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Prices will correct significantly to
the downside to achieve congruency unless
some new impetus for mass borrowing by
consumers emerges…which ain’t happening.

Consumers are maxed out with debt and
the assets they used for collateral for
creating more debt are declining in value.

Show’s over folks.
Paying for McDonalds drive-thru
with a credit card should have made
it obvious we were near the end
of a huge consumer debt bubble.

All the talk so far has been about the
banks..a mere pittance of the problem.
Bailing out the consumer will cost
orders of magnitude more than the banks.

Its like the crew of the Titanic worrying
about a busted pipe that is gushing water
instead of the gaping hole in the side of the hull.

Either way, we’re going down and so far, the
government is only thinking about life boats
for the ‘upper class’ (read, banks).
The rest of us poor schlups in steerage
are gonna get soaked.

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Technorati Tags: Assets, Banks, Collateral, Consumer Debt, Consumers, Credit Card, Debt Bubble, Downside, Drive Thru, Gaping Hole, Impetus, Life Boats, Mcdonalds, Orders Of Magnitude, People, Pittance, Wages