Use access key #2 to skip to page content.

alstry (35.02)

We All Lived On A Trust Fund

Recs

11

July 15, 2010 – Comments (4)

When you live in a consumer based economy.....you need massive amounts of credit injected into the system so that consumers can consume.  It is the consumption by the consumers that drives jobs, allowing the producers to consume as well.

Banks make lots of money issuing the credit.....businesses make lots of money taking the proceeds of the credit.....and consumers have lots of fun spending the credit.

BUT WITHOUT CREDIT.......THERE IS NO CONSUMPTION.

And with no consumption our economy shuts down because 2/3 of the economy is based on consumption.....

Taking away credit in a consumption based economy is sorta like living on a trust fund and taking it away.......

And for the past ten years, much of our consumption and economy was simply based on borrowing and consuming massively........cities, counties, states, schools, hospitals, families and businesses...

The only reason most Fools work is because we consume massively.....and now that Wall Street is cutting us off of credit......we can't consume anymore and our economy is imploding.....

You wonder why we would bail out Wall Street when Wall Street is shutting us down?

At this point, the trust fund is running dry as Wall Street has basically outsourced most of the functions in America......

Where we go from here is anyone's guess....but as Wall Street reports decent profits....expect more and more of main street, state and local government, schools and hospitals, and families plus small businesses to shut down....as Wall Street cuts us off of credit and we bail Wall Street out.

4 Comments – Post Your Own

#1) On July 15, 2010 at 5:30 PM, alstry (35.02) wrote:

Proof that the middle class is being wiped out

If there is no middle class....there will be much fewer rich.

Report this comment
#2) On July 15, 2010 at 6:23 PM, alstry (35.02) wrote:

Trust Fund has run out of money......Benny just hasn't told you yet......

Study Shows 75% of School Districts Expect Teacher Layoffs Next year

75%.....

90% decline in commercial real estate sales...

80% decline in new home construction.....

2/3 of architects unemployed.....

80% of mortgage companies out of business....

Over 200 million Americans directly or indirectly dependent on a government check to live......

 

Report this comment
#3) On July 15, 2010 at 9:18 PM, tomatoflu (< 20) wrote:

China downgrades US credit rating.

Report this comment
#4) On July 15, 2010 at 9:24 PM, tomatoflu (< 20) wrote:

We need more ratings agencies to create 'trust'.

The manufacture of ratings agencies will be a huge industry in the digital future....in my view.

Report this comment

Featured Broker Partners


Advertisement