Quote:
Originally Posted by classicman
Don't get carried away there tw - What were the default rates and jobless percentages in '29? You know that this is not a realistic comparison...
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This is one analyst projection by associating percentages and chart characteristics to those in 1929. Neither I nor the analysts says it is correct. He is simply noting similar trends AND therefore a possible scenario. Meanwhile, when everyone was saying they had never seen anything this bad (in late October), well it has already gotten much worse then anybody thought even back then. Those who have predicted the worst are now accused of being too optimistic. Reasons why are discussed in another thread called "How the GAME is played."
If I read another prediction correctly, Obama is talking about the need for another $700billion TARP. And this is no longer for buying up bad assets. That Paulson strategy has even been abandon by Paulson.
Bottom line remains. We have invented massive assets that really never existed. Then enriched those who invented these fictions. Now those assets have vaporized leaving massive debt obligations. Who will provide that money? Well, the best American allies (ie Saudis) have put up some. But few will loan us money due to mythical America accounting standards. So, the government must issue corporate welfare in various forms, then the government can get foreigners to provide that cash.
Few other American financial institutions can be trusted anymore. You will see foreigners putting up circuit breakers to protect the world from American MBA games. Paulson is creating massive government debts, then gives that money to American companies with the biggest hands out.
Time to be fair was back when wacko extremists were saying, "Reagan proved that deficits don't matter." It was obvious back then only to a few how often George Jr was lying. Time to pay for not paying attention. Except it is worse than even the worst projections - and then last week got even worse again.
Worst part - there is no certainty. Even the most negative predictions have become too optimistic.