My Response to Gloom and Doom

The government surplus/deficit of Portugal, It...

Image via Wikipedia

Stocks are in a bear market; the global economy is teetering; Europe is imploding; the global banking system is dysfunctional; most sovereign debt no longer is ‘risk free’; nations have spent trillions trying to prevent the collapse of socialism and crony capitalism; central banks have monetized trillions trying to paper over collapsing living standards, unaffordable government spending and zombie banks.

So pray tell, what will possibly spark an economic rebound? Lower rates? Government deficit spending? Consumers taking on more debt? Trillions have been spent on a miserable economic dead cat bounce.

The only solution is a massive purge and then the restructuring of government, banks and consumer balance sheets and spending habits.

via The King Report: Parsing the Fed | The Big Picture.

Much gloom and doom. Nobody likes it, but the situation is actually simple. A few years ago, most everyone went wildly into debt. Taking on debt means that you make sacrifices in the future to pay for the present. Well, the future is here and nobody likes it. But be of good cheer – nothing lasts forever. Sooner or later, debts get paid off or cancelled. It’s just a matter of plodding ahead while time passes. It may be ugly, but it would be a little less ugly if everyone would quit their moaning and groaning.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: