billydlight

5 Reasons the Fed's Credit Bailout Will Likely Disappoint

Oh, how it is irratating to hear positive spin. I am with you. I live in Montana and here the local paper has published only 2 articles about our local economy. 1: The bust will not effect us because we are immune to national problems. 2: If recession comes the county and cities are OK because people love Montana.
I ran numbers with a colleague today. We figured out what our actual "buying power" is. Housing, credit, commodities, the number is really small compared to what is currently "acceptable". We honestly don't know how people are making it. Prices must come down. The draw we are ensnared in is that we have lived thru recessions, wage freezes, stagflation and inflation. But, we haven't been in this perfect storm. If property crashes while food and fuel skyrocket(inflate) doesn't that make property more worthless? MY "bullish" recomendation is this...to deflate the dollar. From what I understand, that means more money must disappear. Write down it all. Crash the market. Foreclose the home and sell it to however buys it. Bankrupt the debtor. Eliminate the insolvent banks. Value is an ambiguous term. $1mil condo becomes $1k because that's all anyone will pay. New banks will emerge. Business will be more efficient. The dollar will become stronger because there is less of them. Big Credit Card can join Big Railroad in history. AAA will be AAA. It sucks, it risks world war but this is what happens with fiat currency. Otherwise war may still come, our crime rate will skyrocket, interest on nt'l debt will outpace soc. prgms and we go third world. At least those in hi power positions, CEO's, will still be rich either way right?