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alstry (35.46)

Why MOAP is so Important

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September 30, 2009 – Comments (13)

By knowing that Social Security is cash flow negative, FDIC is broke, FHA is broke, and Pension Guaranty is broke....you know the underlying economy is failing as those entities are simply a reflection of the economy.

What is key is the above cover a broad section of economic activity....employment, housing, debt etc.....

Further, we also know that government no longer has the funds or revenue streams to cover the above deficits......as a result it must simply print or counterfeit funds.

Although we know MOAP, we have really not felt the effects fully.....yet.  But there has never been a nation in history that has been permitted to debase it currency without massive consequences on its society.  NEVER.....

The fact that you know and have not felt should not give you any comfort.  Many of Madoff's clients thought something was up but enjoyed receiving the checks every month to do anything about it.  Markopolis complained for 6 years, but no action was taken, until it was too late.

We now KNOW MOAP is here....our nation is systematically going broke and now that banks are cutting off credit and cash flow is evaporating across the nation.  As each week passes, more and more will feel....until eventually we all feel.

This is not conjecture.....it is a mathematical certainty based on the current Zombulation policies of cutting off credit to a credit dependent economy, raising interest rates  to the private sector, and only bailing out the banks.

With only a few trillion in savings and tens of trillions of debt, as cash flow declines, eventually savings runs out very quickly.

 

13 Comments – Post Your Own

#1) On September 30, 2009 at 8:30 AM, alstry (35.46) wrote:

NONE OF THIS IS HARD....MOST OF AMERICA IS INSOLVENT OR APPROACHING INSOLVENCY......

If government is broke, we are all broke......and unless we restructure soon, there will be very little left to restructure.

Ex-Moody's employee warned SEC about muni issues

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#2) On September 30, 2009 at 9:19 AM, alstry (35.46) wrote:

NOW YOU KNOW.....SOON YOU WILL FEEL!!!!!!!

 

India faces worst drought in nearly 40 years

CIT Group again on brink of collapse; shares sink: report

Wal-Mart warns of lethargic economic recovery

Gannett boosts note offering to $500 million

French deficit set to rise to new record

Japan needs major reforms for growth, OECD says

Latvian retail sales plunge 30.3 pct

Serbia's JAT Airways flights grounded

Ukraine's Naftogaz seeks debt restructuring

 

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#3) On September 30, 2009 at 9:20 AM, alstry (35.46) wrote:

SOON YOU WILL FEEL WHAT HAPPENS WHEN MONEY RUNS OUT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Study: Thousands of Ohio store workers on Medicaid

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#4) On September 30, 2009 at 9:23 AM, Rebkong1 (< 20) wrote:

alstry have you taken all cash out of banks?

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#5) On September 30, 2009 at 9:28 AM, alstry (35.46) wrote:

Re,

If you can't get cash out of banks......cash will not have any value.

Sorta like making a garden in your backyard....if you are forced to use it to eat, that garden belongs to the whole neighborhood....whether you like it or not.

We can solve this problem relatively easily, we must simply restructure debt.....and do it soon.

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#6) On September 30, 2009 at 9:56 AM, Rebkong1 (< 20) wrote:

i hear what you are saying loud and clear, but im asking with FDIC situation if you have any of your own cash parked in a bank that might not be able to insure your deposts...thats my only ?

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#7) On September 30, 2009 at 10:05 AM, alstry (35.46) wrote:

yes...if the FDIC can't insure....cash has no value.

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#8) On September 30, 2009 at 10:09 AM, carcassgrinder (35.75) wrote:

If the Fed will restructure debt for the banks, why won't the banks restructure debt for it's borrowers.  Have the banks become dependent on usery rates and predatory lending just to maintain a facade of solvency?  Can a corporation operate with integrity and survive anymore?

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#9) On September 30, 2009 at 10:15 AM, alstry (35.46) wrote:

cass,

The answer to your question in the aggregate is NO!!!!

That is why legitmate corporations are going bankrupt everyday.  They simply can't compete with the unlimited supply of debt flowing to the Wall Street Credit Default supported Money Losing companies they are competing with...

Look at Gannett....they just bragged about a finanicial accounting reported profit and paying down $200 million of debt.....NOW TODAY they are borrowing $500 million.....the numbers as reported do not fairly reflect Gannetts problems.....and this issue is now systemic thorughout our economy.....and only NOW is it beginning to be felt.

If we don't restructure very soon...millions of legitimate businesses will be forced to shut down and tens of millions will be unemployed.

Imagine how low tax revenues will drop in that environment.  Our nation is systematically bankrupt....now we must deal with it or it will deal with us.

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#10) On September 30, 2009 at 10:43 AM, carcassgrinder (35.75) wrote:

Al....

    Why do you think the banks refuse to restructure loans to a serviceable rate?  I would think it would behoove the banks to do this in order to mitigate their potential losses.  I would think that collecting 85% or even 75% of the original loan amount would be better than having to write it off.  If I loaned a guy 100 dollars and scheduled him 12 payments at $10 ea., and he came to me and said he could only afford $8 per payment....then I would extend the loan terms or accept the fact that I will only get $96 back on my $100 loan.....either way...it is better than forcing the person into default and then never collecting anything.  Is it bank lawyers that are decouraging this restrucure...is it 'market perception' that is the stopper.....I just don't get it. 

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#11) On September 30, 2009 at 10:47 AM, carcassgrinder (35.75) wrote:

I saw your post on the national bank insolvency....and I am gleening that the reason that the banks refuse to restructure loans is that it will show that they are not viable once loans have been written down by only 1% or 2%.

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#12) On September 30, 2009 at 3:30 PM, Rebkong1 (< 20) wrote:

b/c the bigger banks that will come out of this ..will do so owning everything and everybody cass

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#13) On September 30, 2009 at 3:34 PM, Rebkong1 (< 20) wrote:

when you start to get that they only care about themselves..and NOT you ..you may understand a lot more of what's going on

 

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