For S. George - The "Mother" of All Economies Gets Flushed...

[scottishmoney]

The "Mother" of all economies around the world is getting flushed.  Think of it as a necessary, yet painful, flushing of the bowels of financial iniquity into the abyss of uncertainty.  All the whilst our humble blithering politicians sit around in their easy chairs pointing the finger of blame, careful not to point the finger at a past political fundraiser or attaboy.  In this crazy and indeterminate world, we have the Democratic party supporting George W. Bush in his efforts to bailout the banks without account, and the Republican party of George W. Bush thwarting such efforts with a desire for oversight and accountability.

Banks will fail, the government will lose confidence, yet the institutional lending facilities based in Wall St. will survive with the newly socialistic government takeovers that worked oh so well in la belle France in the 1980's when Banque de France tookover many institutions in that country only to burden the French taxpayers with the resultant enormous losses.  Credit will tighten for business and personal loans, which whilst painful, must happen.  Credit was given out like play money to institutions and individuals that had not a prayer of fulfilling the obligation to return the investment.  It was all a gamble, and the house of cards now crumbles into an oblivion once again.  All the while Wall Street institutional lending facilities survive under the protection of the governments umbrella, individuals will continue to have homes foreclosed upon.  Perhaps these individuals will exercise more caution in the future, but more likely they will not. 

Whilst I believe what is transpiring is a bad thing, I believe it a necessary and uncomfortable correction of the sins of the past and recent from greedy financial institutions and even individuals.  A lot of belief that what goes up will just continue going up is found to be wrong, yet again.  Remember what goes up always comes down, always.  Like MK Gandhi said, "Good always wins out in the end, always", so it is with finance.

[Paint Your Wagon]

I am not a wordsmith
Game Over
We are descending into the Kondratiev winter whilst Japan just entered Spring
There is no way half a Quadrillion dollars can reset without seismic catastrophe somewhere or allover
Japan , China and India are best positioned to survive the tsunami unscathed
The oil producing countries maybe

[longnine009]

Debits=Credits.  Japan's 20 year recession is working it's way, however slowly, towards a  credit and the U.S fake economy, however slowly, is working it's way towards the  debit that takes over. The only problem is we're not as civil over here as the Japanese. We'll never survive a 20 year recession without the mother of all social  upheavals.

[Paint Your Wagon]

I have been reading for years every day Sinclair webpage
At the start he sounded like a nut .
Now he sounds like somebody that foresaw this years ago .
For some reason or another he does not want to explain he uses 2011 january as the final date

[S.George]

 

Thank you Scotishmoey and Paintyourwagon:
We depend on U.S.economy, mother of all economies.
When the sub-prime crisis surfaced, several people told that the worest is yet to come.   At that time, I never thought that the crisis  will be like today.
After sub-prime crisis our real-estate prices came down with the speeding of 'falling knife'   None dared to catch it.
Today, nobody is interested in real-estate stocks.   May be, had Mr.Jospeh P. Kennedy Sr., alive, he would have ventured to buy them...as he had done during World War II.
After Lehman's failure financial market is in chaos.   NO BUYERS.
The financial projection of software companies are gloom and doom.
Today I read about the failure of WAMU   Mutual Fund.   They say, the worst is yet to come.
As Scotishmoney quoted Our Nation's Father Mohandas Karamchand Gandhi, good, always win.
Let us wait for that.
George