Why the Stock Market will continue to fall…

[Deal Hunter]

"Either way, I don't believe it's possible to escape debt. One way or another it will be paid in full. The question is, who is going to pay it."

Technically, there is a way to escape debt.  In 1929, the government stepped in and paid it off for everyone.  That is going to be harder to accomplish in this century, but debt forgiveness has already been done.

Step 1: Our retirement accounts have forgiven the big banks.  Wall street "wrote down" massive amounts of investment value due to subprime derivatives and institutional investors that bought those derivatives were forced to take smaller yields or in some cases, no yields at all.

Step 2: Secondary markets will have to write down even more mortgage debt in order to return purchasing power back to consumers.  Consumption is the heartbeat of our economy.  If debtors don't forgive debts (or upside down mortgages), then whatever little cash consumers get will go toward paying down debt rather than spending it back into the economy.

Step 3: Tax reform will facilitate debt forgiveness.  Banks and mortgage companies will cut homeowners' debts to fall more in line with the market value of homes – thereby returning equity to the homeowner and encouraging consumption again – all in hopes of revitializing the economy.

So, technically, we ALL escape today's debt.  The homeowners, the banks and insurers will be relieved of their obligations by being able to write it all off on taxes.

The problem is that all that debt is reallly just being pushed off to our children – for when they reach working age and take on the tax burden we create today upon their shoulders in the future. 

 

 

[Mean Reversion]

Either way, I don’t believe it’s possible to escape debt. One way or another it will be paid in full. The question is, who is going to pay it.

It will be paid in full. But the value may not be the same.

To cite an extreme example and make a point. During the hyperinflation of the Weimar Republic in Germany 1923, if you would have loaned out money for someone to buy a car before the hyperinflation, when he later paid you back, those same Marks would only buy you a carton of eggs.

[Mean Reversion]

Either way, I don’t believe it’s possible to escape debt. One way or another it will be paid in full. The question is, who is going to pay it.

It will be paid in full. But the value may not be the same.

To cite an extreme example and make a point. During the hyperinflation of the Weimar Republic in Germany 1923, if you would have loaned out money for someone to buy a car before the hyperinflation, when he later paid you back, those same Marks would only buy you a carton of eggs.

[Mean Reversion]

Either way, I don’t believe it’s possible to escape debt. One way or another it will be paid in full. The question is, who is going to pay it.

It will be paid in full. But the value may not be the same.

To cite an extreme example and make a point. During the hyperinflation of the Weimar Republic in Germany 1923, if you would have loaned out money for someone to buy a car before the hyperinflation, when he later paid you back, those same Marks would only buy you a carton of eggs.

[Mean Reversion]

Either way, I don’t believe it’s possible to escape debt. One way or another it will be paid in full. The question is, who is going to pay it.

It will be paid in full. But the value may not be the same.

To cite an extreme example and make a point. During the hyperinflation of the Weimar Republic in Germany 1923, if you would have loaned out money for someone to buy a car before the hyperinflation, when he later paid you back, those same Marks would only buy you a carton of eggs.

[Mean Reversion]

Either way, I don’t believe it’s possible to escape debt. One way or another it will be paid in full. The question is, who is going to pay it.

It will be paid in full. But the value may not be the same.

To cite an extreme example and make a point. During the hyperinflation of the Weimar Republic in Germany 1923, if you would have loaned out money for someone to buy a car before the hyperinflation, when he later paid you back, those same Marks would only buy you a carton of eggs.

[Chris Scoreboard Johnston]

The best place by far to have had ones money invested since 1900 has been the stock market and it will continue to be. There will be bear markets along the way but the path will be ever upward. All these theories about why what has always been but will never be again are odd. Why is it that people cannot accept that things are going to be ok?

This theory is based on no facts at all and flies in the face of a over 100 year record of rising prices. Bad news and scare tactics sells tickets, but won’t make you any money. This dip we are experiencing is a buying opportunity, not right here exactly, but very soon.

[Chris Scoreboard Johnston]

The best place by far to have had ones money invested since 1900 has been the stock market and it will continue to be. There will be bear markets along the way but the path will be ever upward. All these theories about why what has always been but will never be again are odd. Why is it that people cannot accept that things are going to be ok?

This theory is based on no facts at all and flies in the face of a over 100 year record of rising prices. Bad news and scare tactics sells tickets, but won’t make you any money. This dip we are experiencing is a buying opportunity, not right here exactly, but very soon.

[Chris Scoreboard Johnston]

The best place by far to have had ones money invested since 1900 has been the stock market and it will continue to be. There will be bear markets along the way but the path will be ever upward. All these theories about why what has always been but will never be again are odd. Why is it that people cannot accept that things are going to be ok?

This theory is based on no facts at all and flies in the face of a over 100 year record of rising prices. Bad news and scare tactics sells tickets, but won’t make you any money. This dip we are experiencing is a buying opportunity, not right here exactly, but very soon.

[Chris Scoreboard Johnston]

The best place by far to have had ones money invested since 1900 has been the stock market and it will continue to be. There will be bear markets along the way but the path will be ever upward. All these theories about why what has always been but will never be again are odd. Why is it that people cannot accept that things are going to be ok?

This theory is based on no facts at all and flies in the face of a over 100 year record of rising prices. Bad news and scare tactics sells tickets, but won’t make you any money. This dip we are experiencing is a buying opportunity, not right here exactly, but very soon.

[Chris Scoreboard Johnston]

The best place by far to have had ones money invested since 1900 has been the stock market and it will continue to be. There will be bear markets along the way but the path will be ever upward. All these theories about why what has always been but will never be again are odd. Why is it that people cannot accept that things are going to be ok?

This theory is based on no facts at all and flies in the face of a over 100 year record of rising prices. Bad news and scare tactics sells tickets, but won’t make you any money. This dip we are experiencing is a buying opportunity, not right here exactly, but very soon.

[kewp]

The best place by far to have had ones money invested since 1900 has been the stock market and it will continue to be.

The best place to have money invested since 2000 has been gold.

There will be bear markets along the way but the path will be ever upward.

And real estate never goes down, right?

[kewp]

The best place by far to have had ones money invested since 1900 has been the stock market and it will continue to be.

The best place to have money invested since 2000 has been gold.

There will be bear markets along the way but the path will be ever upward.

And real estate never goes down, right?

[kewp]

The best place by far to have had ones money invested since 1900 has been the stock market and it will continue to be.

The best place to have money invested since 2000 has been gold.

There will be bear markets along the way but the path will be ever upward.

And real estate never goes down, right?

[kewp]

The best place by far to have had ones money invested since 1900 has been the stock market and it will continue to be.

The best place to have money invested since 2000 has been gold.

There will be bear markets along the way but the path will be ever upward.

And real estate never goes down, right?

[Author]

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