ONE THING THAT HAS BEEN MISSED IN THE FINANCIAL HYPE IS THAT THE "DOLLAR BUBBLE" IS BURSTING...AND THAT IS THE REAL PROBLEM...!!
FOR THE LAST 20 YEARS THE FED HAS BEEN FUNDING EVERY STYLE OF SPECULATION... STOCKS, REAL ESTATE, BONDS, DEBT AND EXOTICS...
THE PROBLEM IS THAT ONCE THE SPECULATIONS WERE "FLOATED" THE STREET MOVED ON TO THE NEXT...
THERE WAS NO THOUGHT OF HOW THESE SPECULATIONS WERE GOING TO FUND THEMSELVES...THE FINAL INCARNATION OF THIS NONSENSE BEING THE SUB-PRIME DEBACLE...
NOW THE FED HAS TO DECIDE IF IT "WANTS TO" FUND (BAILOUT) THE SPECULATIONS IT HAS ALLOWED WALL STREET TO CREATE...
ODDLY, THE REALIZATION THAT THERE ARE MORE "FALSE DOLLARS" IN SPECULATIVE INSTRUMENTS...THAN THERE ARE REAL DOLLARS TO FUND THEM...HAS CAUSED A RUSH TO THE DOLLAR!!
REMEMBER A REAL DOLLAR IS BETTER THAN A MERE SPECULATIVE DOLLAR "TIED UP" IN SOME INSTRUMENT OF DOUBTFUL WORTH...
MY HUNCH IS THAT THE SURGE IN THE DOLLAR...IS MERELY A ODD ANOMALY...THAT WILL SOON PASS...
THE DOLLAR BUBBLE IS BURSTING...AND THE FED SIMPLY CAN NOT PRINT MORE MONEY TO FUND THE MASSIVE AMOUNTS OF "FALSE DOLLARS" AND "FALSE DOLLAR BASED ASSETS" NOW ON THE BOOKS...
CURIOUSLY THE FINANCIAL COMPANIES ARE REALLY THE WORST OFF... THE REAL ECONOMY STOCKS ARE HOLDING UP WELL ... SO FAR.
OF COURSE THE CONSUMER IS TOAST! THE HOME ATM IS CLOSED...AND PERHAPS EVEN THE "ATM HOUSE" ITSELF IS FORECLOSED... ESPECIALLY IN CALIFORNIA!!
WAGES AND JOBS ARE PUNK...AND CONSUMER DEBT IS HIGH...THE FEDERAL GOVERNMENT IS A HOPELESS BASKET CASE...LOOTED TO THE BONE AND IN HOCK TO CHINA!!
(WELCOME TO THE WHITE HOUSE JOHN AND SARHA!!)
SO THE CONSUMER IS ALSO 'SCRAMBLING' JUST LIKE THE BANKS...!!
ALAS, THE EVILS OF DEBT AND SPECULATION AGAIN ARE REVELED...TOO LATE.
BUT ANY READER OF THIS BLOG KNOWS THAT THESE 'EPISODES' ARE COMMON IN HISTORY...AND THE RESULTING WIPE OUTS ARE WELL DOCUMENTED...
STAY TUNE AS THE US BANKING SYSTEM IMPLODES... AND REMEMBER WE HAVE BEEN THE MAIN SOURCE OF GLOOM AND DOOM ON THE NET FOR NEARLY 10 YEARS...!!
