These things are now popping up all over the place, just as Talib suggested as the globalised system becomes locked into every perturbation, small, large, near and far.
- The gold bulls have been predicting a long surge in gold prices because the economic systems we live in are FUBAR. But I wonder how many of them predicted this?
LEADING South African gold and platinum mines stopped production yesterday because of a lack of power, as the Government announced emergency steps to deal with outages that have caused chaos and threatened economic growth.
The crisis has helped the gold price to rise to an all-time high, closing at $US910.70 ($1030) an ounce.
After generations of looting the country and impoverishing its people, those who depend on its raw materials getting out find they are stuck in the ground. Black Swan
- My own country has not been quite as insane in leveraging our debt and cashing out of our inflated property values as some, but even if we had been totally prudent, it would have made almost no difference.
Aussie storm on its way
As a hot and nervous January draws to a close, clouds hang over a number of corporate entities in Australia. Debt splurges are being blamed as the call goes out among their corporates to reel in their global businesses. New Zealand is one of the first areas of the world where the big funds are looking at selling assets as a furious race for cash heats up.
They sell our assets at bargain prices to cover moronic bets made in Australia on the creditworthiness of the least credit-worthy people in the US. Black Swan.
And this seemed such a good idea at the time to all those right wing nutcases in the US who worry about them furriners comin to pollute the precious bodily fluids or something
'Hispanic panic' as Arizona immigration crackdown bites
One month after Arizona introduced a law cracking down on businesses which employ illegal immigrants, Latino workers are fleeing the state and companies are laying off employees in droves, officials and activists say.
The effects of the law have been immediate, according to businessmen, workers and rights activists who spoke to AFP, with companies driving up wages to attract labor while being forced to part company with prized employees.
Workers are going back to Mexico or to other states, Reza said. He predicted small businesses forced to lay off skilled employees like welders will now pay them in cash, creating a black economy. "The underground economy is going to take hold now, and there will be less money for the state," Reza said.
... "I've talked to other companies who have said they can’t find anybody," Robinson said. "I've heard they're going to Utah or Texas or New Mexico because they don’t have a law like this.... "We've created a climate which will make Arizona’s construction industry subordinate to Nevada," Jones said.
"We're all frustrated (with illegal immigration), but I don’t think this is the right approach. If we don’t have a functional guest worker program in this country, we’re going to be in trouble."
Too late buster. Perhaps they can take up breeding Black Swans.
- And on the money front, the latest, greatest meltdown of them all, one to make Nick Leeson hand in his "rougue trader" badge and take up crochet.
Did SocGen trades trigger market rout, Fed cut?
Societe Generale's shock disclosure of a fraud that lost it $7 billion has left investors wondering about a link between the fiasco and Monday's European stock market rout.
The sharp fall, which was followed by an emergency U.S. rate cut, came as SocGen tried to close out positions built up by one of its traders.
SocGen, France's second biggest bank, said on Thursday that it had been the victim of a massive and "exceptional" fraud by a junior trader resulting in losses of 4.9 billion euros, and announced a large capital increase.
This is a perfect example, an unauthorised trader with inadequate oversight and trivial security systems taking staggering risks that go pear shaped. And like AMRO Bank, SocGen is now dangerously exposed to a takeover while possibly being the trigger for a global economic blowout
In a sufficiently complex system (and boy do we have one of those) it is practically inevitable that at some point, all safeguards will fail, in multiple places, simultaneously.
While your boss may treat you as an idiot for asking what the company plan is for dealing with such a scenario, WHEN it happens, the blithely unprepared get ground into dust between the gears.