{"id":175,"date":"2008-10-16T14:43:47","date_gmt":"2008-10-16T21:43:47","guid":{"rendered":"http:\/\/www.crookedbough.com\/?p=175"},"modified":"2008-11-05T13:15:37","modified_gmt":"2008-11-05T20:15:37","slug":"the-great-fall","status":"publish","type":"post","link":"https:\/\/www.crookedbough.com\/?p=175","title":{"rendered":"The Great Fall"},"content":{"rendered":"
…can humpty dumpty be put back together again…<\/div>\n
\u00a0<\/div>\n
I’m certainly not an economics expert but from what I can glean the economic crash we are seeing right now is primarily due to an inordinate amount of public debt,\u00a0driven by banks issuing\/consumers taking\u00a0mortgages\/loans\u00a0that were secured by\u00a0bogus\u00a0insurance issued by Corporations that\u00a0“we the people” are bailing-out.\u00a0\u00a0The\u00a0effect is, banks and insurance companies who hold the mortgages,\u00a0can’t borrow money and those who have money to loan won’t let it go because\u00a0there is\u00a0too much unsecured debt in the system (insolvency).\u00a0\u00a0<\/div>\n

<\/p>\n

<\/div>\n
As more and more\u00a0people are unable to pay there mortgages, they\u00a0flood\u00a0the banks and it just\u00a0makes the\u00a0problem worse.\u00a0\u00a0The value of the\u00a0homes are worth less and less because there is an excess of homes on the market (exacerbates the problem of solvency).\u00a0\u00a0\u00a0 Leaving more people insolvent because their equity is lost to the market glut and\u00a0what they\u00a0owe on their home\u00a0is greater than the value of their home on the market.\u00a0\u00a0\u00a0<\/div>\n
Additionally the consumers are holding a huge amount of debt in credit cards and auto loans which will inevitably fallout in a similar fashion (local failures).\u00a0\u00a0The market of the past decades had growth based on unsustainable debt.\u00a0\u00a0\u00a0Now that the debt has\u00a0come due and loans have stopped, the markets can no longer be sustained (debit crisis not credit crisis).\u00a0\u00a0 Since there is some much bad debt out there, anyone who has secure money to lend won’t\u00a0\u00a0because of all the\u00a0risk in the market.\u00a0\u00a0\u00a0 So far the bail-out from “we the people” has done nothing to solve the crisis.\u00a0<\/div>\n
\u00a0<\/div>\n
This situation puts a temporary surplus of goods on the market at low prices (especially commodities, see oil fall)\u00a0but shortly the surplus will dry up because no one will loan money to produce more goods because no one can pay their debt.\u00a0 This\u00a0sets a\u00a0\u00a0“spiraling crashing thing” in motion which consequently leaves more people vulnerable, because they have lost\u00a0their jobs and can’t pay their debt\u00a0due to\u00a0of a lack of production.\u00a0\u00a0Prodction has stopped\u00a0due\u00a0to a\u00a0lack of consumption\u00a0because no one can afford to carry any more debt (kind of circular I know; i.e.\u00a0– the “spiraling thing”).\u00a0\u00a0<\/div>\n
\u00a0<\/div>\n
Some say it\u00a0took decades to build all this debt based economy\u00a0it will takes years to recover.\u00a0\u00a0\u00a0I think this is not\u00a0a matter of recovery but rather it will be a transformation of Capitalism.\u00a0 What that looks like won’t be clear until we clear some of the train wreck from the tracks.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/div>\n
\u00a0<\/div>\n
basically the system is fucked….\u00a0\u00a0…so it seems if humpty dumpty can be put back together again,\u00a0he will probably look like scrambled eggs and will never be able to sit on a\u00a0wall anymore…<\/div>\n
Tweet<\/a><\/div>","protected":false},"excerpt":{"rendered":"

…can humpty dumpty be put back together again… \u00a0 I’m certainly not an economics expert but from what I can glean the economic crash we are seeing right now is primarily due to an inordinate amount of public debt,\u00a0driven by banks issuing\/consumers taking\u00a0mortgages\/loans\u00a0that were secured by\u00a0bogus\u00a0insurance issued by Corporations that\u00a0“we the people” are bailing-out.\u00a0\u00a0The\u00a0effect is, more \u00bb<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[11],"tags":[216,213,172,212,218,217,211,215,214,210,219],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.crookedbough.com\/index.php?rest_route=\/wp\/v2\/posts\/175"}],"collection":[{"href":"https:\/\/www.crookedbough.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.crookedbough.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.crookedbough.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.crookedbough.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=175"}],"version-history":[{"count":9,"href":"https:\/\/www.crookedbough.com\/index.php?rest_route=\/wp\/v2\/posts\/175\/revisions"}],"predecessor-version":[{"id":194,"href":"https:\/\/www.crookedbough.com\/index.php?rest_route=\/wp\/v2\/posts\/175\/revisions\/194"}],"wp:attachment":[{"href":"https:\/\/www.crookedbough.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.crookedbough.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.crookedbough.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}