Captain Crunch and I have known each other a good long while. He and I both served on the U.S.S. Puget Sound AD-38, although at different times. She was a destroyer tender, but was also the Sixth Fleet Flagship during the time I was stationed at Naples, Italy.
But we have a lot in common. Both vets, both shooters and both conservative.
He doesn't run his own blog, because like a lot of other good people he usually stays off the skyline.
I'm glad to have this post of his to put on the blog.
Here it is, complete and unabridged!
The Economic Lie,
I have some friends involved in the portable office building, mobile home business. That business is kind of a economic bell weather of sorts. When a construction company wants to build a facility, they lease a portable building, office, with air conditioning, electricity and other creature comforts. Thease buildings are 'towed' behind a diesel truck called a 'Toter' usually a single axle truck. You may have seen a toter going down the road towing one half of a double wide mobile home.
Some of the buildings are single wides, some are doubles and if you put many of them hooked together, you have a 'plex' example, eight of them pieced together and its an eight plex.
The portable building business has dropped, or almost shutdown in Texas. In the oil business, hundreds, if not thousands of units (portable offices) were being used by contractors. There are three stages to bringing a well online. Exploration, completion and production. All three require contractors, sub contractions etc, to have portable offices. Since the price of oil has dropped becouse the Saudi's have killed the American oil business in essence that business has dried up.
The next really bad thing that is happening is all the repo's in the portable building, mobile home business. I cannot confirm what I heard offhand but a major player was quoted to have said there are upwards of 30.000 repo's of mobile homes alone in Texas. I'm sure the majority are tied to the oil industry. Now the guy's driving the toters will be busy for awhile doin' repo's and making money (at least until the banks start shutting down)
What is also bad is that the bank will be left holding the note on a mobile home that can only be sold for 30 cents on the dollar (if anyone wants it) so banks and financing institutions will be laying off people and or going under.
The price of fuel.
The price of fuel is also a bell weather. Price of fuel is up, its because people and business are using the fuel so its an increase of demand. Price of fuel going down, people and business's are not using the fuel. That means the economy is much, much worse than we are being led to believe. Walmart has announced they are shutting down some stores in the U.S. as of this morning. I am assuming they are shutting down in area's of decreased population with people leaving economically impoverished area's.
Keep an eye on the stock market. Markets were down this morning with investors realizing what is really happening. This may turn out to be another crash like in 2008 or another market correction. The wave of layoff's has started the oil bust in Texas and I think will spread outward as time progresses to other states and other industries hitting the big ticket items that consumers purchase like housing and auto companies next.
Think like an Okie in 1930.
If anyone gets the chance. Pay off your house, car, credit cards. I know most people can't and most American families are up to their necks in debt. If you can, only buy stuff you really need. Think like an Okie in 1930. I know that will further erode the economy but its about survival, your survival and the survival of your family.