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alstry (35.36)

Alstry's BIG stock market miss in Perspective

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August 12, 2010 – Comments (6)

Last year, before Alstry died trying to save the Industrial Age, he thought that the market would crash...... he knew that the economy would continue to contract under Benny Bin Bernanke's Zombulation policies of cutting off credit to the Private Sector and giving credit to Wall Street and Washington......and he thought the market would follow....plain and simple.

What he never anticipated was how the nation let it's politicians take trillions of dollars of debt and put it on the public balance sheet and then continue to run what is approaching a $2 trillion dollar collective Federal, State and Local deficit........putting all this debt on backs of ALL the American people JOINTLY and SEVERALLY.

In essenece, EACH American is now liable for the ENTIRE U.S. debt, and the debt has gotton so large that COLLECTIVELY there is not enough money in America to pay it back....so, from an accounting standpoint, we are all broke until we restructure this debt....

In the mean time, we are continuing to take out this massive home equity loan simply to create the illusion that things are still functioning, just like millions of American families did between 2004 and 2007....and despite this massive borrowing, things are barely limping along.

In addition, the difference this time is the debt being created is being cosigned by every single American, vs the debt of a person taking out a home equity loan has liabilty limited to that person.....and the lender of course.

Just like I couldn't understand how banks were lending families so much money between 2004 and 2007 on their homes..........and calling it prosperity and profits.......I can't understand how we call this investing when essentially all of our sales and profits are being driven by borrowing from Wall Street and Washington.

At some point, we will be forced to pay it back.....and at that point, we will not have the money to do it.....and we will realize we are broke and our entire economy was based on our ability to continue to borrow money we didn't have or never rationally expected to have under Benny Bin Bernanke's zombulation policies.

Whether you have a dollar in your pocket and a loaf of bread is $2, or a million dollars in your pocket and a loaf of bread is $2 million dollars......you still can't buy a loaf of bread.....so you sheep that think that inflation will solve this problem have never lived in a country with hyperinflation.....and in our case, we have very little foreign reserves to avoid it.

In sum, I never understood how bankers loaned American families so much money on the perceived equity of their home without the income to support it......calling it prosperity.......AND THEN AMERICA BAILING OUT THE BANKERS AND ASSUMING THE LIABILITY OF THE DEBT THEY CREATED.......and calling it a recovery.......

How any Fool can call themselves an "investor" during this period of time is comical.....very similar to a family thinking they were prosperous by taking out a big home equity loan and spending it....

The irony about this one is that those that were responsible for not taking out debt are now going to be responsible for the entire debt of the nation........and the funny part, is that they were the most silent as all this was going on.......

By the way...the current kickback from Fools is no where near as close to the period when I was forecasting the housing collapse........but this time will be far more convulsive as there will be no one left to bail out America....absent our shot at war to take the wealth of other nations to pay back the debt.

It is not the end of the world....WW1 or WW2 was not the end of the world.....millions starving in Africa each year is not the end of the world.........so please, stop thinking that....but it really sucks if you are one of the ones living under the bombs or starving.

 

6 Comments – Post Your Own

#1) On August 12, 2010 at 8:43 AM, alstry (35.36) wrote:

Bank repossessions drive up July foreclosures

If there are no jobs....houses are worthless...just take a look at Detroit and many towns in the rust belt........and under Benny Bin Bernanke's Zombulation policies.....jobs are evaporating at the fastest rate in American history.......

U.S. initial jobless claims hit highest level since February

So for those of you still enjoying your temporary borrowing high....please don't let me interfere.....but for the rest, prepare for something you have never seen when America can no longer borrow money and Americans learn they are personally responsible for all the accumulated debt.

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#2) On August 12, 2010 at 8:52 AM, JerseyShoreGirl (< 20) wrote:

Alstry .. How do you think Americans will learn "they are personally responsible for all the accumulated debt"?

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#3) On August 12, 2010 at 8:54 AM, JerseyShoreGirl (< 20) wrote:

This just in ....

 Claims Jump To Highest Levels Since Feb

 New claims for unemployment aid reach 484K

http://finance.yahoo.com/news/New-claims-for-unemployment-apf-3180551258.html?x=0&.v=1

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#4) On August 12, 2010 at 8:57 AM, alstry (35.36) wrote:

At this point, war seems to most likely outlet as in war all laws and expectations change and people are forced to work for free.......

China warns USA over new military drill in region...

It seems like the easiest way for polticians to try to avoid a war against its own people...

however,

there is another route......where the entire world's banking system will collapse, a banking holiday ensues, and a new world currency is created....which will be the ONLY legal tender currency in the world......

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#5) On August 12, 2010 at 10:18 AM, Pick1es (23.53) wrote:

even drafted soldiers are paid by the government

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#6) On August 12, 2010 at 10:24 AM, alstry (35.36) wrote:

yes...but with often with confederate money.........which is a bit too complicated to explain in this comment section right now....

Remember....since my buddy Moses' time....Thou Shalt Not Steal has alway been the law....and when you know you are borrowing money you will not likely be able to pay back....or going to pay back with worthless paper......

in effect that is stealing.......and there has ALWAYS been a very heavy price to pay......

you really think this last year and a half won't come with a very heavy price to pay?...otherwise every nation would do it and there would be no poverty in the world

heck millions of families did it in America just a few years ago and look what happened....

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