Tuesday, March 16, 2010

The Day of Reckoning Has Come

Real economists Marc Faber and Mike Shedlock dish out the bad news. Our economy has gone from needing one income per household to get by, to two incomes to get by. Now we need two incomes plus a shitload of debt. Given that we can't pay back the debt, we are looking at a serious collapse. Faber and Shedlock also tell us to try not to laugh when we hear the D.C. Pols talk about a "recovery."

This is the Neo-America that was handed to us. We were Debt Children before we were even born. All of the great ideas of prior generations ensured our indebted status - from the Federal Reserve (1913) to the New Deal (1933-Present), to the Great Society, to the hundreds of military interventions, to the Education Industrial Complex... I could go on and on.

And that's not even mentioning the current regime of corporate socialism that calls for bailouts of failed companies. How can this be called capitalism? How can this country claim that it possesses "free markets" anymore? Someone please give me an answer.

All is not lost, though. We will just have to widen our scope. There are always opportunities out there. Some will still be in the US, others will be in other parts of the world. It is a shame, however, that the current political establishment (including all mainstream Republicans and Democrats), are driving 300,000,000 Americans off a cliff in a car sponsored by Capital One, American Express, Fannie, Freddie and Sallie. Goldman Suchs is in the passenger seat, navigating. It didn't have to happen this way.


  1. Politically, I think we'd agree on a lot of things. Those events were bad for America. The focus of my blog will primarily be on the education industrial complex. In a true free market, if you can't pay for something, you don't buy it. But the government is creating false demand by making education so readily available. I'd rather struggle to try to pay the school's tuition in cash than what I have now with this student debt. And the payout is rarely worth it.

  2. True, JDU. I was of the same mindset before I went to law school. But influences, all of them from friends/family of another generation, convinced me that debt was the right way to go.

    Things have changed. The bubbles created by student loans were only filling up with air when they were our age. Now the bubbles are bursting. The loans were not worth it. They are bad for us, and they are bad for the country.

    I'll actually post soon about the law school "return on investment". It's pretty eye-opening.

  3. Love to check it out. Funny how the establishment characterizes student loans as "good debt." I see nothing good in it.

  4. I would like to have your email address. Please contact either Hardknocks, Angel, or Nando to get in touch with me.