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alstry (35.28)

EVERYTHING Is Subprime

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July 12, 2010 – Comments (1)

More Americans' credit scores sink to new lows

1 in 4 American consumers are deemed risky as more credit scores sink to lows of 599 or less

http://finance.yahoo.com/news/More-Americans-credit-scores-apf-490198280.html?x=0&sec=topStories&pos=5&asset=&ccode=

The premise is simple....every job and every asset is dependent on a healthy American economy...

America's economy was healthy over the past ten years because Wall Street loaned more and more money to Americans, American businesses, and American municipalities as Wall Street outsourced more and more American production overseas.....

so the borrowing Americans could borrow more to buy more foreign goods and financially based assets......

Once Wall Street cut off credit to the private economy.....YOU WERE MATHEMATICALLY CERTAIN THE PRIVATE ECONOMY WOULD COLLAPSE......

and it has.....even as Wall Street is still loaning trillions of dollars to Government and Wall Street based businesses.....

Now what happens when Wall Street cuts government and public companies off of credit?

IT IS A MESS AND ABOUT TO GET A LOT MESSIER.......

because everyone's job and investments are based on Wall Street lending..........not production anymore....and Wall Street is cutting off credit as it bailed itself out........

1 Comments – Post Your Own

#1) On July 12, 2010 at 9:17 AM, alstry (35.28) wrote:

Over 3/4 of the jobs in America are dependent on a leveraged consumer spending massively in order to maintain the economy.

If the consumer is not borrowing and spending massively....A MINIMUM OF HALF THE CURRENT JOBS WILL BE LOST DUE TO LACK OF REVENUES.

Now everyone wants to work for government because government still has credit to pay salaries....what happens when government gets cut off from credit because consumers are not paying taxes?

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