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alstry (35.36)

Government Borrowing EXCEEDS Corporate Profits

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July 27, 2010 – Comments (3)

Government is borrowing more money than Wall Street is earning....as a matter of fact, Wall Street is borrowing more money than Wall Street is earning.....combined, they are borrowing more money than is available to lend to them....

Now the only question is what weight do you give earnings when such earnings are simply a result of borrowing?

You are about to find out soon......

8.9.10             Kabooooooom!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Welcome to the Digital Age.....

3 Comments – Post Your Own

#1) On July 27, 2010 at 12:21 PM, davejh23 (< 20) wrote:

What weight do you give banks' earnings when they're only made possible by reductions in loan loss reserves?...even though some analysts have noted that the big banks have $500 billion in unrecognized losses?  They can't even turn a real profit when they can access essentially interest free gov't money.

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#2) On July 27, 2010 at 12:30 PM, alstry (35.36) wrote:

It is not just banks...it is hospitals and drug companies through medicare/medicaid....and we could go on and on and on.....

There is simply no practically economy anymore absent borrowing and spending.........

and once we can't borrow anymore...the only choice left is....

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#3) On July 27, 2010 at 9:59 PM, oshiri (< 20) wrote:

Sempai . . .

     Is there anyone left paying their mortgage?

From the "Financial Times" today: Foreclosures jump 425% among prime US borrowers 

http://www.ft.com/cms/s/0/00068a58-9906-11df-9418-00144feab49a.html

Credit-worthy borrowers with straightforward mortgages are entering foreclosure at a record pace, according to a report released on Tuesday by Lender Processing Services, which tracks and analyses mortgages. Foreclosure rates among “agency prime” loans, which conform to guidelines set by Fannie Mae and Freddie Mac, the government-sponsored mortgage finance companies, have jumped 425 per cent since January 2008, with a particular acceleration in the last two months, LPS said. 

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