Been awhile since I posted. We have stared at the abyss of financial Armageddon, the govt has taken over GM and Chrysler (don't you lose this game of duck duck goose once tapped twice??) and pushed purchases of MBS and Treasuries (monetizing debt) in order to lower rates to get home purchases back up. The definition of insanity is doing the same thing over again but expecting a different result. The Feds (Fed, Treasury etc.) are in a box. They are hoping to God for more runway, a home run ball or a Hail Mary but this author doubts the outcome. It is natural of course for them to act this way, in their own self interest and with the undeniable hope that fills the human (and especially corporate executive and politico) heart but the math is hard to dispute. It is time to pay the piper and Schwartzies will not do.
Here is my predicted outcomes:
Taxes up for everyone - don't believe the "just the Rich" hype
Lifestyles down - time to save boys and girls
Y ou WILL start caring about the USD exchange rate
Debt is bad, equity good unless you are an investor
Energy costs double - carbon tax, Chindia, you name it
Oh and with National Health Care expect Cokes, McDonalds, Oreos to get a lot more expensive