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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: skinowski who wrote (521514)	11/9/2012 11:20:10 PM
From: quehubo	Read Replies (1) \| Respond to of 793914

I have said the same thing at work numerous times. More or less over night once the music is over, you wont have any advance warning/ Our world will be much different. Inflation, devaluation of dollar, chaos? Okay I forget all we have to do is return to the Clinton tax rates and all will be well.

To: skinowski who wrote (521514)	11/9/2012 11:21:00 PM
From: LindyBill	Read Replies (1) \| Respond to of 793914

Sooner or later something will snap, and we'll have panics and other problems If the Fed is going to play this game, I would rather they not pay off they banks by giving them money to lend us at 3%. The "sooner or later" is what I am proposing as something no one can predict. I don't see it putting us under in the next four years, how long after that, I, and nobody else, has a clue.

To: skinowski who wrote (521514)	11/10/2012 8:44:05 AM
From: MulhollandDrive	Read Replies (1) \| Respond to of 793914

re: To my knowledge, our capacity to borrow and to hide (or "park") debt within our huge banking system is unprecedented. But numbers are numbers. Forever it will not last. The nation survives on borrowed transfer payments. The recipients spend the funds, and those dollars show up in corporate accounts and with a variety of other holders. They remain in the system. Even with artificially low rates, the interest payments on debt are already astronomical. great post.... i totally get bill's point as well... while i come down on your side of this, understanding that the real 'minsky moment' will come, i have been truly amazed at how the fed has been able to almost literally 'paper over' the monumental and unsustainable debt by money printing and the stock market cheers....i know way too many bears who have had their accounts blown up using fundamental and even technical analysis and placing their bets only to have the market move against them as the bernanke continues his QE ploys... the assumption is that at some point his treasury purchases must be unwound and toxic assets which were taken as 'collateral' from insolvent banks will need to be eventually moved off the incredible expanding fed balance sheet.... now i'm not so sure, like bill says 'nobody knows'....i often wonder if the fed 'exit strategy' doesn't exist, the 'exit strategy' will be to 'hide the sausage' indefinitely (?) and hope that the next generation just assumes that this is just the norm.... and i completely agree with you that if, when it snaps, it will be the mother of minsky moments and yep, our 'leaders' will say no one could see it coming, the other scenario is we get the next world war, and our very own hitler, gee wonder who that could be?