On Mon, Jul 20, 2009 at 9:56 AM, Gruss Gott<grussg...@gmail.com> wrote: > >> Scott wrote: >> >> Yea, umm, do you remember all the stuff we were told was going to >> happen if we didn't pass the stimulus package? >> > > I'm going to tell you secret: we're fecked.
I think its cute you think that was a secret. > > Now I know in the past I've been Doomy DarkCloud, but ... it's worse > than I thought. > > If you add up all of the unfunded mandates, the new spending, the > existing leverage, et al we're roughly $100 trillion in the hole. > That's roughly 7x our GDP. > > It's like earning $50k per year and being $350,000 in debt and, oh, > you're having trouble making some payments. > > That's where we're at. > > This first crisis was driven by de-levering triggered by a tiny little > asset class: sub-prime. > > As unemployment grows, unemployment benefits run out, home prices > continue to fall, baby boomers move from spenders to savers, and > people pull back spending even more we'll have other asset classes > trigger more de-levering: > > * commercial real estate > * credit cards > * prime mortgages > * business loans > > You can expect cycle 2 to begin in a month or two. I don't think I have ever wanted you to be as wrong as much as I do with this. -- Scott Stroz --------------- The democracy will cease to exist when you take away from those who are willing to work and give to those who would not. - Thomas Jefferson http://xkcd.com/386/ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Want to reach the ColdFusion community with something they want? Let them know on the House of Fusion mailing lists Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:300621 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
