Yes, that is correct. And our current CIC has really made some outstanding and memorable choices during the past 6 years. Would you like the short like of the non-sensical and sometimes damaging appointments that Bush has made?

You are trying to blame the economists and although they often are a confused bunch they seldom have any real power per policy and the decisions of our goverenment. What it boils down to is that stupid people are probably going to make stupid appointments and decisions. We have seen the proof!;)

I think I allready said this on 11/26/07....Hmmmm maybe somebody out there is really reading what I write...


Join Date: Dec 2002
Location: Out there somewhere beyond the doors of perception
Posts: 12,034 We have lost control

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Super may just get his wish. everybody in the world will be equally POOR. The Subprime debacle and the ensuing loss of liquidity in the financial system may just bring the whole house down. The Fed can only push interest rates down so far and the $ can only go to zero. The ramifications are just off the Richter Scale. The perfect storm is brewing.

There simply is no investment vehicle that won't be effected. I suppose Gold and precious metals would be ones only salvation.

History may write that 911 was the catalyst that brought it all down. After 911 the Fed was forced to inject liquidity into the system to keep the cahs flowing and the wheels turning. Then the inevitable greed set in which caused the system to crash upon the reef of ill liquidity.

The situation is basically thus. The US is involved in a costly war which it is not using capital to fight, The US has hugh defceit spending which is driving the credit worthiness of the US down. In the face of that the Fed is pushing interest rates down to keep the credit system liquid because of the excesses in the sub prime loans and the collateralizing of that debt. As a result the $ is declineing in the face the of US reduced credit rating and lowering of US interest rates. Oil prices are higher because of an increase of tension and risk in the oil producing regions of the world.

The question is how large is the sub-prime loan situation and the further collateralizing of that debt in relation to the size of the world economy? How many other loan obligations will become ill liquid as collateral damage to the sub prime.

One can only push on a string only so far before it becomes ineffective and the system seizes up. If the system seizes up no more cash flow.

Can this happen, probably not, but the risk of a catastrophic failure of the system is greater now than at any time since the Great Depression of the 1930s. I would say roughly a 20% chanch. My range is 15% to 35%. what saved the US during 911 was the speed in which the US financial system was able to shut down and provide a cooling off period.