Tuesday, February 10, 2009
Something to Think About
With today's 400 point drop the Dow fell to 7,888 we are only 5 days from a complete collapse in the Pension System.
That's right. I estimate that the Pension System would collapse at roughly a Dow 6,000, which is only 5 days of 400 point declines from here.
Of course the Market won't decline 400 points each day for the next 5 days... how about 200 points per day for the next 10... or 100 points per day for the next month...
Of course, the Federal Reserve would simply print money, monetize all our debts and buy the S & P. Think about how that would go over for US$ holders and savers...
If you think a political crisis is out of the question you are really are not thinking this through:
With 5% unemployment the U.S. had 10% of its population receiving food assistance from the government. Now think 10%, 12%, even 15% unemployment. That would mean 25% to 35% of the population needing food assistance with a similar percentage being in default on the mortgage on the family home. Now think about the populations of East L.A., East St. Louis, East New York, Detroit, Oakland, Philadelphia... these cities are barely holding it together as it is... if you think things are ferkakta now, just you wait.
I know it is hard for folks living in Scarsdale (NY), or Greenwich (CT), or Boca Raton (FL) to actually conceive that there were millions of people that were BARELY getting by BEFORE the economy took a sh*t, but now these folks are not getting by at all.
Every political leader from President BHO on down is going to tell you "its going to take time"... and they are right, but not about what they are trying to convince you of. It is going to take time until the Oil shoe drops, and when it does it is a light's out issue - LITERALLY.
But at least South Carolina law man Leon Lott wants to lock up that dangerous pot smoker, Michael Phelps... spending tens, and perhaps hundreds of thousands of $$$ to prosecute Phelps.
So we got that going for us...
Mentatt (at) yahoo (d0t) com
Posted by The Short Story Man at 5:27 PM