I know the articles conclusion is inflammatory, calling for the worst recession since the Great Depression. It is not my aim to stir that pot. I am hoping that people will just read and absorb all of the financial reasons he gives to support his conclusion. I'm just trying to convey the extent of the futures losses and logjams in the financials and the economy.
Please try to keep an open mind despite the extreme conclusion the author is lead to by the data. I just want you to know the data and think for yourself what could come from it.
I know... I'm just a RAY of SUNSHINE!
Can we be like Houdini and get out of it?
Well, of course. We all know that the houses we live in are worthless, that land is free, that the current infrastructure of the country has no value whatsoever — so of course everything everybody owns is actually worthless.
On the other hand, I don’t I’ll mourn the death of the broker-dealers who did little more than interject themselves in the middle of the process and siphon off quick bucks while leaving others holding the bag.
Ping
"Devaluation" is inflation, just a less loaded word. That "devaluation" is ongoing with two upticks in the rate in the last 6 years. Real inflation right now is very high and at Carter levels. The official numbers are less onerous because periodically those who report the official rate remove the the most rapidly rising prices from the "basket" of prices used to compute the official rate. The proffered rate is not the inflation rate. It does not measure the actual inflation rate but measures, instead, the rate of increase of a few selected prices. Other prices, like oil, are not included because there are other reasons that can be cited for oil's rise.
If there were not inflation, the drastic rise in oil MUST cause a FALL in the average level of all other prices. That is manifestly not the case. The main clue that inflation is Policy is the nonpublication of the M3 measurement of money. That ceased to be published when it began to be obvious that the money numbers therein showed higher inflation rates than advertised by the government.
It is entitled:
The Current U.S. Recession and the Risks of a Systemic Financial Crisis
by
Nouriel Roubini
Professor of Economics at the Stern School of Business,
New York University
and
Chairman of RGE Monitor
(www.rgemonitor.com)
Written Testimony for
the House of Representatives’ Financial Services Committee
Hearing on February 26th, 2008
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Airlines are toast for the next year. Energy prices are absolutely un-democratizing travel to the point that only the very rich will be able to fly soon. EVEN if we start drilling now (and we should), we won't see the benefits for a few years. (Not 10 like the Dems say, but it would take a couple of years from permission/leasing to actual gas at the pump).
The fact that GM is actually in the zone of bankruptcy is seriously troubling---and of course it's not all the cost of energy, but bad management, union pressures, and above all, the contracts years ago that bloated their labor exposure on health care and retirement.
Couple all this with the political situation, which is terrible no matter who wins. McCain might want to balance the budget---but with a Dem Congress and Senate, can he? I seriously doubt it. Will he fight to do so? Are you kidding? Against his "friends" across the aisle?
Obama, on the other hand, wouldn't even try to fix anything, but would try to socialize everything, ballooning our deficits and killing the dollar.
I don't see a lot of sunshine here.
DOOOMED!!! Dogs and Cats living together, TOTAL ANARCHY!
This article is dead on, and so are we. There is nothing you can do, preparing is futile, it’s over /not sarcasm
If you see an iceberg ahead, the moral thing to do is shout the warning. Not let the passengers sleep until impact.
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