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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Larry S. who wrote (16109)	1/6/2009 5:05:55 PM
From: benwood	2 Recommendations Respond to of 71456

As always, it's basic human nature, in this case, greed. When it becomes widely understood that gaming for the short term increases near term profits and greatly magnifies bonuses and CEO-level pay, then a positive feedback loop has been established which ends badly. Executives and/or companies that don't play get fired or eaten. For the past 20 years, various schemes have been devised to support this trend, which is exponential. Here's a few off the top of my head: Buy now, pay nothing for 60 days. Then 90, 120, 180, 266, 18 months, 3 years. Stacked auto loans (residual from last trade-in/payoff stacked on top of new auto loan). 0% auto loans Vendor financing (helped the tech bubble) Borrowing your down payment (80/20 loans) 103% LTV mortgages Liar loans Banks turning debt into assets. They later fell on their assets. Ratings agency duplicity Treasury duplicity World bank duplicity Federal Reserve obfuscation and duplicity On and on the list goes. The exponential nature of the loop required that the amounts grow extremely rapidly in the past few years. There is zero chance this bubble will be resurrected, except by devaluing the dollar 50% this year; 75% by next year or the year after, etc.