Comments on: The Credit Cycle Has Turned

By: Robert

Robert — Fri, 18 Sep 2009 23:48:35 +0000

“THE CREDIT CYCLE HAS TURNED…from expansion to contraction.”

Ding!Ding!Ding!Ding!Ding! We have a winner! That line nailed it. And the credit cycle has turned because social mood, which influences action, has turned, from expansion to contraction. That means we are about to see a MAJOR contraction in the quantity of (money + credit) (about $64B currency, about $52,000B credit). When those trillions of credit get wiped out (mostly by debt defaults), we will see a HUGE deflation. McMansions that went for $1.5 million, you could easily see go for $30,000. Those $25,000 automobiles you’ll be able to buy for $500. A minimum-wage job today will appear very richly-paid when deflation makes itself felt. We will be able to buy gasoline for 25 cents a gallon, if even that much. Dollars that survive will buy many times what they buy today. Be prepared.

By: jason

jason — Thu, 17 Sep 2009 19:54:19 +0000

Even the supermarket chain Kroger is not making their expected profits because people can’t afford to eat near the end of the month.

By: Daniel Miller

Daniel Miller — Thu, 17 Sep 2009 19:29:31 +0000

Dear Harry and knucklehead. Keep up the good work! Tho government-(insert sector) complex needs flag waving-rubes like you. WHy does the central govt always ALWAYS revise unemployment #’s upward the week after they are released. I didn’t think anyone was stupid enough to buy it. I guess you two actually are. PS you’ve got some Bernanke bearnaise on your chins.

By: ducdorleans

ducdorleans — Thu, 17 Sep 2009 18:34:00 +0000

A crystal clear analysis of the state of the economic old world, i.e. EU and USA. And most people in those economies agree wholeheartedly by their behaviour. More savings, less holiday, less travel, less hotel, less employment etc. Atm, it might seem that the stock exchanges disagrees, but that is purely due to reasons proper to that same stock exchange. Just reread the Book, freely available on the web. In the end, stocks cannot deny your analysis, but whether that is today or in a month, is a matter of how much money the people in the know can get out of the suckers.

By: John

John — Thu, 17 Sep 2009 16:25:20 +0000

BB is correct in my opinion, overall. It’s the timing that counts. Namely, when do all of these doom and gloom predictions finally manifest themselves?

Well, they’ve been showing up bit by bit, for quite some time now. The puzzle remains incomplete, but give it time.

My current concerns are that a real estate bubble is ongoing in China and the money-printing bubble continues growing unabated in the U.S. Bubbles replacing other bubbles; some popped, some not.

The only way for “prosperity” to return in all of its magical American Empirical “Happy Motoring” universe, Mr. Kustler advances, is when the G20 countries compose and sing a single economic anthem from the same song-sheet, all in harmony and volume, allowing the rest of us to skid through this giant Ponzi scheme and out the other side unscathed.

Otherwise it’s to Hell in various-sized handbags, handcarts, used cars, empty Twinkies boxes and other detritus of Modern Civilization.

By: Harry

Harry — Thu, 17 Sep 2009 15:34:29 +0000

Just another knucklehead: Very well said! More great economic news this morning. At some point all these doomers have to face the reality of a growing economy. IMO, I believe we’re setting up for a nice boom in economic growth.

By: Just another knucklehead

Just another knucklehead — Thu, 17 Sep 2009 15:22:27 +0000

I spent 2.7% more of my discretionary income last month, because I feel things are a little better than a year ago. BB apparently lives and breathes in Europe. I’m not sure he’s big on the U.S. or a patriot. He’s looking for doom and gloom and with no hope for the US. We all still live day to day, with either caution or pessimism. BB chooses pessimism.

But, on a global scale, there are billions of folks who want a TV, a laptop, a burger, a car and a set of golf clubs. Billions of them. Sooner or later they will get their burger. And that will create financial opportunity for those who want to work, think and invest.

By: LAGirl

LAGirl — Thu, 17 Sep 2009 15:18:35 +0000

This morning all the talking heads were all smiles, talking about how we are now in a recovery and the economy is getting back on track. But I look around me and so many people I know are losing their jobs and can’t find another one. Reminds me of 1984.

By: always right

always right — Thu, 17 Sep 2009 12:19:05 +0000

Harry…It is apparent that you sir are….Knee deep in the proverbial SHAM… you think you know but you have NO idea…Don’t keep taking the time to comment on something you obviously do not understand…Go stimulate your local economy in the midst of this (SUCKERS) rally…the nation needs boobs (BIG BOUNCING ONE’S) like you to save us all from utter doom…you’r A HERO Harry and we all envy you’r insight and wisdom – So in tradition of the steriotipical (HERO) GO TAKE A FLYING LEAP OFF THE TALLEST BUILDING… IN A SINGLE BOUND.

By: JMR bayou bobby

JMR bayou bobby — Thu, 17 Sep 2009 11:17:04 +0000

well written, interesting read