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

To: Hawkmoon who wrote (104784)	9/3/2009 2:51:33 AM
From: Elroy Jetson	4 Recommendations Read Replies (1) \| Respond to of 110194

I get the fact that you believe debt is a magic charm which generates wealth -- and if only the government provides enough "productive" make-work jobs we'll be able to keep the debt bubble foaming away. I strongly suspect you'll acquire a whole new system of values in the coming years. You'll look back and wonder how you could have ever come to believe the things you do. Yes, many people have IRAs and other investments but only a small minority of people who have these type of investments are wealthy. Most won't have anywhere near enough saved to meet their normal daily expenses in retirement. That's poverty. Poor people with a few inadequate investments. While many Americans live in nice bank-owned homes and look prosperous, most could not put their hands on even $1,800 without borrowing it. Like a couple I know who live in their own bank-owned home in Beverly Hills worth far less than their mortgage, two leased luxury cars and no savings to their name. They own their furniture and their clothes. They dress and act as if they were wealthy. How will they send their child to college? God only knows. They're one check away from having absolutely nothing. When the wife got a torn sidewall in one tire of her leased Jaguar she did not have the $400 to pay for it, not enough available credit on their credit cards, not enough money in the bank. It took them four days to come up with the money needed to replace the tire. Is that the sort of "wealth" that you see all around you? Yes, every study of wealth shows it has never been more concentrated in fewer hands than anytime since the last Great Depression. Economic depressions always fix that problem. Capitalism runs on capital which doesn't exist without savings. No normal economy "need(s) a combination of mild inflation to motivate people to buy now rather than waiting for future discounts." Absolute rubbish you believe. Yes, many investors are putting their money in safe investments currently rather than see it burn in a furnace. It's their money, what's it to you? So you think they should put their savings into your mouth for safe keeping. Not going to happen. Borrow your money some place else. So you think "we can't just wipe all the RE debt off the books, well just watch. Economic depressions don't wipe all real estate debt off the books, just a goodly portion of it. In retrospect, likely the portion of loans that should never have been made in the first place. It will be an interesting experience. .