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alstry (35.46)

No Chance For A Recovery

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October 09, 2009 – Comments (9)

(MarketWatch) -- U.S. banks are reducing their lending at the fastest rate on record, tightening the credit squeeze and threatening to leave many otherwise viable businesses unable to borrow money to expand their businesses, meet their payroll or refinance their maturing debts.

According to weekly figures provided by the Federal Reserve, total loans at commercial banks have fallen at a 19% annual rate over the past three months, while loans to businesses have dropped at a 28% annualized pace.

http://www.marketwatch.com/story/banks-cutting-back-on-loans-to-businesses-2009-10-09

Didn't we just bail out the banks so they would start lending more?????  Thank goodness interest rates to citizens are falling due to Benny B's zero interest rate policy.

Wells Fargo to Raise Rates on Most of its Credit Cards up to 3%

When you cut off credit and raise interest rates on an economy that is leveraged as much as the bankers infected America with.....revenues don't slow....revenues evaporate as declining cash flow is forced to service a debt load that is so large it is mathematically impossible to pay back.

Indiana governor alarmed about state revenue

Gov. Paterson orders $90M SUNY budget cut

Paterson orders 11% cut in agency spending

Drastic Cuts For Iowa State Budget

Culver Announces Immediate Ten Percent Budget Cuts

America became dependent on credit extension in order for our economy to survive...when you cut off credit to the economy, you must restructure the existing debt so it doesn't consume all of the cash flow of the nation.  As fewer and fewer have cash flow to spend on goods and services, more and more fail.

Kirk Company - Converts to Chapter 7

It is not hard to see what is happening to America....what is difficult is to think it could actually be happening to us....could ALL of America actually decline into deterioration simply because the bankers cut off credit to the nation????  Is it really that simple to destroy the greatest capitalistic nation on earth???  Can Benny B and the bankers really accomplish what Osama Bin Laden only dreamed about???

When a decline of 33% revenues for Alcoa is better than expected....what do you think?

When Auto Industry sales are down over 50% and it is better than expected...what do you think?

When New Home Construction is DOWN 80% and it is better than expected...what do you think?

When unemployment for those between 16-24 is OVER 50%...what do you think?

As savings runs dry paying down debt....more and more will fail and the deterioration will accelerate moving forward as defaults cause more defaults.

When you bail out the banks and not the citizens in an overleveraged economy.....conditions keep getting worse until the economy evaporates and citizens don't have much left....this is the process Alstrynomics calls Zombulation.....and now many are just beginning to feel the symptoms.

And finally this....

Bernanke Says Fed Will Be Ready to Tighten Policy When Economy Improves

My friends....If Bernanke and his banker buddies tighten upon the citizens any further, there will be nothing left to tighten....they should be easing terms as credit extension is evaporating.

Now ask yourself........if credit is tightening at the fastest rate in history......how can the economy improve if the economy was dependent on credit to generate sales?

That is right...it can't...it won't.... and it will eventually shut down upon the burden of trying to service  the biggest debt load in human history.

Seriously, as Benny B and his banker buddies are shutting down the American economy and taking over the assets....how hard do you think they are laughing at Fools for thinking things are actually getting better just because they are telling you????

It is strange what can happen to a nation when the educated don't think.....amd some of you actually question my 50% unemployment projection if we maintain the same policies???

 

9 Comments – Post Your Own

#1) On October 09, 2009 at 7:32 AM, dickseacup (67.00) wrote:

I think that the next (il)logical step, now that Obama has won the Nobel Peace prize (as laughable as that is), is for the Commander in Chief to escalate existing conflicts or open a new front. War it is.

 

 

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#2) On October 09, 2009 at 7:55 AM, alstry (35.46) wrote:

Actually...your illogic would be logical in the current environment.

How logical is it to let insolvent banks take the assets of insolvent citizens?

How logical is it to bail out and give Free Money to banks but raise interest rates and tighten credit on citizens?

How logical is it to tell people unemployment is under 10% when it is really over 20%.

How logical is it to tell people massive sales declines are better than expected?

How logical is it to print money and tell people you are not printing?

How logical is it for Fools to think that there actually can be a recovery when credit is being cut off at the FASTEST RATE IN HISTORY?

How logical is it to think the economy is improving when tax receipts are evaporating?

I guess if you tell sheep to jump off a cliff without a parachute....if it comes from a source they think is reputable, they will think such an order is logical and jump.

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#3) On October 09, 2009 at 8:40 AM, alstry (35.46) wrote:

Cut off enough Credit....very few will be working...

Engineering and construction services provider Fluor Corp. has cut 500 jobs in the Houston area due to a canceled contract by an overseas client.

And some still question my 50% unemployment projection?

Texas oil refiner Valero Energy Corp. is seeking to eliminate 100 jobs, or 18 percent of its workforce, at its Paulsboro refinery through retirement incentives.

Sunoco Inc., the largest refiner in the Northeast, announced Tuesday that it would indefinitely idle its Eagle Point refinery in Gloucester County, which employs 400 full-time workers and hires hundreds of independent contractors.

In September, Valero said it would idle two units at its Delaware City, Del., refinery, eliminating about 150 jobs.

WHEN YOU CUT OFF CREDIT TO A CREDIT DEPENDENT ECONOMY...THE ECONOMY EVAPORATES...

Fools...you don't need to think too hard on this one...especially when America is infected with a massive debt load that is impossible to service under the current terms in the current conditions.

Pretty soon...State and Local tax receipts will be so low....America will need to tax everything you have simply to maintain soverignty.......unless of course we go to war first.

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#4) On October 09, 2009 at 8:42 AM, FreeMarkets (93.19) wrote:

I agree with dicksecup.  We will escalate in Afghanistan and use it as a base to attack Iran.

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#5) On October 09, 2009 at 8:48 AM, alstry (35.46) wrote:

How stupid are you Fools...thinking America will start a war after its president just won a peace prize is like thinking a banking analyst would upgrade a hotel stock after revenues are evaporating and practically every company in America is slashing T&E budgets.

Marriott upped to buy at BofA Merrill Lynch

Whooops......

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#6) On October 09, 2009 at 9:12 AM, alstry (35.46) wrote:

DYLAN RATIGAN GETS IT!!!!!!!!!!!!!!!!!!

 

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#7) On October 09, 2009 at 9:54 AM, throwerw (29.37) wrote:

it's good to know dylan ratigan is back on the air.

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#8) On October 10, 2009 at 9:37 AM, ayekappy (< 20) wrote:

It's okay Alstry... russiangambit's already on it.  First we take away the right to vote for the poor, then we can start sending them to concentration camps!  That will provide guard jobs and save a ton on medicare and medicaid, not to mention welfare for their little bastard babies.

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#9) On October 10, 2009 at 10:20 AM, ayekappy (< 20) wrote:

Sorry about the above comment... russiangambit didn't call for poor people to be put into concentration camps... I was just a little mad at the time at the idea that someone could want to take away voting rights from people just because of their income.

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