The US is insolvent. There is no way to pay back its foreign debt or private debt. The rest of the world keeps accumulating IOU's. A credit deflation or a hyperinflation is going to result.
Greenspan Releases Report: Amazing Facts & Charts On Home Equity Extraction
- Thread starter ByLoSellHi
- Start date
Quote from dhpar:
daddyeaux - nothing personal. There is nothing wrong with being pessimistic - but why do you make statement that makes you look like a complete idiot?
not pessimistic, just realistic....
CPI,PPI measures are way understated which causes the y/y GDP to not be deflated to the correct amount....
the Fed. knows this and the GDP is positive as reported by applying incorrect deflation math...
to top it off, you're getting butchered by a falling dollar.....
we were an economic colony of the British, now we're an economic colony of Asia......
get it?
sorry guys,
call me what you want, but I retain the notion that recessions are meant to correct excesses and flush bad credits out of the system.....
Greenspan uttered the word recession and was nearly run out of town.....
now Freddy and Fannie are buying subprime junk to try to stabilize the market...
recession? negative GDP?? are you kidding? never heard of it....
afterall, it was McTeer and Greenspan that cooked up "hedonics and substitution methods" to explain why inflation is not "felt" by the comsumer if the consumer settled for less costly goods vs. paying more for the desired item....
point 2: ever wonder why the Fed. stopped reporting M3??? the claim was that is was too costly to compile the data......yea..right...
call me what you want, but I retain the notion that recessions are meant to correct excesses and flush bad credits out of the system.....
Greenspan uttered the word recession and was nearly run out of town.....
now Freddy and Fannie are buying subprime junk to try to stabilize the market...
recession? negative GDP?? are you kidding? never heard of it....
afterall, it was McTeer and Greenspan that cooked up "hedonics and substitution methods" to explain why inflation is not "felt" by the comsumer if the consumer settled for less costly goods vs. paying more for the desired item....
point 2: ever wonder why the Fed. stopped reporting M3??? the claim was that is was too costly to compile the data......yea..right...
Great chart
The average American took on a lot of debt to buy assets. So its misleading to say cash on hand minus debt...you have to add in assets too. Otherwise, you're picking and choosing.
By that index, I'm hundreds of thousands of dollars in the hole. But my net worth is higher than I ever dreamed possible by leveraging debt.
SM
you are correct, but my neighbor who took out a no money down loan and has a home equity loan to buy his new $30K boat keeps bragging to me about how low his monthly payments are.....even though housing prices are dropping and he's upside down on everything, he thinks he's well off....I just looked at him and didn't say anything.....poor guy..
Quote from dhpar:
daddyeaux - nothing personal. There is nothing wrong with being pessimistic - but why do you make statement that makes you look like a complete idiot?
ahhhh the sweet smell of being correct......
http://www.elitetrader.com/vb/showthread.php?threadid=93795