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alstry (36.37)

Financial Bailout=Economic Collapse

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September 28, 2008 – Comments (14)

Get ready for dramtically rising interest rates and tighter credit leading to a dramatic slowdown in the economy.  Yes Demon...I still think its deflation....but it still can go the other way.

From the WSJ:

The success of the pending rescue of the U.S. financial system probably depends as much on the central banks of China and the Middle East as on Congress and the Federal Reserve.

The U.S. is turning to foreign governments and other overseas investors to buy a good chunk of what could total $700 billion in Treasury debt expected to finance the bailout. Foreign investors also are needed to shore up the depleted capital of the nation's financial institutions, seen in the plan by Japan's Mitsubishi UFJ Financial Group to buy a large stake in Morgan Stanley, which is weighed down by bad debt and market distrust.

Sure....we will love to buy your $700 Billion worth of bonds just after passing a $600 Billion dollar spending bill....how about paying us double the interest rate?  And guess what..... anyone that wants to borrow money...it is going to get a lot harder.

This too from the WSJ:

Lenders are tightening credit to restaurant franchisees in a shift that could make it harder for owners to remodel existing locations and buy new restaurants.

You think its tough to borrow now...just wait until the economy slows further and interest rates skyrocket.  Congress and our president is destroying our economy in exchange for saving the banks.....does that seem like a fair trade off.

I know....nobody has told you yet that the economy will fall into a depression/deep deep recession even if the bill is passed.

Alstry just did......and his track record and a number of other CAPs players is a whole lot better then Wall Street's or this administration.

14 Comments – Post Your Own

#1) On September 28, 2008 at 9:28 PM, alstry (36.37) wrote:

This from the NYT:

 Even if the frozen credit markets thaw a bit — and many analysts say they will — the days of easy money are over for now.

Expect to see a lot more tightening...especially as interest rates rise and few business investments can achieve the higher hurdle rates.  Anyone can jump a two foot pole...try jumping a six footer....it just might impale you where it hurts most.

Pass the bill.....the economy will chill.

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#2) On September 28, 2008 at 9:28 PM, alstry (36.37) wrote:

This from the NYT:

 Even if the frozen credit markets thaw a bit — and many analysts say they will — the days of easy money are over for now.

Expect to see a lot more tightening...especially as interest rates rise and few business investments can achieve the higher hurdle rates.  Anyone can jump a two foot pole...try jumping a six footer....it just might impale you where it hurts most.

Pass the bill.....the economy will chill.

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#3) On September 28, 2008 at 9:54 PM, columbia1 wrote:

Nice posts, thanks for updating through the week-end!! Early in the year I also thought you were just doom and gloom, I have changed my mind in the last couple of weeks, I just kept telling myself we are the strongest nation on earth- when the the going gets tough, the tough get going!- that might be true, but now the government has once again intervened. It is absolutely beyond me why the Congress will not take a time out and reevaluate their decision, or take time to get more opinions, somebody is covering their butt(or butts as I suspect)-Time to bug my elected officials again, they are getting real tired of hearing form me ;)

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#4) On September 28, 2008 at 11:17 PM, jegr5347 (< 20) wrote:

The US always has the nuclear option. To default on the national debt. I say borrow the $700bills. If we go down baby, the whole world is coming with us.

We can then balance the budget on what we save on debt service.

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#5) On September 28, 2008 at 11:18 PM, jegr5347 (< 20) wrote:

The US always has the nuclear option. To default on the national debt. I say borrow the $700bills. If we go down baby, the whole world is coming with us.

We can then balance the budget on what we save on debt service.

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#6) On September 29, 2008 at 3:53 AM, jester112358 (28.90) wrote:

Well thanks goodness the days of easy credit are over.  This is what got us into this mess-living beyond our means.

The Chinese are tired of funding our overpriced McMansions.

 Jegr5347:  you only get to use the so-called "nuclear option" once.  And since we haven't tested them in years, I'm not so sure they still work-thank goodness perhaps!  This is also true of defaulting on your debt, as Brazil and other latin american countries from 1982 will aver.  You can do it once but then you need to develop a completely autonomous economy since no one will trade with you again.  We can likely do this and probably should but it might take a generation.

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#7) On September 29, 2008 at 9:58 AM, dinodelaurentis (78.59) wrote:

ah, the nuclear option. refuge of the Heaven's Gate wing of american politics!

it is the delima of our time.

we don't have a shortage of resources, we have an overage of people using resources.

now all we have to do is find a moral way of killing 2 to 4 billion people...

while making sure that we are not among the 2 to 4 billion.

and believe me, other people in this world have thought of that as well. who would want to eliminate the 1% of the population that uses 25% of the world's resouces?

maybe the other 99%?

just a note from the sharp end of the spear, you might want to curtail the use of or even the discussion of the use of Weapons of Mass Destruction.

(psst... YOU are part of the "mass", jegr5347.)

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#8) On September 29, 2008 at 10:19 AM, alstry (36.37) wrote:

dino,

what do you do for a living????

what is your background???

please keep it general

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#9) On September 29, 2008 at 10:58 AM, mliu01 (< 20) wrote:

http://www.cnbc.com/id/26875005/for/cnbc

 Alstry, have you read this? hahaha

this is ridiculous!!! I said before SEC encouraging it! It is so obvious.

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#10) On September 29, 2008 at 11:05 AM, dinodelaurentis (78.59) wrote:

alstry,

what i am is a martial artist and a taoist.

where i've been was barnwell, sc

years of education, craftwork, retail management, and nuclear service industries.

i teach self defense to my son and his very fit friends so that they be safer when they go to work. they know a lot about everything that can have superprompt, supercritcal events.

they say it's not rocket science. :D

virginia beach is a beautiful place to live.

go navy!

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#11) On September 29, 2008 at 11:29 AM, mliu01 (< 20) wrote:

http://www.cnbc.com/id/26875005/for/cnbc

 Alstry, have you read this? hahaha

this is ridiculous!!! I said before SEC encouraging it! It is so obvious.

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#12) On September 29, 2008 at 11:41 AM, alstry (36.37) wrote:

Mliu,

I read it....truly a trajedy.

It is a crime to steal a few dollars....but rape the public out of millions and laugh all the way to the bank.

When the cop becomes the coconspirator....you know we have troubles.

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#13) On September 29, 2008 at 11:52 AM, dinodelaurentis (78.59) wrote:

it's a classical concept.

kill 2 people and you are a murderer.

kill 2 million people and you're a hero.

nothing new here folks.

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#14) On September 29, 2008 at 12:18 PM, alstry (36.37) wrote:

dino,

You get it.....nough said.

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