CLEARLY MORE "LIQUIDITY" IS NOT THE ANSWER...
ESSENTIALLY THE AMERICAN CONSUMER AS BEEN ABUSED FOR SO LONG BY WALL STREET AND WASHINGTON THAT THE CONSUMER HAS SIMPLY COLLAPSED...
STAND IN LINE AT WALMART...OR TARGET...DOES ANYONE PAY IN CASH... NEVER!
BUT THOSE CREDIT CARDS HAVE LIMITS...
FURTHER THE MORTGAGE DEBACLE IS CAUSING A MORAL HAZARD PROBLEM...
MANY PEOPLE SIMPLY DON'T WANT TO OWN A HOUSE THAT IS NOT GOING UP 10% OR 20% PER YEAR... NEVERMIND THE PAYMENT...
AND OTHERS WHO ARE STRUGGING WITH HIGH PAYMENTS...ARE NOW LOOKING TO "DEFAULT" AND JOIN THE LINE AT THE "BAILOUT WINDOW!"
WHO WOULD ACTUALLY PAY THEIR MORTGAGE NOW!! ONLY A FOOL!!
AFTER ALL...HELP IS ON THE WAY...BUT ONLY IF YOU ARE IN DEFAULT!!
I WOULD EXPECT MORE AND MORE MIDDLE CLASS MORTGAGORS TO LINE UP FOR A HAND OUT...NO MATTER WHO IS IN THE WHITE HOUSE...
THIS IS THE RESULT OF LACK OF MORAL HAZARD...WHICH HAS NOW BEEN REPLACED BY THE BAILOUT...
AND WHERE DO THE BAILOUTS END... WHO IS "NOT WORTHY" OF A BAILOUT NOW...?
THIS IS THE STUFF OF HYPER-INFLATION!
SHADES OF WIEMAR GERMANY IN THE 1920'S....WHEN MASSIVE DEBT...AND A CUT OFF OF GLOBAL CREDIT CAUSE THE WORST HYPER-INFLATION EVER SEEN IN A MODERN INDUSTRIALIZED ECONOMY...
UNTIL NOW...?
