Something drove the market up so quickly before this recent “double dip”. Was it optimism? The lagging indicator “jobs” was coming back, so maybe traders were getting in out of fear they may miss the boat completely? Now that the unemployment rate seems to be stabilizing at 9.5%, do traders see this as a sign things are going to get worse?

Jobs are bad, this is true. But companies have tightened their belts and most are here to stay. What’s your opinion about buying more stock now in big companies that are sure to survive any downturn?

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With the national debt now topping $12 trillion, the White House estimates that the government’s tab for servicing the debt will exceed $700 billion a year in 2019, up from $202 billion this year, even if annual budget deficits shrink drastically. Other forecasters say the figure could be much higher.

In concrete terms, an additional $500 billion a year in interest expense would total more than the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan.

The potential for rapidly escalating interest payouts is just one of the wrenching challenges facing the United States after decades of living beyond its means.

So far, the F.D.I.C. has seized and sold 124 banks in 2009, and analysts expect hundreds more to collapse in the months ahead. That has put significant pressure on the F.D.I.C. fund, which posted a negative balance for the first time since 1992 when regulators cleaned up the carnage from hundreds of failed thrifts and other commercial lenders during the Savings-and-Loan crisis.

Officials of the F.D.I.C. said in October that 8,100 lenders remain in fragile condition!!!

Funny, I thought it was to keep insolvent institutions alive. If the REAL economy is dying, then liquidity should be going to areas that create REAL growth. Debt/credit markets are not generators of real growth and that’s why any efforts to create growth in credit end up stealing from the growth of our economy.

I can’t think of any other time when market sentiment meant so little to the future direction of equities. The Fed and Treasury are in ultimate control of if/when the bottom falls out on equities… unless deflation destroys them first.

Repeating that 1,400% debt growth would put the debt at $168 trillion by 2039. Please provide data showing that debt growth is unsustainable.

Regarding federal debt being “in the hands of our trading partners,” please recognize the federal government does not even need to borrow. It borrows so by creating T-securities out of thin air, then selling them. It just as easily and prudently could create money out of thin air, dispense with T-securities, and eliminate debt, along with interest payments and worries about our trading partners.

That being the case, specifically what are the “chickens coming home to roost”?

The notion that the federal government must borrow U.S. money it already has created, and uniquely has the power to create, is a relic of the gold standard, and currently illogical and unnecessary.

Rodger Malcolm Mitchell
http://rodgermmitchell.wordpress.com

Gee, it turns out that freedom, peace and prosperity are pretty popular after all — once people realize they’re in real danger of losing them. Turns out Ron Paul is not so “kooky” after all and it’s getting harder to paint him as such… (then again, I never thought he was)

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