THE MARKETS ARE STARTING TO REALIZE THAT THE "CURE" FOR THE CRISIS IS NOT BEING ADDRESSED BY THE FED...
THE FED IS SIMPLY NOT WILLING TO ASK THE RIGHT QUESTIONS...
SO HOW CAN WE EXPECT THE RIGHT ANSWERS...!
FIRST...THIS IS NOT A LIQUIDITY CRISIS...IT'S A DEBT CRISIS THAT HAS BEEN CAUSED BY A STRUCTURAL CHANGE IN THE US ECONOMY...NAMELY DE-INDUSTRIALIZATION.
FRANKLY I DON'T KNOW HOW TO SOLVE THIS CRISIS...BUT SINCE EASY MONEY CAUSED IT...I DOUBT THAT MORE EASY MONEY WILL CURE IT...
MY HUNCH IS THAT THE CURE IS REALLY A RISE OF RATES...THAT WILL ALLOW MOM AND POP INVESTORS TO GET A 5% YIELD AT THE BANK FOR THEIR CD's.... AND NOT FORCE THE LITTLE GUYS TO SPECULATE IN THE MARKETS FOR YIELD...
WE HAD 5% CDS...AND MORE! UP UNTIL ONLY A FEW YEARS AGO...
THEN SUDDENLY CREDIT WAS EVERYTHING... NOBODY PAID WITH CASH!!
HOW LONG HAS IT BEEN SINCE YOU SAW ANYONE IN LINE AT WALMART OR TARGET PAY IN CASH...! HARDLY EVER...
AND NO THEY DON'T LOOK LIKE THE FREQUENT FLIER TYPE ...AS I HAVE SAID REPEATEDLY...!!
THE PROBLEM IS THAT COMMON FOLKS WERE FORCED TO SPECULATE FOR MONEY...EVEN AS WAGES FELL...AND THE "SOURCES" OF MONEY BECAME...THE HOME EQUITY "ATM"...OR THE CREDIT CARD...WHICH WAS THEN "PAID OFF" WITH A REFI OF THE HOUSE...ALWAYS AT FAIRLY LOW INTEREST RATES...
THE AGE OF DEBT IS OVER IN AMERICA...
SOON EVERYONE WILL BE PAYING CASH...AT WALMART...!!
UNLESS AND UNTIL THE FED "GETS REAL" WE WILL ONLY KEEP SPIRALING DOWNWARD...
