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alstry (35.46)

Anyone Have Any Guesses Where This Is Going?

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July 14, 2010 – Comments (4)

CINCINNATI (Reuters) - Deborah Coleman lost her unemployment benefits in April, and now fears for millions of others if the Senate does not extend aid for the jobless.

"It's too late for me now," she said, fighting back tears at the Freestore Foodbank in the low-income Over-the-Rhine district near downtown Cincinnati. "But it will be terrible for the people who'll lose their benefits if Congress does nothing."

For nearly two years, Coleman says she has filed an average of 30 job applications a day, but remains jobless.

"People keep telling me there are jobs out there, but I haven't been able to find them."

http://finance.yahoo.com/news/Fears-grow-as-millions-lose-rb-1408637055.html?x=0&sec=topStories&pos=5&asset=&ccode=

We built an economy where we borrowed to consume and most of our jobs, production and tax revenues was simply a derivative of our consumption.

In recent years, a HUGE percentage of our consumption.....and production... was simply because government was handing well over 100,000,000 people/families very large checks every month permitting them to buy lots of stuff.

The problem is that with the consumer and private sector getting cut off of credit, sales, profits, and tax receipts have evaporated.........and government is being forced to borrow an unprecedented amount of money to keep the economy functioning.....

How do you run a consumer based economy when the consumer is being cut off of credit. jobs are evaporating and most of the consumption and production is now being driven by government spending with money it doesn't have?

4 Comments – Post Your Own

#1) On July 14, 2010 at 9:48 AM, alstry (35.46) wrote:

This is what happens when you kill the consumer in a consumer economy....

Home-buying applications sink to 13-year low

Retail sales drop 0.5 percent in June

Fears grow as millions lose U.S. jobless benefits

Watchdog: Small banks struggling despite bailouts

The only question now is how long can government keep spending as tax receipts decline?

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#2) On July 14, 2010 at 10:40 AM, miteycasey (31.38) wrote:

Free money for everyone!!!

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#3) On July 14, 2010 at 10:49 AM, XMFSinchiruna (27.48) wrote:

Quantitative easing to infinity.

States and municipalities will be bailed out, because the alternative would be 'unthinkable'. Pension funds will be bailed out, because the alternative would be 'unthinkable'. Some form of government assistance will be provided, because the alternative would be 'unthinkable'. With all these 'unthinkable' scenarios in play, there is not much thinking going on about where this all ends up.

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#4) On July 14, 2010 at 11:01 AM, miteycasey (31.38) wrote:

it ends up with free money for everyone!

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