Debt, and a boatload of crooked deals on Wall Street, is what brought us to our current financial dilemma.
People have tapped out everything they can on credit cards, home-equity loans and everything else they can get. Some say American business is now at the edge of a similar debt cliff and may soon drop off.
If so, that would largely be a result of consumers who have borrowed to the max and can’t afford to buy anything else.
So, the businesses — auto manufacturers today, who-knows-who tomorrow — are lining up for government bailouts.
And the U.S. government: What’s their limit? My evaluation is, they’ve pretty much maxed out their “credit cards,” too. China and Japan have been Visa and MasterCard for the U.S. government for a long time.
What will the U.S. government do when its credit is cut off, when China and Japan either cannot or will not lend the U.S. government another nickel?
I believe we’re about to find out.
Steve Grant
Kansas City
Gee, I wish I was as smart of personal investing as you are, Nice Guy. Sounds like Groendyke sent you home for a few extra weeks since the price of oil dropped.
Posted by: Pub 17 | December 11, 2008 at 03:53 PM
I would rather have control over very modest gains versus mandated and proven historical negative ROI. Personal investments and capital are T.O.D. unlike the Social "security" Ponzi scheme.
Those that "feeel" and trust government makes better decisions than they do, fine, give them your money and be guaranteed poverty.
Posted by: NoMoreMrNiceGuy | December 11, 2008 at 01:53 PM
Is, if you think that anything else has a chance of going negative in the next year.
Posted by: Pub 17 | December 11, 2008 at 11:01 AM
A zero percent yeild! Sign me up, that is better than Social Security!
Government can raise taxes (steal) if we allow them to. You know what started the Revolutionary War? Who won that one?
Maybe it needs to happen again. We can not afford more taxation, we pay enough already.
I'll be executing my 2nd Amendment right against the CDF when they show up demanding money and a read out of my thermostat.
Posted by: NoMoreMrNiceGuy | December 11, 2008 at 09:50 AM
You beat me to the punch Marc. I might also add that the US Government can always generate revenues by raising taxes (for as politically and fiscally damaging as that option may be). For that reason, T-bills will always be pegged as the risk freee benchmark.
Posted by: Casady | December 11, 2008 at 09:26 AM
It's not the buying that concerns me, it's China saying, "Naughty, naughty" and dumping it all on the market if we cross them that's worrisome.
Posted by: Pub 17 | December 11, 2008 at 08:50 AM
"What will the U.S. government do when its credit is cut off, when China and Japan either cannot or will not lend the U.S. government another nickel? I believe we’re about to find out."
Highly doubtful, considering that people are flocking so quickly to treasury bills right now that their yield is 0%.
Posted by: Marctnts | December 11, 2008 at 07:30 AM