Where to start. Since my last post, the global economy has tanked. No bounce-straight down. Announced job cuts are growing day by day. Today we have AT&T 12k, Dupont 2.5 K, plus several other smaller ones. It is getting nasty.
Today, the big 3 go back to congress with tin cup in hand. The US gov't is becoming the owner of more companies-can you spell socialism. This is getting ridiculous. The financial sector is getting massive amounts of capital to stay alive. The big 3 are next. Soon the airlines and homebuilders will be lining up for gov't money. The only problem I can see is where is all this money going to come from. I am not even including the unfunded liabilities regarding social security and medicare. The states are now following-California is struggling with a 10+ billion deficit. Of course the typical response from the political circles is borrow more money, and kick the can down the road. How many times do we have to do that to realize the next generation is not going to enjoy the current standard of living. Planet ME and I want it now generation is driving the economy over the cliff.
Financial Reckoning Day is rapidly approaching.
Despite this, US Treasuries are yielding absurd levels on the pretense of the gov't buying FNM and FRE bonds, plus US Treasuries. This known as monetizing the debt. This could turn out like Iceland-the bonds stay the same price, but the currency becomes virtually worthless. In fact all fiat currencies are in a sad state of affairs.
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