A Little Piece Dying Everyday
Almost everyday now, we are reading about a small part of our economy shutting down with nothing to replace it. 600 coffee shops and 12,000 employees. 10% of flights and thousands of workers. Manufacturing plants, insurance companies, banks, retailers, restaurants, trucking companies......few seem to be escaping the pressure of a contracting world economy.
Further this issue is not limited to America....Europe and Asia face similar pressures. The Japanese stock market coming upon an over 50 year record for consecutive down days, the Chinese stock market down over 50%.
As business slow, it becomes harder and harder for banks to lend money. Trillions of credit lines have been eliminated. As lending slows business slows further.
And to add fuel to the fire, fuel and food are rising in a rapidly slowing environment....anyone think that money is flowing to the only place it thinks it can get a return.
As incomes fall and prices rise, we will certainly see a decline in consumption and more competitive pressures. We are seeing it now in many different areas.
Government revenues are falling off cliff and now huge tax rebates will be forthcoming to corporations from NOL carrybacks. If few are capable of paying taxes....expect a much bigger burden to fall upon their shoulders because the government needs to get money from someplace.
This time, it is those BIG taxpayers that aren't paying taxes.....banks and finance companies....based on some back of the napkin calculations....even if we taxed individuals 100% of eligible income.....we still would come close to the shortfall.
America is finally waking up...slowly day after day the news is getting worse. Sure alternative energy is a good idea.....but where is the money going to come from?
With revenues slowing, our economic system is slowly dying day after day...tenants are asking their landlords for rent abatements, companies are asking employees for paycuts or eliminating jobs completely, government is cutting back services.
Who knows when this process stops, but when it does I will be the biggest bull in history......cheers to that day!!!!