Now calling for $1T stimulus...

Discussion in 'Economics' started by Mvic, Dec 11, 2008.

  1. Mvic

    Mvic

  2. clacy

    clacy

    Do these assholes think that you can avoid all recessions by borrowing money?
     
  3. Yes.
     
  4. The problem is the trade deficit. If we send them our dollars and they don't buy anything we make, and won't LEND them back to us, either, our economy will crash because the numbers are so huge.

    Now that they are afraid to lend us more, we would need stimulus equal to the trade deficit, at least, just to keep things afloat.

    But how long can that go on for?
     
  5. achilles28

    achilles28

    This all gets very inflationary once that cash hits fractional reserve balance sheets.

    All that money lost in the Wallstreet Blackhole gets puked out and compounded once banks start lending again.

    Notice banks aren't taking losses anymore. CDS is getting paid out. CDS is getting paid to people who never owned that debt to begin with. 9 people for every 1 legitimate debt holder.

    Thanks to the US Treasury, all these specs are becoming infused with cash.

    Once banks lend again, deflation will soon end. Then we do Bubble 3.0

    Whats the next bubble?
     
  6. Next bubble is US treasury bonds/bills. Already gone parabolic.
     
  7. achilles28

    achilles28

    I agree.

    There's a couple threads around here already talking about how to exploit it.

    I think there's a few ETF's that track inverse US bonds.