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Guest yobob1
Yobob,

Maybe I am wrong, it won't be the first time and surely not the last. If they succeed in getting money out of treasuries and back into stocks, confidence, spending, and jobs will re-emerge. If not, then maybe the scenario of bread lines that you seem to hope for will come to fruition.

 

But old buddy, for the first time, I am actually making money in the markets, and it is not by reading the doom and gloom of Cross Currents or anything else.

 

As for your last comment, I do not take Prozac. I don't see why you are unable to make your case without attacking me on a personal basis, you've done this before. If you disagree that's O.K. make your point or just ignore my posts. Why are you always so angry?

I apologize for the Prozack comment. I've been battling the "happy crap" for about 4 years now when my alarm bells first went off, and I remain frustrated at how many people still buy the 2nd half recovery bullshit. Recovery is always just 6 months away.

 

A restoration of "confidence" will not turn this economy around. The problems are not phantoms that can be exorcised by willing them away. They are very real and they are the result of 30+ years of wild fiat creation, legislative and tax based decisions which have allowed American corporations to behave irresponsibly and basically gut the industrial base of this country for short term gain, and an enormous growth of government at all levels which has resulted in the productive 40% of the people supporting the remaining 60% who are either directly employed by government or suckle at the government teat in way or another.

 

As to hoping for bread lines, that is not my wish, but we are sure as hell headed that way. All of the wild inflation of money supply by the GSE's and the feed, unprecedented slashing of rates, and the tax cut, has managed to do so far is to keep the bubble from deflating, not by starting to cure the problems, but by increasing the rate of debt growth. We are now at the point where it takes over $5 of new debt to create $1 of GDP growth which is wildly overstated by the inclusion of government in GDP. Government has no place in GDP. It produces nothing and only spends what it takes from the productive side of society.

 

If they succeed in getting money out of treasuries you are implying a rising interest rate which would put a very large nail in the coffin of the GSEs, kill the one thing that has kept the real economy from imploding - housing, and basically make all the debt in the system more expensive to service at at time when servicing the debt in the economy is consuming almost 60% of corporate profits and real world household debt levels are at historic highs.. In addition with the dollar already weak a falling price on treasuries could start a stampede by foreigners out of treasuries. That might not be good - they hold about 40% of those. Better watch what you hope for.

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