alstry (35.49)

We All Lived On A Trust Fund

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.