We are broke…..
When we get back to even we will begin to buy, invest and create jobs. Broke is a temporary position. Except for those of us who will be retiring in the next few years.
Millions of us!
The big bust is yet to come. We will have plenty of printing press money soon. Jobs will be given out to anyone who shows up and clocks in.
All government created and paid for, mostly.
Expect gas to hit 7 or 10 bucks in the next year or so barring a complete collapse of OPEC.
Which could happen.
Then the sky’s the limit.
Tax revenues will boom as we get hit with big tax hikes to pay the government bonds to the Chinese. We have to pay no matter what or it’s curtains. They will insist or Wall Street tycoons will have to jump out the windows. (dream on!)
History tells us that financial collapse occurs in fiat money systems when the economy runs out of borrowers and everyone stops spending and saves for future spending. (Why else would we save?)
Remember when gas prices went through the roof and too many broke dicks went bust. So broke they couldn’t buy gas and eat at the same time.
Let alone pay 50 % of their take home pay on crappy little house 30 miles from work.
Those guys have been wiped out. Time for another round of boom and bust until we run out of suckers again.
Yes we will!
P.S You’ll need a government job or your company needs a government guarantee to survive or as I’m doing, open a small and discrete side business. Cuts down on taxes until I get my SS check.
Then I disappear from the radar. (Heh heh)
The trouble with the economy is that the banks aren’t lending. The reality: The economy is in trouble because American consumers and businesses took on way too much debt and are now collapsing under the weight of it. As consumers retrench, companies that sell to them are retrenching, thus exacerbating the problem. The banks, meanwhile, are lending. They just aren’t lending as much as they used to. Also the shadow banking system (securitization markets), which actually provided more funding to the economy than the banks, has collapsed.
The banks aren’t lending because their balance sheets are loaded with “bad assets” that the market has temporarily mispriced. The reality: The banks aren’t lending (much) because they have decided to stop making loans to people and companies who can’t pay them back. And because the banks are scared that future writedowns on their old loans will lead to future losses that will wipe out their equity.
Bad assets are “bad” because the mark