Re: Why The Economy Can’t Get Out Of First Gear

On Jun 18, 4:05 pm, Just Me <mutantmachin...@xxxxxxxxx> wrote:
On Wednesday, June 13, 2012 11:31:24 AM UTC-7, jon_banquer wrote:

"Rarely in history has the cause of a major economic problem been so
clear yet have so few been willing to see it."

I think the real issue is no so much the public debt, or the so called handouts to the the middle class,or even the handouts to the wealthy class, I think it's that the banks, stock market etc have forgotten what a capitalist economy is supposed to be.
The capital lent by banks or raised on the stock market should to be used to create product, be that cars or computers or services,sold at a profit,that profit can then be used to service the loan,or pay dividens on the stock.That should mean you are then able to borrow more,or raise more stock,make/sell more product etc.
 Now the "capitalist economy" is all about profit,the entire game is about how to package and repackage iou's and then move them around to generate profit. There is no product to sell,no foundation to hold the whole structure up so now it is starting to collapse,and the banks/stock market are all about protecting the profit,profit first product second or third,so now comes slash and burn cost cutting,starting with labour, the people who actually make a product to sell,but with no product to sell we don't need to pay people(notice how hiring is now human resource and not personnel) ,so with no money people don't buy stuff so there is no income,no profit, next step, more slash and burn to protect the profit etc etc.
 Now all there is are repackaged iou's being sold back and for between banks with a pretense the this is the "product" that makes the "profit" and keeps everything running.
  The mirrors are starting to crack and people are starting to wake up,will be soon enough to stop a major world wide crash? I don't know but I sure hope so.
 And one of the things missing is a functioning government,whose job is to manage the economy-not control-manage-regulations in place and enforced to, if not totally prevent the current kind idiocy, then to at least manage it so that it doesn't do the economic damage that is happening.

"The mirrors are starting to crack and people are starting to wake
up,will be soon enough to stop a major world wide crash? I don't know
but I sure hope so."

When you see huge protests at Walmart then you will know that people
are waking up.

When Americans start getting angry and stop buying Chinese crap than
you will know that people are waking up.

Right now, nothing of the sort is happening.


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