Jet

Can History Show Us the Way Out of This Bear Market?

The '09 Depression has no historical precedent. Oil prices spiked to $150 in July 2008 which instantly crashed everything. The resulting chain reaction is what we are now watching. If they do manage to stop the fall and we see any world economic recovery and growth, oil prices will just spike again and cause the next Oil Crash. This is not a banking or paper problem. The world ran out of oil plain and simple. The only fix is to replace oil with solar energy. We must turn the US into a massive solar collector. The Cost of doing this will be 100% of GDP for 25 years. The cost of not doing it is the end of civilization. Don't get it? Stock markets are not just headed down they are headed for zero...........

Excessive Systemic Debt: The Primary Cause of Our Current Crisis

Yes "Its the debt stupid"

seekingalpha.com/artic...
here is same chart published several months ago

From the chart Normal Debt to GDP is around 150%. We are now at 350%. OK total US debt is then in the range of $50Trillion and about $30Trillion needs to go. This debt ratio can be reduced by Default, Inflation, or Cancellation. This bad debt came from Retirement Savings being pooled and loaned. But there were not enough qualified borrows, so we got sub prime. As socrateazz says many companies and families have borrowed to pay current expenses and used newer debt to make payments on older debt. Bottom line is on average consumers and businesses are insolvent and mathematically can not pay their bills. It will not help to bailout banks and car companies if consumers can not, should not, and will not borrow more or buy new cars.

If they inflate fast enough, we will get hyperinflation
If they do nothing, the world economy will grind to a halt and food will stop moving - Yes that means your food.
The only hope to avoid chaos is some sort of organized debt cancellation - but I give that about 1% odds - odds are 99% we doomed

I predict Dow 4000 and unemployment 20% by The day Obama takes office. The bottom of the Dow could be 2 years away at 1500 or less.