Economics Update

It looks like people are starting to notice that the cost of groceries are going through the roof. According to the article, Bush's dumbass corn-ethanol program, increased demand from overseas because the dollar has fallen, and increased energy costs are the primary drivers.

Then we have experts saying that Banks face a "systemic margin call" to the tune of nearly half a trillion dollars, according to analysts at JP Morgan.

"Systemic Margin Call" is a nice way of saying that the credit markets are imploding.

Thornburg Mortgage is teetering on the edge of liquidation as a result of more specific margin calls. They do not have the capital to repay their loans, and this will lead to more of their loans becoming non-conforming, resulting in more capital.

Thornburg is not the first, and it's nowhere near the last.