EVERYONE KNOWS THE US CONSUMER WAS SPENDING AND "LIVING OFF" THEIR "BUBBLE EQUITY" IN THEIR HOMES AND STOCK MARKET PORTFOLIOS FOR YEARS...
THEN, WHEN THE BUBBLE BURST...THERE WAS NOT ONLY NO EQUITY...
THERE WERE MASSIVE "UNDERWATER" ASSETS ...AND UNPAYABLE DEBT...
BUT...CONSIDER:
DID CORPORATIONS DO THE SAME THING...? OR WORSE?
REMEMBER, CORPORATIONS WERE GREATER BENEFICIARIES OF THE GREENSPAN BUBBLE ECONOMY THAN INDIVIDUALS...
COULD THE COPORATE SECTOR BE LITERALLY "UNDERWATER" IN TERMS OF EQUITY AND SAVINGS MORE SO THAN THE CONSUMER....?
AMERICAN CORPORATIONS HAD ACCESS TO MANY MULTIPLIERS OF RISK...LIKE DERIVATIVES AND OTHER EXOTIC FINANCING DEVICES...
NOT TO MENTION THE INCREDIBLE "BUBBLE MONEY" OF STOCK VALUATIONS...AS WELL AS CORPORATE BONDS...
I SUSPECT THAT THE US CORPORATE SECTOR IS EVEN MORE BROKE THAN THE AVERAGE CALIFORNIA CONSUMER...
CORPORATE RELIANCE ON EXOTIC "BUBBLE MONEY" AND BUBBLE EQUITY...AND THEIR SPENDING OF THAT "BUBBLE WEALTH" WAS EVEN WORSE THAN THE AMERICAN CONSUMER...
THE AMERICAN CORPORATION COULD BE EVEN MORE UNDERWATER ...THAN THE AMERICAN CONSUMER...
CORPORTIONS HAVE BEEN TRADING "TWO $500 CATS" FOR "A $1000 DOG" FOR YEARS!! THEN LATE LAST YEAR REALITY HIT...
HENCE, OUR ZOMBIE BANKS...THE COLLAPSE OF FANNIE AND FREDDIE...AND GENERAL COPORATE DECLINE.
ARE WE ONLY SEEING THE TIP OF THE ICEBERG AS FAR AS THE BANKRUPTCY OF THE AMERICAN CORPORATE SECTOR IS CONCERN...?
THAT'S WHY THERE ARE THESE "SERIAL BAILOUTS"...
WITH NO END IN SIGHT...
GOLD IS THE ONLY ASSET TO HOLD NOW...
EVEN CASH MAY BE UNSAFE...WITH GLOBAL SERIAL DEVALUATIONS NOW IN LOCK STEP WITH THE DOLLAR...
