http://digg.com/business_finance/The...conomy_is_Over
Yeah, I'm linking to the Digg article instead of the Washington Post one. Fucking hell Digg is a bunch of Chicken Little idiots. I mean, listen to some of these posts.
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We are in dip shit now. Dollar is rising, Oil is falling, Gold is falling. It's called Deflation. Your 401k pension plan is in danger, as soon as Wall Street collapse to the ground your assets will cost nothing. Get out of Debt, sell all your Stocks, sell Gold. Cash will be in huge demand. Start saving now as Cash will be the King in the future days. Check my submissions on DEFLATION.
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Noooo! It's the end of the world! The United States is dooooooooomed!
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The real concern that I see is that this will continue spreading globally. As America becomes less of an attractive location to park money globally due to rising default rates on loans, (or even the perception of rising rates), investors from overseas will slow down their purchases of dollar denominated assets. Once that happens the dollar will slide even further against foreign currencies as demand for the dollar falls. That means several things, US exports are cheaper to buy overseas but also imported goods become more expensive, ie, inflation will rise. Perhaps more frightening is the risk that the US dollar will no longer be the international vehicle of trade for things such as oil due to it no longer being a good store of value. If that occurs then you are likely to see countries lowering their foreign reserves held in US dollars and that will push the dollar down even further.
IE We could be up S#$% Creek.
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Oh, right, the problem is
inflation not deflation! Noooo! The United States has a weak dollar currently. IT'S THE END OF THE FUCKING WORLD!!!
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What this shows is that most American's are not as rich as they show. Many of us have been living off cheap debt for too long, all thanks to Alan Greenspan's unwise easy money policies that helped make our savings rate the lowest ever. Now we are paying for our spending indiscretions.
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Yup, It's
Greenspan's fault people buy shit they can't afford. Fucking Greenspan! You caused the end of the fucking world!
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America ran out of credit just before the last Great Depression.
And that one was also caused by having Republicans, who used government as a gravy train for the Rich. Who sacrificed the public interests, to let what was called Lazes Faire economics (the pig was repainted as Reagomics and/or Libertarianism), reign.
Once this depression kicks in, it may be worse than the one FDR got us out of... because we don't know how to be thrifty like our grandparents, and because, China and other countries own key bits of our infrastructure... how can you really pay of Japan, if you build cars for Toyota, and drive through a tollbooth owned by China while the parts for that car came through a port and shipping magnate owned by Dubai?
And this is going to happen around the world ... everybody will end up owing Offshore banks -- which is where the real ownership of all these multinationals resides. I've been screaming about this since Bush got in office... who do you think he works for?
Now I don't think the real bottom will fall until September. So get ready.
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I think the following quote sums up everything quite nicely:
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Is the fucking sky falling again?
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Apparently. The stupidity, man. The absolute stupidity.
But, whatever. Let the Chicken Littles scare you away from ever investing. Just don't blame me when you turn 50 and are broke.
And by all means let them scare you into selling all your stock. It just means cheaper prices for me.
You want to hear a little secret? Did you know, if you were to have dumped all your savings into stocks at the height of the pre-depression stock market in 1929 and held them for the long term, in less than 30 years you would have been
very well rewarded?
And if you had kept buying, even after the market crashed? Well. That's how people get rich.
By all means there are stupid investments one should avoid. But the stupidest decision of all is avoiding the stock market entirely out of fear that the economy will collapse.
My friend--if the economy truly does collapse you have a shitload more important things to worry about than your money. Trust me.
Of course, if you honestly believe total economic collapse is a realistic possibility... Nah. Nobody could be
that stupid. Right? *Sigh*
(BTW, the first person to compare the US to the Romans will be fed to hungry lions).
