Gee Wally; though I am hesitant to say I told you so, I did. As the Dow races to 7000 my prophetic, prescient, almost clairvoyant predictions of an economic apocalypse are tragically coming to fruition. Yet, it will get much, much worse; trust me. The vaunted $700 billion, “shuck and jive” has been as effective in loosening credit markets as Al Gore has been at losing weight. He’s still a fat bastard and our financial markets are circling the bowl. Here’s what you need to know.
It’s too late to prop up our financial markets. The fire started by Democrat holdovers, flunkies and thieves in Fannie Mae and Freddie Mac has spread from our financials to industrials and even to internet advertising; ala Google’s dive today. Also note Yahoo is almost free and CBS is on life support at $5.00 a share. My point; every sector of our economy is in full nose dive.
Just for kicks, let’s quickly stroll down memory lane and examine the cause of this winter of our discontent. Democrat hacks at Fannie and Freddie used sex, lies and videotape to cook the books, receive millions in target bonus’s and got congress to look the other way by bribing Democrats in the senate, “when republicans were in charge” and by bribing a lot of Democrats when they were in charge. Who said public service doesn’t pay? As republicans and President Bush were ringing the bell and shouting fire, democrats and the media minimized the alarm while shouting, “Racists pigs”.
Fannie and Freddie currently hold $6 trillion dollars in toxic mortgages but, that doesn’t tell the whole story. Through the halls of these evil twins passed $50 trillion dollars in toxic mortgages. These mortgages were explicitly given to unqualified buyers, bundled together in hundreds of billions of dollar packages and securities were sold around the world with the collateral being these toxic, worthless mortgages. All the while, Democrats fiddled, as the world burned. As these mortgages defaulted, the securities backed by them became worthless. Companies holding these securities, overnight had seen their balance sheets lose trillions. The financial markets went into freefall. As the tsunami swept through the financials credit markets froze. Industries hadn’t the ability to short term borrow. Major stock indexes tanked; oil futures spiraled and even deflation of macro commodities ensued. It turned out to be an excrement sandwich. And, it’s only begun. It will get biblical; trust me, I have predicted this all.
As expected, Democrats will bail out the car companies, insuring that they will indeed fail. This will spike unemployment into double digits and continue the domino sequential falling of economic indicators. While deflation will headline on the world stage, briefly, our most merciful government, under the messiah, “Barry O” massive capital infusions into the economy will rush, “fresh of the printing presses” into the economy, causing inflation percentages of 1000 percent; minimum. Prime Fed rates will approach 25% in an effort to curb inflation. The housing market will be destroyed, along with the seven or eight hundred businesses’s relying on it.
A world wide depression will ensue. Yet, it will be a gradual decline; much like easing into a too hot bathtub. At the height of the second great depression America will have a 70% unemployment rate. Most workers, “still employed” will be employed by the government. There will be a 30% homeless rate and the end of western civilization will be at hand. In the first great depression America was much more rural, more self sufficient. Today we are more urban, more dependent on government, more hapless. We’ve lost that rugged individualism that our founders embodied and this nation was born with. We are spoiled, rich and sassy; unable to hunt, to fish, to grow our own food.
Still, pause and reflect if you will, for in every calamity there is a teachable moment. Perhaps, just perhaps, as the phoenix rises from the ashes, whenever that future time is, it will be ingrained into the American psyche and told around the campfires dotted across these fruited plains. Liberalism is not tenable, it never was.
Conservative Springfield 20 NOV 08
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