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alstry (35.21)

Will America Become Detroit??????

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October 07, 2009 – Comments (11)

Under the current Zombulation Policy, much of America may become just like Detroit....but this time America may not have America to help it out like Detroit.

Thousands Line Up For Stimulus Money in Detroit...

DETROIT -- Detroit's homeless and low-income residents have another opportunity for a chance at millions of stimulus dollars.

The money is available to help low-income residents from becoming homeless and homeless residents to find housing.

Thousands of people lined up Tuesday.

Some people in line falsely believed they were registering for $3,000 stimulus checks from the Obama Administration.

Just like Detroit was dependent on the Auto Industry, America is dependent on the Domestic Leveraged Consumer.  Without massive borrowing, America really doesn't have much of an Economy....whether it be consumer borrowing or government borrowing. 

And without having the reserve currency, America will have a tough time borrowing.

And guess what the world is up to right now?????  Pretty soon, Obama will be facing one of two choices, restructure our economy or attack the world............let's see which one he picks.

Illinois Unpaid Bills Hits Record High; Tax Revenue Plummets...
 

The State of Illinois' pile of unpaid bills has grown to a record-breaking $3 billion. Comptroller Dan Hynes said Tuesday it's never before been this bad at this point in any previous fiscal year. CBS 2 Political Editor Mike Flannery reports that some social service agencies that rely heavily on state reimbursement warn they will soon be forced out of business.

For those of you who think this is like previous recessions.....just as the article states above....it has NEVER been this bad as we have NEVER had this much debt nor dependent on credit to function......and conditions are this bad while we are still able to borrow........what happens when we are forced to live responsibly and within our means and have to pay back a massive amount of debt to the bankers as we bail them out??????????

You think people are angry about health care "REFORM"...just wait until they find out there is no money for health care.

It is simple math my friends.....and in the end....the numbers add up.

 

11 Comments – Post Your Own

#1) On October 07, 2009 at 11:23 AM, alstry (35.21) wrote:

WAR OR RESTRUCTURE...the choices are pretty limited now:

China calls time on dollar hegemony

Arab States Have Launched Secret Moves To Stop Using U.S. Currency For Oil Trading

POLITICS: TROOP BUILD-UP IN AFGHANISTAN MAY BE GAINING FAVOR...

Majority in U.S. Would Back Attack to Prevent Iran Nuclear Bomb

 Russia on alert for Georgia Black Sea 'provocations'

Watch the drums beat louder as the seconds tick off the clock!!!!!

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#2) On October 07, 2009 at 11:28 AM, cthomas1017 (72.98) wrote:

Under the current Zombulation Policy, everything was supposed to have crashed in 09.09.  Oh wait, it did.  We just haven't realized it, so alstry is free to keep blogging.  Oh wait, he's not blogging, he simply posting with commentary.  This way, he can stay true to his word. 

A man is only as good as his word, and alstry's word is worthless.

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#3) On October 07, 2009 at 11:34 AM, alstry (35.21) wrote:

Alstry may be worthless in your eyes...but his CAPS score is amazing...especially compared to yours;)

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#4) On October 07, 2009 at 12:05 PM, alstry (35.21) wrote:

IT IS GOING TO GET A LOT WORSE ON OUR WAY TO DETROIT!!!!!!!!!!!!!!!!!!!!!!

From CalRisk:

Statewide, more than 300 hotels were in foreclosure or default on their loans as of Sept. 30 -- a nearly fivefold increase since the start of the year, according to an industry report released Tuesday.
...
Most struggling hotels remain open, but industry experts believe many properties are likely to be closed down in the months ahead, even if they are not in foreclosure, because they are losing so much money. ...

"I have never seen so many lenders contemplating mothballing properties," said Jim Butler, a hotel lawyer and chairman of the global hospitality group for Jeffer, Mangels, Butler & Marmaro. "It can and it will get worse for the hotel industry."
...
Statewide, 260 hotels were in default on their loans and 47 had been taken over by their lenders in foreclosure, the Atlas report said.

... a leading hotel consulting firm, Smith Travel Research, recently issued a report that predicted no significant improvement for the hotel industry until 2011 at the earliest.

"It's going to be a lot worse than it is now," said Bobby Bowers, senior vice president of Smith Travel Research.

