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alstry (35.90)

How Will America React When It Finally Learns

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18

August 28, 2009 – Comments (5)

WE HAVE BEEN LIED TO........

Nothing is turning around, it is getting worse because banks are cutting off credit to the private economy as we hand them trillions in taxpayer dollars.

That banks were incentivized, by credit default swaps, to infect our nation with a debt load that simply can't be paid back.

The politicians sat idly by and watched it happen as government did nothing to stop it.

That our pension funds, retirement accounts, municipalties, schools, and hospitals are effectively broke.

That the deficits are so large that even taxing 100% of our income is not enough to bridge the gap.

That without government spending twice as much as it is bringing in, our nation would be in a depression much worse than the thirties.

That there is no such thing as a jobless, revenueless, profitless, taxreceiptless recovery.....and in fact....there never was any chance of a recovery without  restructuring debt.

You think health care is a sensitive subject......How will America react when it finally learns it is broke.....and the bankers and politicians took it all?

5 Comments – Post Your Own

#1) On August 28, 2009 at 5:01 PM, debtRichQuick (< 20) wrote:

I definitely follow you up to the point of 09.09. There has to be a trigger event that you are watching for. Otherwise why 09.09. Why not 08.08, or 10.10. Yes there are a ton of issues, but it seems like there are so many things going on at the moment it would be hard to accurately predict anything unless you are focused on the Mother of All Particles to get this chain reaction to DOW 5,000 started.

I'm not doubting you, just finding it hard to believe that you are making a precise prediction based on a multitude of extrapolated facts. The only way you can objectively make a prediction by looking at a multitude of extrapolated facts, is by weighing both sides of the argument. I haven't heard you talk about the stimulus money, or extrapolate that aspect to the extend you do the concentric contraction, so I'm guessing that whatever you are specifically looking at supersedes all the other turning/bottoming points in the data.

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#2) On August 28, 2009 at 6:10 PM, alstry (35.90) wrote:

debt,

We basically have a corrupt economy. 

In 1932 government consumed 10% of the GDP and now it consumes 50% of a very leveraged economy.  We simply can't sustain supporting such a consumption machine with our evaporating income and oppressive private debt level.

Many are scared and no one knows how this washes out.

We now basically have 4 extremely distressed companies dominating trading on the NYSE?....with high correlation to the S&P and no SEC investigation?

Analysis has become meaningless and investing in the market has become a sham.....and people are relying on this nonsense for their retirement?

Our government is broke, so are our banks if they were required to be honest, insurance companies are similar, the rule of law has been thrown out the window, foreign banks are exiting America and so is capital, our citizens are being squeezed.....and the only thing holding this charade together is a Congress basically counterfeiting more money than the total budget just a few years ago.....

We are prosecuting wars we can't afford, bankruptcies are skyrocketing, and municipalities are slashing jobs and salaries around the nation....and we have a nobel prize winning economist advocating government borrow even more?

We are pressing on the throttle as the ship is hitting the iceberg.

This madness simply can't go on much longer without an intervening event....the only question now is what as we end Q3.

 

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#3) On August 28, 2009 at 6:53 PM, alstry (35.90) wrote:

THERE GOES THE RECOVERY.....

Flat incomes raise doubts about economic recovery

WASHINGTON – Household income in the United States is essentially stagnant, raising doubts about whether consumers already hurt by job losses can sustain an economic recovery.

The now-ended Cash for Clunkers program helped lift consumer spending last month and is expected to deliver a bigger boost in August. But any economic rebound likely would falter if shoppers lack the income to spend more in the long run.

Especially in the U.S., consumer spending is essential: It drives about 70 percent of economic activity — more than for most European nations and well above the rates in developing countries such as China.

U.S. retailers already are paying the price for flat income growth and weak consumer spending. A survey of big retail chains showed that shoppers remained tightfisted in July. That raised fears not just about back-to-school sales but also about the make-or-break holiday shopping season.

"Consumers just don't have the financial firepower to go out and spend more," said Mark Zandi, chief economist at Moody's Economy.com. "Unless businesses curtail their job cuts, the recovery could very well peter out."

http://news.yahoo.com/s/ap/20090828/ap_on_bi_go_ec_fi/us_economy

Are you F...ing kidding me?????  How do you expect business to curtail job cuts if sales are evaporating because banks are cutting off credit and millions of consumers are about to get fired from government and/or suffer material wage cuts.

At this point, it really doesn't matter anyway....government is half of GDP and half of government spend is borrowed....soon you too will understand.

Welcome to Zombulation Nation....and some of you doubted?

Now the only question is Capitalism or Communism....expect a distraction to help you along the way.

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#4) On August 28, 2009 at 8:24 PM, debtRichQuick (< 20) wrote:

I guess I was looking for something specific.  It is very easy to look at any one thing and extrapolate it into a catastrophy. I understand what you are talking about, I guess I was looking for a specific trigger. Quarter end makes sense to me. CDS market is a little confusing to me, because it's insurance that is hedged every which way. I guess I don't understand it as clear as you do.

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#5) On August 28, 2009 at 11:17 PM, alstry (35.90) wrote:

Meltdown 101: Why banks' struggles have worsened

Despite signs of an improving economy, the nation's banks are still struggling -- in fact, the pace of bank failures has accelerated.

http://finance.yahoo.com/news/Meltdown-101-Why-banks-apf-2751317564.html?x=0&sec=topStories&pos=main&asset=&ccode=

Last week it was a recovery, this week it is a meltdown.  A bit bipolar don't you think?

Halting Recovery Divides America in Two

http://online.wsj.com/article/SB125150649639668499.html

Weren't we just told by Washington and the media that the recovery was just beginning.....now its halting?

Higher bank fees coming

Efforts to shore up deposit-insurance fund means consumers will face more charges, less yield, tougher loan terms.

http://www.marketwatch.com/story/trobule-for-banks-spells-higher-fees-for-consumers-2009-08-27?link=kiosk

Wasn't the bailout supposed to make it easier on consumers?

debt,

America is about to confront the biggest fraud against its citizens in the nations history...a fraud perpetrated by its financial system and complicit by its government by either commission or omission.

It will rip our nation apart and create a strong debate between capitalism and communism....you are already seeing it rise to the surface.

When 50% of your GDP is government, and 50% of government spend is borrowing..... one has to go, either GDP or government spend.....you can't have both.

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