Friday, November 16, 2007

On the economy

I've never claimed to be a financial wizard. I haven't done poorly, but Warren Buffet or Bill Gates I'm not. With that in mind I give my take on the current economy. There's an underlying factor in the back of my mind that never seems to come out to the forefront of the financial news. Not to sound goulish but the financial health of this nation is like Terry Schivo. It's dead only it hasn't accepted the fact. With a national debt greater than all of the budgets under all of the presidents combined, America is on a course for one of the greatest economic depressions ever seen in modern times. We as a nation are beyond bankrupt and it doesn't take a genious to figure that a depression is soon to come. I truely wish I was wrong, but we've seen events leading up to this over the course of history. Massive debt, hyperinflation, and financial insturments based on promises or non existent values were precursors to hard economic times. I'm seeing the carnival atmosphere on wall street with pundits touting how great our economy (patient) is doing, but did sombody forget that the doctor has declared the patient dead or maybe they don't want to admit the obvious? It's said that the band played on the deck of the Titantic as it was sinking.
Looking at the financial markets is almost humerous if it weren't so tragic. We see money pulled from stocks put in gold one day only to see it move to bonds and treasuries the next. The problem is will be no real value in any of these in the coming months or years ahead. The losses are already there only hidden in a delayed reports that will eventually see the light of day. We're just beginning to see the sub primes, naked shorts, ODC's, and Level 3's and the effect they have on our economic health. I only wish I were the boy who screamed wolf, but what is going on in the background in the financial and political world is not good. It's like giving a teenager a credit card with no spending limit and denying the bill when it comes. Well our bill is coming.

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