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alstry (< 20)

80-90% of America Will Be ZOMBULATED!!!



June 13, 2009 – Comments (7)

Zombulation is a term created by the Institute of Alstrynomics defined as the point when one runs out of money and extinguishes all access to credit OR when the government taxes you 100% of your income and assets. In either case, you economically lose everything.


Dozens of US cities may have entire neighbourhoods bulldozed as part of drastic "shrink to survive" proposals being considered by the Obama administration to tackle economic decline.

When Alstry started blogging, I blogged primarily about residential real estate.  It became clear early that loaning money to tens of miillions families in amounts unsustainable by their incomes would lead to disaster....especially if those loans were adjustable and at the time interest rates had been intentially INCREASED over a dozen times.

To compound the was obvious this was going to lead to massive social distress because the bankruptcy laws were changed to make it much more difficult to discharge debt burdens.

Then Alstry observed it was not just residential real estate, but commercial real estate, commercial business loans, and government debt as well grew to levels unsustainable by revenue streams.

BASICALLY OUR ENTIRE SOCIETY BORROWED TRILLIONS MORE THAN IT COULD EVER PAY amount of money that exceeded our total savings.....and it was clear that the road would be littered with a massive number of individual, corporate, and government bankruptcies....

Six Flags seeks Chapt. 11 bankruptcy protection- AP

Those at the lower end of the economic spectrum felt the effects first....subprime loans.  But it wouldn't stop there...because too many borrowed too much regardless of their status at the time.

If you take a step back and look at our economy.....90% of America is either dependent on borrowing or selling to others that borrow.  SO EVEN IF YOU DIDN'T BORROW, THOSE THAT BUY FROM YOU OR THOSE THAT YOU PATRONIZE DEPEND ON BORROWING OR THOSE THAT BORROW!!!!!!

The biggest borrower AND beneficiary of the DEBT BUBBLE was government......not only did government see a huge rise in tax receipts....BUT borrowed against that much higher level of income AS WELL!!!!!!  GOVERNMENT GREW TO ABOUT HALF THE ECONOMY!!!!  HALF!!!!

If you think about it, we lived one giant ponzi scheme.....and just like all ponzi schemes....the game ends when new funds can't be raised anymore and money stops flowing around.

And now, the funds are slowing to the 800lb gorilla....the Government........and this is where the sh*t hits the fan.....the entire economy of the Washington D.C. area is dependent on government is the entire defense industry, much of health care, and hundreds of billions in sales to government aid recipients......such as WalMart, grocery stores and the like.

The fallout will be unlike anything we have ever seen before......far worse than most of you can imagine at this point.  The unknown will be how will government react to simply not having any money.

What demands will it make on its citizens......will we be taxed 100% of our income....for the few that have income......will our assets get taken over in order to fund our own defense and to protect us from social disorder?????  What is your life worth?????

At this point......few know the guess is that there are bunch of policy makers grinding out the numbers and goals as this blog is written. 

My role is simply to preapre you for what is coming......and soon most of you will is much easier to mentally adjust with prepartion than react to unexpected distress.

And by the way.....this will be a world wide issue!!!!  It will impact the United States and Europe the hardest...but all will feel it to some degree or another.

One way governments have moved through massive transitory periods is speeds up the creative destruction departing thought at this point....




7 Comments – Post Your Own

#1) On June 13, 2009 at 11:07 AM, OneLegged (< 20) wrote:

As usual I think you are pretty much on the mark.  All that remains to be seen is the degree to which the poop hits the fan.  Perhaps the unfolding events in California can provide at least an inkling as to what may unfold on the Federal level.

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#2) On June 13, 2009 at 11:13 AM, alstry (< 20) wrote:

Not to sound like an arrogant prick....which, by the way pretty much describes Alstry.....I know I am on the mark.....

I created Alstrynomics and Alstrynomics is all about being right by applying the facts and not looking in a rear view mirror to see where we are going.

Throughout this process, it is amazing to see what happens to people when the light turns on.....

OneL,.....your perpsective above is dead on....but only the beginning as this ride slowly comes to a stop.

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#3) On June 13, 2009 at 11:52 AM, bigcat1969 (81.03) wrote:

If you are right then the G8 is in for a surprise since they are now working on exit strategies since the "The force of the economic storm is receding. There are encouraging signs of stabilization across many economies," according to Tim Geithner as quoted on Reuters.

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#4) On June 13, 2009 at 1:15 PM, checklist34 (98.36) wrote:

well if you're right then "to those on welfare, the nation".  get them crowns now.

if you are wrong i am going to go ahead and have some pie.  ;)

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#5) On June 13, 2009 at 1:24 PM, alstry (< 20) wrote:

When people get ZOMBULATED....they start doing desperate acts!!!!!!!!!!!!!!!!!!!!!!!!


 As theft rises, stores step up anti-crime efforts- AP


G-8 nations get ready for economic recovery- AP

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#6) On June 13, 2009 at 1:58 PM, AdirondackFund (< 20) wrote:

From one arrogant prick to another .... Namaste!  I was fortunate enough to sell all of my NYC Real Estate 4 1/2 years ago, and plowed everything into Gold, which I sold about 2 weeks ago.  All of the NYC COOPS and Mansions are gone!  Sold!

I am now in all cash....and pondering our future as a Nation.  I was impressed to see that Geo. H.W. Bush 'jumped' at 85.  I might be doing the same.   

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#7) On June 14, 2009 at 11:21 AM, crystlz (50.83) wrote:

Reality Check from the Midwest,

At my friend's birthday dinner friday night we were discussing how things were changing in her job as a debt consolidation planner. A few months ago she would tell me stories of how many of her clients had extravagent expenses at multiples of 4 or 5 current income levels. Now her take has changed in that many of her clients are continuing to put groceries on credit until the limits are reached, but that now it is common for these folks to have already turned off the cable, phone, highspeed internet etc. 

In short, they have been Zombulated and there is no amount of debt counsuling that is going to prevent them from visiting my brother, who is a bankruptcy attorney.

Interesting is that his take has also changed as his client load has soared. He has throughout his career felt that he mostly deals with irresponsible people who need to take responsibility in their lives. Now he is saying that a lot of the people he is seeing have lost what seemed to be bullet proof jobs, health insurance, and have become vulnerable to the catastrophic illness that takes them to the mat.

 my 2 cents 


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