When people are no longer in debt and have 7-8% savings. How long will this take for people to have no debts and have savings?
Unless you can refute me with facts, you're the presumed idiot. I know economics, you don't. Your thinking is based off ideology; an inherent desire to see the US economy fail.
Fact - your account is worth nothing. your economic knowledge is equivalent to that of a 2 year old. I'm not interested in the US' failure. I just want to be prepared if it does. You, on the other hand, are like a blind man, spouting off nonsense, wandering with your hands outstretched, trying reach for anything you can grab a hold of. Your picks and calls show exactly what type of 'turder' you are...a BAD one...easily the worst I have ever seen.
In 1995 The CDO market was less than 3 billion dollars. The DOW was in the 4000's range in 1995 The S&P in the 550's GE was trading at what it is today Homes were way way much more affordable in terms of price. Consumers had much less debt Our country was less in debt. In 2000 (5 years later) The CDO market was over 80 billion dollars Fact. In 1970 The wife could stay home, raise two kids husband goes to work and they can make ends meet and have 8% savings + live in a home + pay mortgage. Fact. In 2008 A young adult has to spend tens of thousands and miss 4 years of earnings to get a work permit called Bachelors Degree. Fact. We use H1B visas to push down the wages of White collar employees. Fact. We have little capacity to manufacture compared to 1970. We rely on other nations such as communist china to provide capacity. Fact 70% of our economy is based on taking on debt to consume goods made in china etc.. Fact. Consumers have to borrow to make up the difference in the cost of living. Fact. The securitization market is dead. It is one of the components that helped lead the bull rally from 83 onward. Fact The US is fucked. Our fundamentals are damaged and 4 years will not fix it, it will take 20 years to fix it and that is if we do it without FED tricks.
If you know economics why did you fail to see a +45% decline in the indexes? No desire to see the US economy fail here. Just a strong desire to see you fail. Guess I got my wish. Gotta go, thanks for your dough. P.S. Kingofshorts, great post.
Only to the point at which service on the debt starts to consume too much disposable income. To the extent that all of peoples' money is going to pay for past expenditures, they have no money for present expenditures and the economy dies. Debt moves consumption from the future to the present. In modest amounts, debt creates a virtuous cycle of consumption, investment, further production, and further demand. But the system is quite unstable in the debt-fueled consumption does not support the creation of long-term productivity and demand. Borrowing long-term money for short-term consumption is a recipe for disaster, as we are now seeing. Run the numbers to see how horrible unsustainable the past few years were.
Stock Turd3r, I don't get involved in stupid online bashing, but DAMN. You are stupid! You've even brought me out of the woodwork, that was not easy. "The market is surging" Clearly delusional. "Debt is good for the economy" Sure, until the music stops. When will you accept that it has stopped? Wilt