The Last Labor Day???? Time to Get it Right!!!!!
The Tory leader went on: "I think it's extraordinary that the chancellor said it, because – remember – a chancellor of the exchequer has got to think not only 'I must tell the truth at all times' but also 'I must use my words carefully, so that I don't actually create a situation that's even worse, that creates a crisis of confidence'."
Here is the problem....politicians keep saying we are well prepared for a "downturn." The only issue is the problem is NOT a downturn, it is a debt crisis. Not only are we not prepared for a debt crisis, we are the most vulnerable we have even been. EVER!!!!
The manner in which politicians are characterizing the issue like saying you are well prepared to prevent diabeties but the fail to tell you about the spreading Pancreatic Cancer.
We are being treated for the wrong illness as the situation gets worse everyday. EXPANDING CREDIT is the key component to rising asset values. In a DEBT COLLAPSE, asset values can fall between 80-90%.
The only reason FOOL's can't see it is because there has never been a debt collapse in America since the 1870's when over 80% of the family farms were foreclosed. Just bofore that, when farmers were borrowing....everything was booming.
We have been expanding credit for the past 60 years....now banks can't lend anymore. When banks can't lend, asset values crash and money evaporates. If you have a million dollars in the bank and own a house, business, or Farm worth $4 million with a $3 million dollar mortgage. If your asset drops 50% in value and you are forced to sell, your cash evaporates paying back the lender. This situation is playing out many times everyday around America.
Land for Development is already selling for pennies on the dollar. House prices are down 30, 40, 50% and more. Shopping centers are now off 50%. Farms are starting to pull back. Practically the value of everything we own is based on leverage. Stocks, Bonds, Real Estate, ect.....If you put 20% down on a house or business and the value drops 20%, you don't lose 20% of your equity.....you lose 100%. If prices drop 40%, you OWE 20% if you are forced to sell.
Keep believing the crap they feed you if you so choose. Sit back and watch teachers and police officers get fired. Businesses shut down around you. Your house drop in value everyday. Neighbors get foreclosed. All the while your politicians keep telling you we are well prepared for a downturn.
Before its too late, somebody may want to tell them its a DEBT CRISIS before almost all of the savings of almost all Americans is wiped out.
Even if you think you are safe, you are not. At the end, if enough people can't pay taxes....the government will demand those that can to shoulder the burden.
No one is safe...we all depend on each other. The cutomer depends on the employer. The store owner depends on the customer. The landlord depends on the store owner. The bank depends on the landlord. The depositor depends on the bank. The government depends on enough paying taxes.
As incomes evaporate and assets crash, then few will be able to pay anything.....and then what, will our politicans tell us we thought we were preparing for a downturn but I guess we got it wrong? Sorta strange, last time our politicans got it wrong big, we killed a bunch of innocent Iraqis and thousands of our own died as well. This time, we are going to kill ourselves by getting it wrong.
It doesn't matter if you are Democrat or Republican...we must get this right or we are looking down the barrel of a loaded gun. If your local politican doesn't understand the implications of a Debt Crisis...you may want to teach him/her.
Happy Labor Day.....there may not be many jobs for anyone soon. Just ask your TMF bloggers....ask them how much Motley Fool's ad revenues have declined in the past year....the bright shiny building in Alexandria is very expensive to operate.
If we don't get this right soon.....we will all be wronged.