Britishsteel

Cramer's Mad Money - Common Investment Mistakes (1/2/09)

Canary how do you propose we pay for Obama's infrastructure deals? Through more printing of DEBT? we do not print money we print DEBT! And who pays for this DEBT? The taxpayer? AND that is contingent on the taxpayer still having a job because debt is issued based on production and production in the governments world is based on paying off debt from the worker earning money and paying taxes . So now with unemployment growing by the month and less workers paying taxes the end result can only be higher income tax and local property taxes and of course all sorts of new taxes . So my question to you is, are you really that ignorant?
Now if GM has BORROWED money from the government at 8% and then is turning around and lending this cash at 0% to people with a less than stellar credit rating{ 620 FICO is acceptable for GM to lend } where are they making money ? You need to study economics dude. And as far as oil prices go its due to deflation and not less demand people are scared and want cash my man not willing to speculate here. oil is being driven up now by geopolitical tensions as is gold. As far as surplus cash? you gotta be kidding me . I would suggest you prepare for rioting and civil unrest like our military is being trained for right now! We have been already threatened with martial law by Paulson to get his bailout bill passed and wheteher you know it or not Bush has signed into law that the president can declare martial law at any time without congressional approval. You my friend have been duped take another prozac will ya?

Cramer's Mad Money - Common Investment Mistakes (1/2/09)

The mistake people make is listening to the so called experts and phd's who created this financial terrorism inflicted on the taxpayers of the United States of America.They lied to you and will continue to lie to you. The stock market is not a bank account although they would have you believe that.
What government has done to date and proposes to do cannot work any more than it did the last time. We know this for a fact because it was done just seven years ago and failed to produce lasting prosperity.

These actions failed (and will again) not because they were "not big enough" or "ill timed" or any such claptrap - they failed because it is mathematically impossible for them to succeed.

The problem is that there is too much debt in the system; adding more debt to the system simply makes the problem worse at an exponentially-increasi... rate.

It is impossible to fix a problem that is best explained as "too much" of something by adding more of that same thing.

This is true whether the "too much" is a drunk who wants a bottle of whiskey, a crackhead who wants another hit, or a heroin addict who begs for another shot.

You can't solve any of their problems with more of what ails them any more than you can solve a debt problem with yet more debt.

Our government's actions to date and Obama's plans will fail; any "benefit" that appears will be fleeting and simply compound the necessary pain that we must take in order to clear the economy.

Irrespective of whether the bankers, homeowners and government like it or not, the insolvent will be forced into the open and bankrupted. We are only arguing over whether the government does the right thing and forces it to happen now or whether it occurs as part and parcel of a full-on economic (and possibly government, if they don't quit taking on debt themselves!) collapse.

Those are the only two choices.

There is no other solution that is mathematically possible, no matter what you are told - or by whom.

I strongly suggest that you prepare for our government to do the wrong thing, and to lie to you for as long as it is able.
exerprt from Karl Denninger. All rights reserved.