Dusty

Watch Bank of America to Understand Where Economy Is Going

Subprime is over, all will be well! Uhnnn. . . Does anyone remember the spring of 2008? And then the summer of 2008? And then. . . the fall of 2008?

Now the credit card balances, soon the derivatives, then the Alt-A and other ARM mortgages will all come home.

What has occured so far, inclusive, is equivalent to the spring of 2008. Calendar 2009 will compare with the summer of 2008. Fall and winter is on the way, calendar 2010 and 2011 and some of 2012. Thirty consecutive months.

Let us see who or what survives. It will very likely be a new world by 2015.

BAC and others do not need to be nationalized. Having the US Government as a majority shareholder with major representation on the board might be enough and easier to back out of by 2020.

Historic Financial Collapse Underway?

The hue and cry about how evil the "Fiat" currency is ignores reality. A century or slightly more ago all money WAS gold or silver. Coins made of the real thing. A small amout of paper representing the real thing in government storage. Already there was not enough to go around. There was no way to increase the supply of the comodity and people did not have the cash to pay for goods and services or to be paid. The will to do work, the manpower, the goods (as in wheat, meat, manufactured products) were there: there was not enough coin or currency to conduct commerce and barter only goes so far, too. The only answer then and even more now is "Fiat" money.