Image via WikipediaI guess you missed my blog about the stock market, so I'll recap. We have not hit bottom yet. The bottom will be in the 8000 point range. Do you not get that this is the beginning of an unprecedented depression? Every major bank in the world is in big trouble, because they bought bad investments. To quote National Public Radio, Iceland is facing the possibility of going bankrupt. The whole country, get it? This is a wildfire and no one can put it out. People all over the world are feeling this financial crisis. Banks will not lend, or can not lend.
Some banks borrowed so much that they have no money to lend. They are hoping that they get paid back, but as the world economy tanks that becomes less and less likely. those banks are going to go down. These are banks all around the world, so no one can see the bottom of this. Other banks are afraid to lend, because a lot of banks are going to go under and if they do, companies that are banking with them will lose their money. According to National Public Radio, big companies can't get short term loans to tide them over, when they are cash short.
The things that you are not being told are huge. First of all, Social Security is in critical condition and medicaid and medicare are nearly doa. They are using the defibrillator on them. The government has been diverting the money from them for years to pay for other things. There are iou's in the Social Security Trust Fund from the government. This is a huge problem, because millions of people mave medical coverage through Medicare and medicaid, so guess who's going to pay when the government can't. You are. People will be in the hospitals in overwhelming numbers and with no reimbursement hospitals will pass the cost on to you. Millions of people are on Social Security and they have no other income. They didn't make enough to have a 401k and many of the companies they worked for went bankrupt and stole their pensions. If the government can't pay for Social Security what do they do?
What the candidates aren't telling you and you don't want to hear is that the economy can't be fixed. I know you don't believe that, but you didn't hear answers during the debate, because there are no answers. I'll explain.
People have borrowed themselves into a corner. They are one pay check away from losing their cars their houses and pretty much everything else. The day is here when those paychecks go away. No one can buy. We all know this. You have all seen the handwriting on the wall and you know if you borrow any more your a dead duck. The economy has been running on borrowed money. Companies borrow and you borrow and that's how they were buying. The problem is that you can't borrow your maxed out and so you can't buy. Companies have no income, because you can't buy. This means that one company after another will lay off people. Lots of people. This is why the stock market is dropping like a rock. The insiders know that the economy has ground to a
halt. Stores are not ordering goods people. They are only ordering what they can sell and since your not borrowing to buy things, they are not ordering much. The first thing people stop buying are things they don't need. Gift shopping is optional now. You may have even made agreements with your friends family and coworkers to do less this year, or nothing. If you haven't you"re one of the few. Next people will start selling things. Have you noticed that you can't drive a mile without seeing a car for sale. Dealerships are closing, because people are going to keep their cars to the till they die in the road. Everyones selling their second car, so the market is saturated with cheap used cars. Travel is a luxury now. Even ebay is laying off. If you can't see the handwriting on the wall you have your eyes closed.
Obama and McCain danced all around this crisis tonight, because it is political suicide to tell you the truth. The truth is, everything has stopped. Foreigners can't buy. Money is gone. It was in the stock market and guess what, it evaporated. Everyone in this country has maxed out their credit and so have the companies. This equals depression folks. Soup Kitchens, homeless people, people trading items to get food and help from handy men. Didn't you get a hint of this when the pipes in people houses were being stolen for scrap metal?
Americans are in denial and they are listening to people who have a vested interest in telling you that this is just the same old thing happening over again. The market has dropped before and it goes back up eventually. People, what part of this is the worst it's ever been including The Great Depression, don't you get? I know that you have no clue what that was, but basically bread crust was a good meal in those days for about 70% of the people. The government made everyone turn in their dollars and issued new ones at a two for one rate. If your not afraid, you are living in fantasy land. It's not just time to be afraid, it's time to start figuring out what you can sell. I know my grammar sucks, but what i have said in my blog has consistently happened, or is abuot to happen.