Where We Are, Where We're Heading (2009)

Where We Are, Where We’re Heading (2009)](http://market-ticker.denninger.net/archives/689-Where-We-Are,-Where-Were-Heading-2009.html)

Quite a long read, well worth the time & effort… Hope he is wrong.

Glenn Beck has been warning his listeners for over a year. I thought he was nuts about 7 months ago, 6 months ago I started listening, reaserching, and reacting. Now it’s too late. Financially, we are doomed. Gonna be tough times for congresmen and President elect Obama. Don’t know what’s gonna happen, but hope it doesn’t get too viloent. I am prepaired either way.

I/ve been reading this guy for the last few months.

Like I kept saying in the lead up to the election

“we are so screwed no matter who wins.”

Let’s hope Obama and the democrats can fix this mess without long term damage.


The Mother of all financial problems maybe as soon as the next 7 years?


Economists from Standford and Harvard belief the Medicare crises is so large, that we won’t be able to tax our way out of it. The size, cost and scope of the Federal Government must be reduced or we can’t survive it.

Stop listening to these kind of predictions. No one can predict what will happen. It becomes a self-fulfilling prophecy. Someone predicts doom and people react in a way that creates the doom. Example. I am invested in the REIT’s that he predicts will collapse, if everyone who is invested in the REIT’s listens to him and pulls their investment out it WILL collapse. DON’T BELIEVE THE HYPE. If this guy was a home inspector, he would be the ultimate DEAL KILLER.

I wish it were that simple. The housing industry over the past 10 years has been operated like a giant Ponzi Scheme. The industry built and built and built new product to sell to buyers who were “Then, Currently and will be in the Future” unable to service the mortgage payments they were allowed to acquire.

We can certainly re-write and adjust all the loans in the country. This of course will have a less than desireable impact, being a continuing substantial drop is housing values. Remember, house’s are valuable because not everyone can own one. When the government starts giving houses away as it is currently, homes will be like VW’s, everybodys got one…

The predictions of Medicare and SS security failure are not WAGs but based on the math.

As to Derringer’s predictions, he got 2008 almost exactly right when most others lied to us.

It was all false wealth that people borrowed against like would would be ever increasing.

Speaking of Mr. Ponzi, that is exactly what S.S and Medicare have always has been using current workers taxed to pay for those who no longer work while our politicians kept assuring everyone that things were not as bad as some said.

…and if no one is working, there will be no taxes to collect, but the expenses will keep on growing. Ha…just wait til we have Nationalized Health Care…we ain’t seen nothing yet!

Correct, debt is a constant and assets rise & fall independent of their value.

Here is another great article from one of the posters at Market Ticker. If your goal is trying to understand some of the market forces in play today without the usual spin then spending some time a the Market Ticker will be enlightening & educational.

Uh Oh… Monetary Flat Spin](http://market-ticker.denninger.net/archives/703-Uh-Oh…-Monetary-Flat-Spin.html)