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alstry (35.28)

NOT a Happy New Year

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December 17, 2008 – Comments (2)

In the next few weeks expect a torrent of companies shutting down and firing employees.  HR departments are just preparing the releases. 

State workers are taking pay furloughs.

I am already hearing pretty amazing stories about retail.  Expect companies to cut back on travel dramatically as well as other expenses.  Basically the country is shutting down and we should get pretty strong evidence in the next few weeks into the early part of the New Year.

In the mean time,  banks can borrow money at near zero then turnaround and buy treasuries in practically unlimited quantities.  It is we the taxpayers paying treasury interest so effectivey we are giving banks money and paying them interest on the money we give them....why can't citizens act on similar terms???  Do you think banks have an incentive to loan to you or a business when they can get free guranteed money with interest????

As long as this situation persists....expect conditions to get much worse.

2 Comments – Post Your Own

#1) On December 17, 2008 at 12:30 PM, alstry (35.28) wrote:

My friends...the economy is fuc+ed...plain and simple.

Money and wealth is evaporating much faster then the government is printing it.  Pension funds are running out of money.  States don't have cash to pay their employees. Businesses shutting down and families getting kicked out of their homes by the millions. 

Now idiotic legislators are going to start raising taxes due to declining revnue bases.

The problem is that one needs and income to pay taxes. 

Once the world realizes that our economy was effectively on big and growing ponzi scheme since about 1980...due to ever increasing borrowing and debt creation......it will be like shouting "fire" in a movie theatre as everyone runs for the exit at the same time.

Can you smell the smoke???

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#2) On December 17, 2008 at 1:24 PM, jegr5347 (< 20) wrote:

MarketWatch via NewsEdge :

SAN FRANCISCO (MarketWatch) -- American International Group Inc. said Monday its U.S. life insurance companies sold their interests in $39.3 billion worth of residential mortgage-backed securities to a vehicle owned by the Federal Reserve Bank of New York.

I thought only the rogue holding company that entered into derivatives and swap agreements was what caused AIG to fail?Everyone, including the NY State AG said the underlying insurance companies were sound. If so, why is the Fed buying assest from AIG's life insurance unit?

My term life policy is up for renewal. I wonder if it even is worth renewing. Will they pay if I turn in the keys?

 

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