consolidate their claims.

• The collapse of Tricolor Holdings has drawn comparisons to the 2008 financial crisis, particularly the subprime mortgage crisis. Like those mortgage-backed securities, Tricolor’s loans were packaged into bonds sold to investors, many of whom now face steep losses."

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A few weeks ago I posted Jim’s Daily Rant – The Post. Part III– It’s All Ponzi Schemes. I showed that everywhere you looked in the financial system, it was mostly fraud and Ponzi schemes. So too was it in Tricolor Properties, the auto subprime dealer discussed above. It seems they borrowed funds from the big banks and pledged their collateral to all of the banks they dealt with. Pledging the same collateral to others is fraud.

Now all of those banks are terrified as to the impact it has on them, as they are doing the same thing to others . . . . It’s all fraud.

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This brings me back to the movie Margin Call. In it Peter Sullivan refers to the VAR Risk Model they used to protect them from losses. What is not disclosed is it too only looks backwards. That mistakes is what created their panic fire sale before word got out.

But after that movie, all big businesses know of the error in VARS; they know we are in a new world due to rampant fraud and collapse. They know they are all insolvent or scheduled to be insolvent. And there is nothing they can do about it to save themselves personally and save their families.

In the end, each day most business owners know in their guts they are drifting in a sea of death ships.

Watch this great layman’s explanation of the eurika discovered about the VARS and Farmers Almanac.

See: What Did Peter Sullivan Really Discover In Margin Call?   (8 Minute Video)

See: Part II - The Future Is Not All That Bad.