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Global megabubble? You decide
CBS MarketWatch ^ | June 26, 2005 | Paul B. Farrell

Posted on 06/27/2005 5:48:36 AM PDT by blueberry12

Real estate bubble. Clues: Speculators driving prices. Lenders offer cheap money, short-term loans. Home-equity loans fund short-term spending. Fed chairman sees minimal froth.

Energy and oil bubble. Clues: Crude hits another record. Political turmoil in oil-producing nations. Consumers buy gas-guzzlers at record pace. GM, Ford in trouble.

Foreign-trade deficit. Clues: Monthly deficits top $50 billion. This year's deficit will beat 2004's $617 billion. Foreigners now own $2.5 trillion of America.

Federal-budget deficit. Clues: Federal debt now $7.8 trillion; add another $400 federal deficit this year. Corporate pensions underfunded. Clues: Airlines, auto, other manufacturers heavily burdened, default to taxpayers.

Local government pensions deficits. Clues: A near $400 billion mess draining local taxpayer resources.

Weak U.S. dollar. Clues: Fear China and other foreign powers will replace dollar reserves. Warren Buffett now betting $20 billion on foreign-currency hedging.

Social Security deficit. Clues: No choice, cut benefits or raise taxes; politicians hate both, so it'll get worse.

Health-care costs. Clues: Burden shifting to employees. Costs above inflation. 43 million uninsured.

Medicare deficit. Clues: Going broke faster than Social Security. Prescription drug benefit added an unfunded $8.1 trillion. Long-term estimates over $36.6 trillion.

Personal-savings shortfall. Clues: We consume not save. National savings rate is zero, down from 8% two decades ago. Average household net worth less than $15,000, excluding home equity.

Consumer debt bubble. Clues: We're living beyond our means. Consumer debt at $2 trillion. At 13%, household interest as a percent of income is at all-time high. Personal bankruptcies rising.

Homeland insecurity. Clues: Minimal legislation to protect ports and chemical plants. Federal budget even cut border patrol 90%. Vigilantes patrolling.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy
KEYWORDS: bubble; burst; business; deficit; economy; loans; loss; realestate
Apparently he is a very sad, pessimistic author.
1 posted on 06/27/2005 5:48:37 AM PDT by blueberry12
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To: blueberry12

"Federal budget even cut border patrol 90%."

This is an example of why we will never get spending under control. The proposed INCREASE was cut 90%, not the border patrol itself.


2 posted on 06/27/2005 5:50:16 AM PDT by BeHoldAPaleHorse
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To: BeHoldAPaleHorse
You have a feeling that the author is trying to convey "It's Bush's fault."
3 posted on 06/27/2005 5:53:40 AM PDT by blueberry12
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To: blueberry12
It's Bush's fault, just like everything else.
4 posted on 06/27/2005 6:07:55 AM PDT by b4its2late (I saw a woman wearing a sweat shirt with "Guess" on it. So I said "Implants?" She hit me.)
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To: blueberry12

And there's hamburger all over the highway in Mystic Connecticutt.


5 posted on 06/27/2005 6:16:42 AM PDT by tom paine 2
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To: blueberry12
You have a feeling that the author is trying to convey "It's Bush's fault."

Convey?

The guy's a friggin' skywriter...

6 posted on 06/27/2005 6:21:15 AM PDT by IncPen (There's nothing that a liberal can't improve using your money...)
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To: blueberry12

I gather that "Mister" Farrell is a graduate of the Chicken Little School of Journalism...

Such hyperbole!

Such bathos!

Such "C-S"...


7 posted on 06/27/2005 7:00:00 AM PDT by pfony1
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