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#5) On October 07, 2009 at 12:13 PM, catoismymotor (36.11) wrote:

# 3 - Weak. So very weak. Anyone that plays the CAPS score card as an arguement of superiority over another player is hoping the targeted player in question is a wet behind the ears newbie that will believe that nonsense.

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#6) On October 07, 2009 at 12:21 PM, alstry (35.21) wrote:

It is now time to look forward and not dwell on the past....we are now heading towards Detroit........as revenues evaporate and jobs lost.....the consequences are inevitable AND FORESEEABLE NOW THAT YOU KNOW MOAP IS HERE.

As soon as revenues start increasing and jobs gained.......then we may head in a different direction.....in the mean time....we are heading straight for Detroit....regardless what the stock market is doing in the short run.

DON'T MAKE INVESTING VERY DIFFICULT...IT REALLY IS PRETTY SIMPLE IN THE LONG RUN.

But there is an increasing probability that we will head to WAR before that ever happens now that the bankers have cut off credit....Obama's choices are becoming much more limited now that the world is contemplating removing the dollar from its reserve status.

Just because you have little understanding of the implications, I still enjoy you being one of my most loyal readers.

Thank you.

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#7) On October 07, 2009 at 12:26 PM, alstry (35.21) wrote:

HERE IS WHAT WE CAN LOOK FORWARD TO.....

Robert Fisk exposed revived discussions by the Gulf States, China, France, Japan, Brazil, and Russia to replace the dollar as the benchmark oil trading currency with a basket of currencies including gold within 10 years.  This proposal is not new and discussions have been ongoing for decades.  But other extraordinary moves in the capital markets suggest we should take this threat to the dollar’s position very seriously.  For example, China has $2.3 trillion in currency reserves (about 70% in dollars), and China knows how to get its way.

In November 2008, Chinese banks said they would no longer play by our rules.  Top tier banks (Bank of China and Industrial and Commercial Bank of China) reneged on derivatives contracts.  They failed to come up with billions in collateral on dollar/yen FX trades, which were out of the money after the yen’s October appreciation.  This should have been headline news in every financial newspaper, but it wasn’t.

Chinese banks defaulted.  They may have been partially motivated by U.S. malfeasance in the capital markets that caused losses in Asia.  The U.S. squandered its credibility and our cover-ups have done nothing to restore it.

Most credit support annex agreements would say that closing out these trades would be an event of default, and then the cross default on all the trades would kick in with the same counterparty. But the credit of the Chinese banks was better than many of their counterparties.  Everyone was forced to renegotiate contracts with the Chinese banks.

From the perspective of the derivatives markets, this is earth shattering.  What would have happened if AIG had done the same thing?  (Hey, Goldman, UBS, and others…you want your collateral?  Well…Stuff It!)

At the end of August 2009, China signaled that state owned oil consumers: Air China, COSCO, and China Eastern could default on money-losing commodities derivatives contracts.

If we had been paying attention, the U.S. should have done everything in its power to correct our mistakes, clean up the mess in our financial system—instead of sweeping it under the carpet—and turned our efforts to maintaining the credibility of the capital markets and the credibility of the dollar.

http://market-ticker.denninger.net/

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#8) On October 07, 2009 at 12:54 PM, GNUBEE (26.93) wrote:

Umm, no

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#9) On October 07, 2009 at 12:58 PM, BMFPitt (78.76) wrote:

I think California is a better analogy.

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#10) On October 07, 2009 at 1:27 PM, cthomas1017 (72.98) wrote:

#5 - Awwwww, it's just the tactic of a two bit, ambulance chasing lawyer...  When the facts are in your favor, argue the facts.  Then the facts don't support you, argue the law.  When the law doesn't support you, attack the opposition.  alstry is trying to provoke me.  I hardly measure my self-worth by my CAPS score.  If I did, wouldn't that be a sad commentary on me?  I guess some people do.  Oh well. :!

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#11) On October 07, 2009 at 1:55 PM, PdoBear (< 20) wrote:

Will America become a nation of excuse making fail? A citizenry incapable of honoring even the simplest of social commitments. Mad recs for this "commentary post" Alstry.

Love the "It's not a blog, it's commentary" freestyle too.  Maybe you can join the Insane Clone Posse and Kid Rock (true representatives of Michigan) as an honorary Detroiter with that.

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