Comments on: Historic Collapse of Consumer Credit

By: BruiserND

BruiserND — Tue, 10 Nov 2009 20:46:02 +0000

Facts;
65% of all American jobs are the results of small buisness and entrepreneurs.

Small buisness access to credit has beeb completly choked of as Banksters are encouraged by the Fed to play the stockmarket instead with the TARP & “stimulus” money extorted from congresss.

No one without “proof of income” can get mortgage credit thus precluding all small buisness owners from ever getting a home thus creating a massive disincentive to take entrepreneurial risk.

Opinion;

The Bankster Oligarchy and the government that they have captured have declared a Jihad on small buisness, capital formation and 65% of Americas workers.

By: Bigfathenri

Bigfathenri — Tue, 10 Nov 2009 19:17:10 +0000

I’m no supporter of big Keynesian interventions, but it has occured to me that one aspect of credit contraction involves clearing private consumer balance sheets. Leaving out the matter of deadbeat banks, as the government spends for the consumer, the economy can hover for a while as consumers repair their debt positions.

Interested in hearing from someone with hard data and analysis of this facet of our current credit environment. Is the magnitude of consumer debt clearing material or sustainable? On balance, is the economy better off bottoming with shredded banks and healthy consumer debt levels or the other way around?

By: egurr

egurr — Mon, 09 Nov 2009 23:10:49 +0000

I wrote a blog just a few days ago suggesting we refer to this economic crisis not as another Great Depression, or recession but “The Great Collapse”

http://www.u4prez.com//Blogs/ericgurr/The-Great-Collapse.html

By: BruiserND

BruiserND — Sun, 08 Nov 2009 16:49:28 +0000

Or that the banking system knows that credit default swaps were the first shoe to fall and interest rate swaps are next.

“If you want an Armageddon scenario, look no further than this. The cataclysm scenario that nobody is contemplated, simply because it is simply so improbable (where have we seen this before?), is what would happen when there is a black swan event at the core of the fiat monetary system: be it a failed US auction, or a parabolic move in the price of gold. At that point, watch for $1.2 quadrillion in interest rate bets to politely (or not) line up in front of the single file exit door of the burning theater. This begs the question: who has “sold” this incomprehensible amount of IR protection, and has bet the ranch, city, country, and basically all of capitalism, that a black swan in the IR arena will never happen? If you want to find your next AIG, find the answer to this question. Which is why, if one is dead set on banning CDS, one should also ban IR swaps, and virtually all derivative products, as all these asset classes reinforce one another. But the problem is that all derivatives do, when one gets down to it, is provide a monetary equivalent for the global lack of assets, as the globalized economy has gotten far too big for its own good. Fiat banking hard at work.”

http://www.zerohedge.com/article/reading-between-lines-david-einhorns-attack-cds

“There will be a reckoning”

By: MK

MK — Sun, 08 Nov 2009 16:44:11 +0000

My feeling is that the banks have orders not to loan money until February or March as the election cycle heats up. By the time November 2010 comes, credit will be more available and the impression that economy is healed will be in effect. ~And more democrats will be re-elected.

By: BruiserND

BruiserND — Sat, 07 Nov 2009 23:27:08 +0000

“because investment banks, speculators like Goldman Sachs, applied for and were granted status as a commercial bank (to gain access to taxpayer money).”

Correction; should be “bank holding companies”