Posted on 02/01/2008 10:08:49 PM PST by B-Chan
This guy needs to take a vacation.
He’s all gonna die.
The sky falling and all
The US economy is orders of magnatude larger than the runner up (Japan?). However, a correction is inevitable.
Haven’t yet read this article....so, just an fyi ping.
2) Own your home. Instead of moving to a larger home when you qualify for loans, work to pay off your existing home mortgage and own your home outright. At the very least, pay down your loan so you have 50% equity in your home, which should insulate you from all but the very worst housing bubble price drops.
3) Stop spending money on stupid overpriced things like Starbucks coffee, soda, brand-name laundry detergent, diamond jewelry and processed foods. Stretch your money by buying low-cost, bulk food ingredients like lentils, brown rice and quinoa.
These three are good - no matter what happens - all seven have merit.
Mike Adams wrote one of the greatest and funniest articles on Human Events I read which was titled something like “thank you World”, which “thanked” the world in a sarcastic tone why they are still standing with America’s help.
His solutions are “unconventionally sound”, and they are good points to ponder. I would prefer to OWN than rent/lease because ownership is the highest level of self-dependence that our forefathers struggled to teach the coming generations of Americans.
His small point on cutting costs like NOT going to Starbucks is simple, but believe me..in the long run, it’s worth it. I don’t tell people how to spend their hard earned money, BUT I TRY to preach self control.
I don't blame you at all for this drivel, yet that was never my world.
The USA has less than 10 years before complete collapse and it sucks
Do you really think the USA will sink in ten years?
lol!
“roof repairs, anyone?”
No surprises there! That was one time I didn’t mind looking the other way when the roof had Guatalamans crawling all over it. I had to sit there for days and watch them though but they finally got it done.
BTTT
“Derivatives have permitted financial risks to be unbundled in ways that have facilitated both their measurement and their management…. As a result, not only have individual financial institutions become less vulnerable to shocks from underlying risk factors, but also the financial system as a whole has become more resilient.”
~~Alan Greenspan, May 2003
“American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage.”
~~Alan Greenspan, February 22, 2004
“The use of a growing array of derivatives and the related application of more-sophisticated approaches to measuring and managing risk are key factors underpinning the greater resilience of our largest financial institutions.”
~~Alan Greenspan, May 2005
“We’re not about to go into a situation where (real estate) prices will go down. There is no evidence home prices are going to collapse.”
~~Alan Greenspan, May 21, 2006
“The damage from the subprime market has been largely contained. Fortunately, the financial system and the economy are strong enough to weather this storm.”
Richard Fisher, Federal Reserve Bank of Dallas President, Apr 4, 2007
“All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.”
~~Fed Chairman Ben Bernanke, May 17, 2007
“I cannot help but raise a dissenting voice to statements that we are living in a fool’s paradise, and that prosperity in this country must necessarily diminish and recede in the near future.”
~~E. H. H. Simmons, President, New York Stock Exchange, January 12, 1928
“Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months.”
~~Irving Fisher PhD, leading U.S. economist , New York Times, October 17, 1929
“If recession should threaten serious consequences for business (as is not indicated at present) there is little doubt that the Federal Reserve System would take steps to ease the money market and so check the movement.”
~~Harvard Economic Society, October 19, 1929
“This is the time to buy stocks. This is the time to recall the words of the late J. P. Morgan... that any man who is bearish on America will go broke. Within a few days there is likely to be a bear panic rather than a bull panic. Many of the low prices as a result of this hysterical selling are not likely to be reached again in many years.”
~~R. W. McNeel, market analyst, as quoted in the New York Herald Tribune, October 30, 1929
“Several brokerage houses tumbled; blue-sky investment companies formed during the happy bull market days went to smash, disclosing miserable tales of rascality; over a thousand banks caved in during 1930, as a result of marking down both of real estate and of securities; and in December occurred the largest bank failure in American financial history, the fall of the ill-named Bank of the United States in New York.”
~~”Only Yesterday: An Informal History of the 1920’s” by Fredrick Lewis Allen
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
~~Ludwig von Mises
In some respects it is good but in others the strength is an illusion having to do with the easy credit and over-consumption.
For example, if I purchase a ten million dollar house and put it in a conspicuous location on top of a hill, fill it with the latest electronic gizmos and then sign up on the "house parade" tour (where people ride around in little busses and tour homes), people will be impressed. But they are confusing debt with wealth. They don't know I took out a stated income loan with no down payment and an adjustable mortgage with a teaser rate or that I subsequently utilized a home equity loan to buy the furniture and goodies inside.
They don't know that the lenders took risks far in excess of any prudent business decision when they shoveled in the money. They don't know that literally hundreds of people in the mortgage, banking, real estate, and electronics industries were employed partly as a result of this fraud I undertook. They don't know that the loan has been bundled, repackaged, sliced and diced until it is no longer recognizable and shipped overseas and back again. In fact, the current holders of that loan don't even know how much it is worth at this time.
So, yeah, Boeing makes a lot of planes and it and a few other companies are really impressive. Much of the rest is smoke and mirrors built on top of a house of cards.
When I was in college in the sixties, it was confidently averred to me by a really smart guy ( who is probably rich as hell right now, if he ain’t dead ) that the end would come before 1970.
Of course, one might conclude that we must be way overdue!
You’ve got the best potential life that is conceivable. Right now.
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