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alstry (< 20)

Is the FIRE economy a Fraud?



February 24, 2010 – Comments (3)

The FIRE economy is finance, insurance, and real estate.  For the past ten years it has been the primary driver of profits to our economy and taxes to government.  Government has been the primary driver of dollars to health care.  Between FIRE, government, and health care....we pretty much contemplate most of our GDP.

The problem with the FIRE economy is it recently functioned simply by the creation and servicing of debt.  Without creating NEW credit, the the existing debt couldn't be serviced...essentially taking on the nature of a Ponzi scheme of borrowing simply to service debt.  Now that we are cutting off credit, we are extinguishing the FIRE.......and the economy is imploding.

Putting out the FIRE is causing revenues to government to evaporate.  Starting in March, dramatic cuts are being made to health care reimbursement at a time when health care is also suffering due to massive numbers unemployed delaying treatment and massive numbers of uninsured.  Expect VERY LARGE cuts to government and health care in the next few month which will likely cripple our industrial economy as we move into the digital age.

Remember, between health care and government, we are addressing OVER 50% of our GDP that is now going broke............

You KNEW, you FELT, and now it HAPPENS.....and if you think Greece is isolated? obviously don't know how Zombulation spreads.

3 Comments – Post Your Own

#1) On February 24, 2010 at 5:17 PM, alstry (< 20) wrote:

As an aside, if you walk to nearly any downtown in practically every major city in America....most of the tall buildings are FIRE buildings...especially banks and insurance companies.

These businesses are simply collections of debt that are now defaulting because revenues are not sufficient to service debt.  Without the debt remaining current, most of these businesses will fail....and many of these companies are lying about the nature of the debt on the books.

As long as they are able to lie....the fraud continues.....until....

Welcome to the digital age.

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#2) On February 24, 2010 at 9:12 PM, alstry (< 20) wrote:

In the digital simply don't need as many brands in an efficiency driven world.....


GM to end Hummer after sale to Chinese buyer fails


It is not the end of the world.....simply the end of a world as you knew it.

Now health care shuts down............expect at least 1/3 of all hospitals to shut down over the next few years as digital age health care kicks in with much lower costs and much lower reimbursements.

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#3) On February 28, 2010 at 3:33 PM, yesterdaysnews (38.84) wrote:

As if our largest companies being run and owned by the government wasn't enough evidence, you see more of it above. Kudos to those geniuses (or at least smart people).

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