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alstry (35.74)

Why Die?

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April 04, 2008 – Comments (2)

I see these signs driving along highways where there have been fatel accidents.  They are supposed to be reminders to drive carefully with your head up.

Right now, America has its head in the sand and we about to get run over.

Three months ago, the economy was growing and the job market was strong....today we are in the middle of a recession and facing the biggest financial crisis since the Great Depression.  Who is kidding who?

WHERE DO YOU THINK WE ARE GOING TO BE IN THREE MONTHS?

March retail sales data was a bust.  Sales are slowing for Cisco.  Auto sales are tanking.  Foreclosures are skyrocketing.  Airlines are folding like origami.  And Home Builders are rallying?

Credit is tighening.  Even though the GSEs are expanding limits, requirements to get loans are becoming stricter.  Great, you can borrow a million bucks but only three people qualify.

Until America figures out a way to raise income or lower debt, spending will slow and defaults will continue to rise.........and rise at faster and faster rates as defaults beget additional defaults.  States are preparing to release tens of thousands of prisoners early because the funds are no longer there to incarcerate.

It took just three months to go from boom to facing the biggest financial crisis since the Great Depression.  Could it  take less than three more months to sink us to greater depths than the Great Depression?

Is it time to look up yet?

 

2 Comments – Post Your Own

#1) On April 04, 2008 at 12:48 AM, DemonDoug (84.09) wrote:

i think i'd have lost my  mind (along with my caps point) a long time ago if it wasn't for you alstry.

I'm told that after the BSC bailout, the Fed now has no more ammunition in it's guns to fight off another IB meltdown... you're the bank expert, what do you think? 

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#2) On April 04, 2008 at 7:41 AM, alstry (35.74) wrote:

I am not sure what ammunition the Fed has left.  It is an unregulated private institution with quasi government oversight.

I am sure that individuals, businesses, and government are rapidly running out of money.  The effects are finally hitting the reported numbers.  You should see real world distress explode over the next three months.

We are entering very turbulent times in America, and likely the world.

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