The Epic American Credit and Bond Bubble Laboratory Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: John Vosilla who wrote (47633)	12/18/2005 1:40:09 PM
From: UncleBigs	Read Replies (1) of 110194

It sure wasn't that way across the board in the 1970's. Yes major blowups and collapses. NYC was broke by 1975 and at that point was the buy of the last 50 years. Stock market averages had major swings in both directions and ended flat. Other assets did incredibly well the whole time from gold, land, Florida condos and everything oil patch related including local real estate especially metro Houston. Today I would say we are in a rolling stagflationary depression. This isn't the 70's. This is 1929. Here are a few charts that graphically explain the difference between the 70's and now. idorfman.com Consumer spending has nowhere to go but down. idorfman.com Savings rate of 12% in 1975 is now negative. Savings have nowhere to go but higher. idorfman.com Housing and consumption binge has nowhere to go but down. idorfman.com Gutting the manufacturing base while piling on astronomical debts will prove to be a disaster. idorfman.com A popped housing bubble will break the final leg off the consumer spending stool and lead to massive unemployment and a huge retrenchment in risk taking. idorfman.com Going from huge net creditor to the world's largest net debtor is a monumental voluntary gutting of our national wealth all for instant gratification of consumptive goods. idorfman.com We had buying power in 1975. We're spent out now. As you can see, there is no comparison between 1975 and now. We've climbed the mountain of incurring debts for houses and fancy cars while gutting our productive capacity to repay the debts. It's now time to come down the other side of the mountain. That means higher savings, reduced consumption, massive unemployment and an intolerable debt burden. That's not stagflation. That's deflationary debt collapse.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next