Use access key #2 to skip to page content.

alstry (35.89)

If we are not borrowing....We have NO Economy

Recs

22

March 02, 2010 – Comments (6)

From 2000 to 2008, it was private sector borrowing that drove our economy.  Once the banks started cutting off credit to the private sector.....revenues collapsed....especially to government.

Due to massive tax receipt declines and a need to stimulate the economy plus pay its employees, government is now borrowing $2 trillion dollars per year.....but it is not enough as tax receipts continue to decline.

We are beginning to realize that it was the private sector borrowers that really propelled our economy.....and now that banks have cut off credit to the private sector, we really don't have much of a private sector save health care, food, and defense which gets a significant portion of revenues from government.

Right now there is barely any construction going on.....and much of what is moving is government funded or subsidized.

Soon you too will realize that when you pay borrowers nothing on savings, and raise interest rates and cut off credit to borrowers in a credit dependent consumer economy.........you destroy the economy as now

Hospitals are shutting down.

Schools are shutting down.

Police departments are shutting down.

Fire departments are shutting down.

Dairy farms are shutting down.

Retailers are shutting down.

Builders are shutting down.

Banks are shutting down.

Auto dealers are shutting down.

Manufacturers are shutting down.

It is not the end of the world....simply a mathematical consequence of Benny the B's zombulation policies.

But don't worry...welfare and war are booming.

6 Comments – Post Your Own

#1) On March 02, 2010 at 8:05 AM, alstry (35.89) wrote:

So ask yourself this simple question...why do insolvent bankers and insolvent politicans get to borrow money for practically free but private citizens can't??????????????????

Hmmmmmmmmmmmmmmmmm.

And you wonder why the private economy is shutting down and more and more of America is dependent on government?????

Soon we will all be comrades:)

Report this comment
#2) On March 02, 2010 at 10:41 AM, alstry (35.89) wrote:

Now the layoffs and paycuts really kick in........

Update: IBM - 1,600 Reported

Update: Los Angeles Unified School District - Expected to Approve 4,700 Layoffs

NY State - 55 Parks and Historic Sites

We didn't even close parks in The Great Depression.

It is not the end of the world....simply zombulating the industrial age......as we prepare for the digital age.

When even Buffett is making most of his money off of derivitives while firing workers....you know it is the end of an era as you know it.

Berkshire's Fruit of Loom, Shaws Carpet Cut Workforce in 2009

Report this comment
#3) On March 02, 2010 at 10:42 AM, miteycasey (31.26) wrote:

supply and demand.

As people start saving a reasonable amount versuses going into debt the economy will find an equilibrium. It won't be as high as it was in 2007 until the next bubble, but that's not a good thing.

Report this comment
#4) On March 02, 2010 at 10:51 AM, alstry (35.89) wrote:

The problem is the debt....the $55 trillion in debt........that was sld to you by Wall Street.

That is your 401K....your life insurance policy.....your money market account.....your IRA........your pension plan........the value of your  house..........your school district.......court system.......water supply.......we could go on and on..........

How can such a massive amount of debt be serviced with much lower incomes?????????????????????????????????

Report this comment
#5) On March 02, 2010 at 2:12 PM, Harold71 (22.09) wrote:

Printing more "money" seems to work. 

In the words of GC, nobody seems to notice, nobody seems to care.  

 

Report this comment
#6) On March 02, 2010 at 3:04 PM, Upstar75 (< 20) wrote:

Still S&P is up since you pridicted a dropp in september

Report this comment

Featured Broker Partners


Advertisement