* Bank books are happy fiction
* Banks are delaying foreclosing on houses so they can keep showing it as a profit
* The Fed is pumping billions into their operations
* Option ARMs resetting, as mentioned elsewhere
* Available credit is shrinking
* People are spending to shrink their debt, hence an increase in the savings rate, and a decrease in spending on goods and services
* Government numbers are lies.
Think for a moment. Where does the government money, what is keeping this charade going, coming from? They are borrowing it, printing it, doing just about anything they can. What they are intent on doing is kicking the can down the road to the next administration.
"The government will have to borrow nearly 50 cents for every dollar it spends this year..."
We have a massive debt which we are going to have to eventually reckon with. Gradually, the government will have to pay more and more to borrow, as well as borrow more and more to pay off the interest and have enough to sustain the banking system. Is that a vicious cycle, or what?
Pop the champagne cork, but watch out for the falling house of cards. The reason depressions represent opportunity is that the herd does not see it coming. Its your choice whether to believe nutcases like me!
Comments
* Bank books are happy fiction * Banks are delaying foreclosing on houses so they can keep showing it as a profit * The Fed is pumping billions into their operations * Option ARMs resetting, as mentioned elsewhere * Available credit is shrinking * People are spending to shrink their debt, hence an increase in the savings rate, and a decrease in spending on goods and services * Government numbers are lies.
Think for a moment. Where does the government money, what is keeping this charade going, coming from? They are borrowing it, printing it, doing just about anything they can. What they are intent on doing is kicking the can down the road to the next administration. "The government will have to borrow nearly 50 cents for every dollar it spends this year..." We have a massive debt which we are going to have to eventually reckon with. Gradually, the government will have to pay more and more to borrow, as well as borrow more and more to pay off the interest and have enough to sustain the banking system. Is that a vicious cycle, or what?
Pop the champagne cork, but watch out for the falling house of cards. The reason depressions represent opportunity is that the herd does not see it coming. Its your choice whether to believe nutcases like me!