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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (58271)	4/15/2006 10:45:24 AM
From: UncleBigs	Respond to of 110194

If people start to save instead of borrow and spend, there goes at least 10% right off the top of our gdp. It won't stop there because all of the people who lose their jobs stop spending. Then fear sets in and the contraction continues. There is no benign adjustment process given where we are today. The sooner we take the medicine the sooner we can rebuild a strong sustainable economy. The refusal of our government officials to take the medicine is what has caused the situation we are in. The imbalances have gotten so great that a depression is virtually guaranteed. There is no benign ending to this. It's like a cocaine addicted alcoholic who has been on a 2 week bender. There is a price to pay for that level of excess. It's called a crash. More cocaine and alcohol won't cure the problem.