Fed Money Printing pleases Guttenberg, but wasted efforts
the money is now easily classified as MALINVESTED TO EXTREME
where is it going?
to purchase inflated real estate properties
with near 100% financing
with requested appraisal values
with cashback to buyer to cover closing costs
with phoney second mortgages to cover downpayments
thus transferring the 1999-2000 stock insanity game toward safer hard assets
to finance cashout refinances
which enable continued spending over standard of living means
and continued mere living expenses
and substituted unemployment insurance
the nation's real estate piggy bank is overvalued, abused, and being raped even as it is being hyped in value
WHATEVER CNBC QUESTIONS AS A BUBBLE IS A MAGNIFICENT BUBBLE
meanwhile in Detroit, cars are being sold with zero financing
that is not exacerbating the malinvested money supply rise
but it is threatening to make the entire car mfg sector a socialized arm of the govt soon
with huge debts, huger pension liabilities, highcost capital equipmt turnover, and tough labor contracts, this automobile sector is ripe for nationalization
that or bankruptcy of Ford for starters
since they have $23B in debt for every $1B in mktcap
just how will they continue to service that whopping debt?
no, the Fed Money Printing is just allowing a national economic water treading exercise
when the music stopps, all floating entities sink
this is Austrian School to the hilt
acceleration of money supply in order to maintain constancy
we are now in Weimar America, my man
I preach to the choir, I realize
the next voting machine in repudiation will be S&P, USDollar
/ jim |
