Global Economy Bursting?

[Terrel L. Shields]

Great information about the future of our education system

depressing, too.

the trillion dollar student debt bubble

It ultimately will burst and the government will buy those "bonds" backed by crapping loans and call it Quantitative Easing IV or V or VI...whatever... and in doing so there is no moral hazard to borrowing money you cannot pay back nor lending out money to people you know can't pay it. Nor any moral hazard for the schools to push students to borrow more to get an education that is getting less and less relevant by the day.

 

[Big ole Boy]

Don't be a patriot to a ghost

Thus there is no moral hazard in taking food stamps since the government has abandoned the currency and the real world of inflation, and real jobs etc. Its every man for himself. Why be patriotic to a currency that stabs you in the back.

 

[rrwolfpack]

Quantitative easing is going to end the same time governments around the world can make agreements on how to reduce debt burdens. The problem here is Congress can't agree on anything so the Fed has stepped in numerous times during this "recovery" for the bond buying programs or whatever you want to call them.

I remember before QE3 was announced, Sen Schumer told Bernanke to do something because we (Congress) can't agree on anything. That's not a good sign. Hopefully with the election behind us common ground can be found because monetary policies are losing their luster during each round of bond buying.

 

[Randolph Kinney]

Obama seeks $1.6 trillion in tax increases, $50 billion in new stimulus

http://www.marketwatch.com/story/ob...-increases-wsj-2012-11-29-1791428?siteid=bnbh

 

[Terrel L. Shields]

Sen Schumer told Bernanke to do something because we (Congress) can't agree on anything.

Schumer is the protector of Wall St....contrary to popular opinion that it is Republicans. Dimon and Blankfein are Democrats. So we still have the same problem. The new proposal to add $50 BILLION in stimulus is an effort to make Republicans give in to taking a serious tax increase without dropping spending a dime. They ought to agree to it so long as the Democrats take credit for it....When unemployment hits 9% again in late 2013, the Demos up for re-election will wet their pants.

It's 1981 all over. Reagan got tax reform...but he had to let the Democrats keep on spending. It resulted in high deficits. What our nation is about to embark upon is a repeat... More spending, high deficits. Lip service to "cutting" anything.

But never fear. Medicare and SS will be cut. To cut them we only have to do nothing and then our creditors, China, Japan, Korea, etc. will tell us what to cut a few years down the road...just like the EU is doing Greece and Spain.

 

[rrwolfpack]

I totally agree with you Terrel that Schumer protects Wall St, I mean he is a NY senator where many major financial institutions have their headquarters.

At least a proposal has been put on the table. Its better than proposals being offered by both sides so now they have something to talk about. It's going to a long December that's for sure.

 

[Terrel L. Shields]

At this point I can see some case to be made for simply going over the cliff and letting the draconian cuts happen. But if I were a Republican I would roll over and play dead. I would say, "Hey, you won. Take the credit for whatever plan is offered, and I've at a minimum, not vote against it." And then if the economy tanks, Obama can get the credit for it, and they won't get blamed.

I see almost no difference in the various proposals as far as outcome goes. See my Taleb post. The rich (Wall St.) is gambling but they have "no skin in the game"...only the taxpayers have skin in the game and as long as we can suck it up, we the taxpayer, will pay the penalty. Only when we get as fed up as the Tea Party was, as fed up as French Peasants in the Revolution....and the gulliotine starts working full time on the royalty of this nation, nothing will change.

 

[gojira]

Only when we get as fed up as the Tea Party was, as fed up as French Peasants in the Revolution....and the gulliotine starts working full time on the royalty of this nation, nothing will change.

Man it's comforting to see that more and more people are following in this line of thought nowadays! I'm fairly young but in the pre-internet days I really don't think this was a commonly held belief. If I had to guess I'd say 50% or more of the working class has caught on as of late.

 

[EDWARD BERRY]

Never Happen.

Most People Work For Wages--all Justice Dept Has To Do Is Attach All Their Funds. Wages, Bank Accounts, File Liens On Property And In 90 Days They Are Toast.

They Will Pick You Off One At A Time. (like The Poultry Companies Did-do)

 

[Terrel L. Shields]

Ed
We are losing the family farm, the mom & pop shop, and the small businessman (5 or less employees) and the main reason is not big bad chicken companies, Wall St. per se, and WalMart so much as taxes, government regulations, and an incredibly unlevel playing field.

Mississippi outbid Arkansas for a Toyota plant. Toyota gets a bye on taxes and gets all sorts of freebies, - roads, infrastructure, water...whatever they wanted, from the government in return for jobs. The taxpayers of Mississippi get hammered. As a consolation prize, Arkansas gets an HP center....and look at what HP is doing. It could easily close in the next year.

Mike down at the lumber company hires a new guy and gets nothing but workman's comp and higher taxes. When Jim at the auto shop needs to buy a $50,000 Sun machine so he can work on newer cars, he gets no property tax break and has to depreciate out the machine. It's a totally unlevel playing field. McDonalds, Wallyworld etc. all used to hire older workers and young workers and get a huge tax break...But does that work for Timber Taxidermy? or Pioneer Pizza?

USDA rules made it virtually impossible to build a small kill room for a butcher shop. And if you get caught selling raw milk to the public, it's a crime. I was raised on raw milk and never heard of anyone getting sick on it. And I know a dairyman that sells it on the black market to Hispanics who don't like pasturized milk products. He was making triple per gallon on it over the price he was paid by Carnation...and sold it cheaper than milk in the grocery store.

We eventually will have to turn to the S. American style where you have the legitimate marketplace and the black market where no one can borrow to expand but resort to the black market in order to survive.