tag:blogger.com,1999:blog-6244999628674918029.post4923107377409208367..comments2024-03-29T09:53:45.879-05:00Comments on Bayou Renaissance Man: Is this the trigger for the next economic crisis?Peterhttp://www.blogger.com/profile/10595089829300831372noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-6244999628674918029.post-73909543351980476972017-08-06T06:27:29.051-05:002017-08-06T06:27:29.051-05:00I used several excerpts from your essays on this t...I used several excerpts from your essays on this topic. Thank you for the material!<br /><br />http://obamasez.blogspot.com/2017/07/running-out-of-financial-road.html<br /><br />NitzakhonNitzakhonnoreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-35373621435731141292017-08-06T02:28:58.113-05:002017-08-06T02:28:58.113-05:00This certainly would not be new and for those of u...This certainly would not be new and for those of us who are older it isn't news.<br />I remember clearly when the prime rate was over 18%, mortgages rates were as much as 20% and it wasn't uncommon to pay 25% interest on car loans. The economy at that time under Carter was stagnant....and that's being kind. No reason it can't happen again....and be even worse. Dannoreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-52525732645095950732017-08-06T00:32:40.776-05:002017-08-06T00:32:40.776-05:00The word missing above is the deficit. If we can g...The word missing above is the deficit. If we can get back to regular growth levels that will help a lot. Another option not mentioned is inflation. Interesting times ahead...Ray - SoCalhttps://www.blogger.com/profile/11293232996007277071noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-32186436132532907492017-08-05T11:42:58.898-05:002017-08-05T11:42:58.898-05:00Interest rates are low because there is a great de...Interest rates are low because there is a great deal of money out there in the hands of people who are deathly afraid of losing it in some venture capital gamble (like stocks), so they put it in something safe, like bonds. Capitalism has been very successful, for the capitalists. They have made so much money they don't know what do with it, so they buy bonds. Until people start gambling with that money (investing it in some sort of business), the amount of money going into bonds will remain high and interest rates will remain low. And while interest rates are low, they could go lower. In Europe last year interest rates even went negative, which shocked the stuffing out of me.Chuck Pergielhttps://www.blogger.com/profile/14473338620167201696noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-25675944721696084122017-08-05T11:28:09.055-05:002017-08-05T11:28:09.055-05:00As I've mentioned before, Social Security now ...As I've mentioned before, Social Security now operates at a net loss. They pay out more in benefits than they take in from payroll deductions every year. So the difference must be made up out of the so called Social Security lock box. Thing is, there is no money in that box at all, every penny is in T-bills. The actual cash which came from running at a surplus for many years was taken, spent on congressional largess, and replaced with US paper IOUs. <br />A return to historical interest rates in the 4-5 percent range would cripple the economy in general and Social Security in particular. Those cans they have been kicking down the road so many years are about to be run over by a steam roller.Uncle Larhttps://www.blogger.com/profile/04008207593205949098noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-35112604761142833592017-08-05T11:12:43.714-05:002017-08-05T11:12:43.714-05:00At this point you usually hear people say that we ...At this point you usually hear people say that we don't have to pay them back. We could just default on them and go about our business as before.<br /><br />I'm no economist but even I know you can't default on even a percentage of what's out there without a class 11 scale earthquake happening.Seal Of Lionhttps://www.blogger.com/profile/05304620391386824536noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-80393615261809685452017-08-05T11:12:13.067-05:002017-08-05T11:12:13.067-05:00We could sell California (or parts thereof) to rai...We could sell California (or parts thereof) to raise funds to pay off some of the underlying debt, to reduce interest rates. Or perhaps Japan would like to make a bid on the Aleutians - they expressed interest of sorts during the 1940's.TheOtherSeanhttps://www.blogger.com/profile/07141473483312725136noreply@blogger.com