Thursday, October 09, 2008

So What's Next?

Like most everyone else, I have spent the last few days reading about the economic crisis. I've heard what Paulson and Bernanke say we should expect. I don't pay them much attention since they are the ones that were assuring us a few weeks ago that everything was OK.

After looking the whole thing over, I think I have a pretty good idea what we can expect. Heres the Reader's Digest version:


The government has promised to make good on what will eventually amount to trillions (as in more than one) of dollars worth of debt. Added to that is the 50 trillion plus dollars of unfunded medicare and social security for the boomers. Where is the money gonna come from? Certainly not from taxes, the American people don't have it, if they did, they would be paying those ridiculous mortgage payments and there wouldn't be an immediate crisis in the first place. What does that leave? Print more money. With more money comes price inflation. When the prices start through the roof, people are going to start crying and the government will step in with price controls. Price controls will lead to shortages and a black market.


Like I said before, I got these ideas from reading. They are not my ideas, just a compilation of the stuff that a lot of smart people are saying. You may believe as I do or you may think it is silly. Still in wouldn't hurt to have an extra case of toliet paper stuck back in the closet and that 5 gallon can you use for lawn mower gas full in the garage. Just in case.

Sunday, October 05, 2008

The Knack



If the embedded video does not work watch the first couple of minutes of this one, it is the same thing.

Thursday, October 02, 2008

The Real Great Depression

This article says that the Panic of 1873 is probably the best model for understanding our current recession.