> Cam wrote:
> Americans is one of the laziest.  Fat and happy on years of prosperity
> and less willing than ever to work hard and sacrifice for what they
> want in life.

While I 100% agree with your analysis, as DarkCloud, I disagree with
your assessment:

yes, is the correct answer.

At the highest levels there's roughly a $3 trillion gap between what
America makes and what it's spent.  So what has America spent all this
money on?

Discretionary crap.  Basically we've borrowed against our homes and,
rather than investing in them (value add), we've blown the dough.

So we've $3 trillion in debt that has no underlying asset, and now
that debt is coming to risk as those that hold it start to walk away.

(basically a home owner can buy a new cheaper home on their existing
credit and then default on their existing McMansion ARM.  That means
the lender eats the default.)

That's why Fannie is at risk.

That's what's creating higher and higher standards to get credit.

That's why spending is slowing down more and more.

Because spending is slowing, profits are falling, which slows spending.

Because profits are falling layoffs are happening.  That slows spending more.

There's your spiral.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~|
Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to 
date
Get the Free Trial
http://ad.doubleclick.net/clk;203748912;27390454;j

Archive: 
http://www.houseoffusion.com/groups/CF-Community/message.cfm/messageid:263957
Subscription: http://www.houseoffusion.com/groups/CF-Community/subscribe.cfm
Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5

Reply via email to