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alstry (35.99)

How Will The World Be Told It Is Insolvent?

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July 16, 2010 – Comments (4)

Basically........most of the world is now insolvent.  Most economies and nations are now dependent on debt to function and they are driving much of the producers production.....

How does the world learn that it is insolvent?

1.  Hyperinflaton....and simply print money to try to mask the insolvency.

2.  Deflation....and restructure debt......

Or some combination of the above by creating a conflict to mask the issues?

But you can only borrow and spend for so long.....before time runs out......and time is running out for more and more everyday....

US Video Game Sales Decline Again in June

Foxwoods Casino Misses Debt Payment Deadline

Retailers are Already Feeling a Holiday Shiver

Study Shows 75% of School Districts Expect Teacher Layoffs Next year

 

4 Comments – Post Your Own

#1) On July 16, 2010 at 1:19 PM, Dow3000 (< 20) wrote:

Have a question for the Oracle of Caps (I say this with a heavy heart b/c I used to idolize Buffett and I wonder when he turned into such a sleazeball):

 As the banks go down again...do you believe there will again be a bailout (obviously everyone hopes not, but what do you think)...I haven't read what I assume to be a disaster of a financial regulations bill but does it makes it more or less likely that another bailout at everyones expense will occur?

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#2) On July 16, 2010 at 1:22 PM, Superdrol (97.52) wrote:

capital injection via Governments.  Happened before with the US and Japan and happening now in Europe.

Despite financial reform, the Feds will not play chicken again with the economy and do whatever the big banks beckon.

 

They tried to stand up when they let Lehman go and they'll never do it again.

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#3) On July 16, 2010 at 8:02 PM, alstry (35.99) wrote:

Japan had very little consumer debt.....and was not a consumer economy....it was a producer economy

Here we are a consumer economy that is unbelivably leveraged.....the outcome here will be nothing like Japan.

The foreseeable depression will make the 30s seem like a cakewalk.

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#4) On July 16, 2010 at 8:07 PM, alstry (35.99) wrote:

Dow...not to brag...but I doubt there is anyone on CAPS who has read more about Buffett and his investment style more than yours truly....

and you are right, something happened....he used to talk about debt and production....now such discussion is absent.....shareholder value and stock option dilution are historical discussions......it is a shame....but I think I know what happened......but it is not important.

The only banks that will survive with be the BIG Wall Street banks....kiss the rest goodbye......

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