| ||TODAY'S MARKET CRASH|
Brings the DOW to the lowest level of the year. This, despite a massive government sending of cash to individuals (that's all gone), The Federal Reserve lowering the prime to 2%, and the rescue of Bear Stearns. There's nothing else it can do.
What's next, lower interest rates to 1%? That would crank inflation. They absolutely CANNOT lower interest rates at this point because inflation is raging. RAGING! This will absolutely hammer the middle class.
People like most of you out there - food prices are going to skyrocket. Fuel prices are going to skyrocket (it just passed $140/barrel for the first time ever - we used to joke that oil would be $100 someday - it's poised at this rate to hit $200 before too long!)
How will your life change when fuel hits $9 a gallon? The banks are plummeting. And what REALLY worries me is that the credit cards are now being sold in commercialized funds - just like what collapsed housing. Holy smokes when those CDO's crash (AND THEY WILL) then the very VERY last bastion of survival in the consumption-hungry USA - the credit card - will disappear like home loans.
Can you imagine what your life would be like if your credit cards were taken away? With fuel at $9/$10 per gallon...? What will happen to General Motors? Then the jobs that go with that? With those people out of work, do they go on welfare? Where do they get support with an army spending huge amounts in Iraq? The USA has spent OVER $550 BILLION DOLLARS IN IRAQ! Great investment! Lots of progress going on over there in a war that's lasted longer than our involvement in World War II - and there is no end in sight.
Inflation will increase unemployment, spending will slow dramatically, which will increase joblessness, which will increase pressure on the government's social programs. The U.S. is completely broke (massive deficits, plummeting dollar). Every time I exchange my U.S. Traveler's checks for EUROS here, and see how little I get - it just shows how bad things are in the U.S. and it is only beginning. There is absolutely nothing that I can see that is holding up the economy - except for no realization that there is no basis for values.
What options are left for keeping the economy from crashing? I can't see any. Any ideas?
| ||Posted 6/26/2008 11:41 AM - 3783 Views - 44 eProps - 45 comments|
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