ATHELSTAN

Another Depression?

This depression has been in the making for some time now. It's characteristics will be a sort of Chinese water torture of drip, drip, drip as everything goes down, down, and down.

The American family's wealth is built upon inflated home values going back to the 70s. These values were intoxicating to the point where the national mantra and cocktail chatter turned to how real estate can't fail!!! This, of course, led to greater borrowing, extended credit card commitments, and a tendency to eschew savings entirely. Real estate turned into a casino , a roulette wheel, and a Ponzi scheme at the same time.

The crash is inevitable, inexorable, and ineluctable, but don't look for a "black Friday" event to kick it off. The same old groups will be blamed for it as those blamed in the last depression. You can see it now in the chat rooms.

Until the crash blows over, I'm out of stocks and in cash, treasuries and gold.