8.9.10....It is only a question of when?
August 07, 2010
– Comments (4)
For Alstry, it wasn't hard to see if banks loaned Americans trillions of dollars to buy, refinance, and extract "equity" from their homes......America would have the perception of a boom while the process was going on, this was an unprecedented amount of borrowing and we would be told that houses never go down in price so keep borrowing regardless of income.......and the more we borrowed, the bigger the boom......and if Wall Street took that debt and stuffed it in our retirement, pension, and investment accounts, bankers would get rich and it would appear that our net worth was rising...............................until Wall Street cut Americans off of credit, then all would crash..................and all did.
But instead of restructuring the system, we bailed out Washington and Wall Street and did very little for the private economy.....so here we go again, but this time Washington and Wall Street is borrowing trillions each year and that debt is again being stuffed into our retirement, investment, and pension funds......HOWEVER, while we are giving unlimited money to bankers and Washington, Wall Street is cutting off credit to the private sector and outsourcing many of our jobs so much of the private sector is collapsing or in a Depression causing tax receipts to evaporate.
Now the only question is when will bankers cut off credit to Washington, just like they did to homeowners.......at that point a collapse is guaranteed as most Americans are now dependent on government checks each month to consume....and those who are not dependent on government checks are dependent on those below consuming for their income.
50,000,000 Socicial Security and Medicare/Medicaid recipients
41,000,000 Food Stamp recipients
+/-20,000,000 Unemployment recipients
+/-20,000,000 Government employees
and an entire Healthcare industry most funded by government dollars
PLUS ALL OF THE DEPENDENTS OF THE ABOVE........
and how is the above being funded?......just like the housing boom.....by borrowing money, and now incredible amount of money.....Over $1.5 Trillion PER YEAR just at the Federal Level alone......and obligations are rising rapidly as more and more are becoming dependent on government checks as the population ages and the private sector is outsourced or shutdown.
Alstry tried to warn people about the pending housing collapse.....people thought he was crazy as housing was the backbone of America. Then, we saw what happend when homeowners were allowed to borrow many trillions and cut off of credit......it will be interesting to see what happens to America when politicians are cut off of credit......remember, there is always a point when you can't borrow anymore.....it is just a question of when.
The same is true with
RSS Headlines
Fool UK