[quote author=mtkayak link=topic=79008.msg819926#msg819926 date=1270634227]
Would you sign or refinance a mortgage without reading the terms? They told us about less pay for new hires, anything else, wouldn't you like to know before voting.[/quote]
I'm not in your local, so I know what im voting for. A freeze.
2) I've read before that NEMF reads this board, things like the thread starter make me wonder of they post here too. Also most of the quoted articles are about England's economy, (UK.url).
They may be quotes from a UK newspaper, but maybe you missed the part where it said a debt to GDP ratio of 125% in the
US. Or when Societe Generale mentioned a possible "global economic collapse", that doesn't include the US?
Or maybe being that you're brilliant like I, you already know we have over a trillion dollar budget deficit, $14 trillion in national debt and over $60 trillion in unfunded liabilities as a nation. Errr, the United States.. Incase you think im talking about merry old England. I have to be sure and speak slowly for you.
No system can survive on foreign credit supply, when the USDollar is so undermined and debauched. No system can survive when it depends on asset price inflation as a source deemed as legitimate wealth even by its high priest. That is heresy, as we painfully witnessed. Evidence of the failure of the third myth is the massive flow of jobs in Asian outsourcing during a Chinese industrial expansion, the Fannie Mae mortgage finance faulty foundation and implosion (nationalization ultimately), dependence upon the housing bubble to continue consumer spending (painful reversal underway), growing trade gaps (reversed only by a borderline economic depression), and growing federal deficits (reaching Weimar levels in the trillion$). The continued evidence is the wreckage of the US banking system itself, a fact that few wish to state clearly and honestly. It cannot be revived
"Lost Control and Economic Mythology", Dr. Jim Willie
Is he talking about the UK? Oh wait.. US Dollar, Fannie mae.. Oh, ok.
New data released today seems to support this view, with consumer spending up 0.5% in January.
However, missing from their analysis is any plausible explanation as to why consumers will be able to sustain such spending given the plunge in income and credit, and the lack of available savings. In fact, the same January spending report showed that personal income increased by only 0.1%, while the savings rate slowed to the smallest since 2008.
I would challenge those who fantasize about a consumer-led recovery to describe where the spending money will come from. Most consumers are tapped out, millions are unemployed, and home equity has been wiped out. The only reasonable thing for them to do is to pay down debt and sock away as much money as possible to rebuild their savings.
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That, in a nutshell, is our government’s plan for economic recovery. Print a bunch of money and give it to consumers to spend. This is not a plan for recovery but a recipe for disaster. Those betting that this program can succeed in putting together a healthy and sustainable economy simply do not understand the nature of their wager. The smart money is going the other way.
"Dont Bet On A Recovery", Peter Schiff, President & Chief Global Strategist, Euro Pacific Capital.
“And yet, despite the immutable facts of a reduction in the standard of living for so many, we keep hearing talk of recovery -- which is, by definition, absurd, since a recovery assumes the reclamation of a prior state. The only prior state that has been recovered is the one that Wall Street was operating in before the financial world, as we knew it, ended in a thunderous calamity. In fact, even that picture isn’t entirely accurate since Wall Street has now, de facto, if not de jure, captured at least two, if not all three, branches comprising the Federal Government.
"Illusion of Prosperity Entering Its Twilight", Rick Ackermann, Partner, Blu Fin Financial.
What will it be, foreign governments dumping US Treasuries and other sovereign debt or a massive oversupply of such debt? Probably a combination of both. It is hard to declare a recovery when 92% of small businessmen say they as yet see no recovery and 60% say if it comes, it’s 14 to 18 months away. These kinds of poll results mean less not more spending and the selling of shares and bonds.
In addition we believe mortgage debt, both commercial and residential, will be sucked into the vortex adding to the woes. This is a replay of what occurred in the 1930s in the debt markets.
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As you can see the problems are not going away and they won’t disappear until the system is purged. More than $3 trillion has been poured into GM, AIG, Fannie Mae, Freddie Mac and Wall Street banks and brokerage houses by American taxpayers via the Fed and the Treasury. As a result the biggest violators have become even bigger, which was the intention from the beginning......Not only will seven million more people lose their homes this year creating a 3-year home inventory for sale, but also lenders will get hit with commercial real estate they cannot possibly finance. We see another minimum of four more years of defaults both in the US and Europe. Taxpayers cannot save the system indefinitely, especially when the players that caused all this are back leveraging and speculating again.
Robert Chapman, The International Forecaster, April #1
Enough yet? Maybe this will help;
http://www.rollingstone.com/politics/story/32255149/wall_streets_bailout_hustle/print
Here is a nice set of stats;
The consequences of excessive debt are already painful at the household level. The civilian employment to population ratio, a highly important barometer of the average household's standard of living, fell to 58.2% in December, the lowest reading in 26 years and down from a peak of 64.7% in April of 2000 (Chart 5). Thus, the standard of living has worsened as the debt to GDP ratio has marched steadily higher. With debt to GDP still rising, a further deterioration of the standard of living is inescapable.
"Thoughts on the Endgame"' John Mauldin, Financial Advisor
Oh yea, and in doing further research, I see that the % of US Debt to GDP is 367%, not 125% as reported in those smarmy UK links.
I'm sure you're also aware that this summer brings the highest level of Adjustable Rate Mortgage resets since the loans were first written during the bubble.. Which means more defaults, more forclosures = less consumer spending = less freight.
But go on believing the economy is lollipops like Bernanke and CNBC tell you it is. Keep pumping in 15% to your 401k.. Lots of executives need you to buy stocks, while they're busy selling, quietly.
The economy is not recovering. Before we're all out of jobs when the next economic shoe drops, lets keep the doors open and keep our paychecks.
PS, if you check old posts/threads started by me, you'll see im a driver.. Maybe you can even figure out what terminal im from.
PPS, I'm talking about the.. Uh..
US economy.