"The Treasury Department reported Thursday that receipts from corporate income taxes fell 16% to $129 billion in the first half of fiscal 2008, which began Oct. 1. The federal deficit during the period hit an all-time high of $311 billion, and was up 20% from a year earlier."Well if that doesn't tell you everything you need to know....
That is what will happen if we cross that line. If you're not prepared for it then you are at risk of an immediate bankruptcy caused by the incessant whining about "where's my bailout?"
A while ago I started stating clearly - RAISE CASH. I meant it then and I double mean it now.
Michigan Consumer Sentiment came in at 63.2, from former 69.5, a 26 year low. Yet another huge decline is recorded as we have more evidence stacking up that consumers get it even if Wall Street does not.
Worse, inflation expectations ticked up huge to 4.9% from 4.3% last month. This is a really big deal, as once inflation "expectations" get unhinged they're basically impossible to stuff back into the bottle without dramatic action to tighten liquidity, because once people get into their heads that prices are going higher they start demanding higher wages and that spiral produces extremely bad results in the real economy. The last time we got that meme going was in the 70s and the result was an economic malaise of nearly 10 years duration - stagflation anyone?
Wake up investors!John McCain has joined the 'bailout fray", which is no surprise. It takes real courage to tell someone that they bought into a bubble and you can't - and won't - help them. McCain, just like the other candidates, doesn't have that courage.
""I don't think we're ever going to eliminate financial crisis, but we can do a lot to strengthen the system...and to improve the way the system responds," Mr. Bernanke said in response to a question after giving a speech in Richmond, Va."Liar.
The sad part of this is that 401ks and IRAs are protected if you DO file bankruptcy. How many consumers know that?
"The rise in borrowing shows just how addicted the U.S. consumer has become to credit. Even as borrowers are cut off in one area, they promptly look for new sources. Workers have increasingly been raiding their 401(k) plans to take out loans over the past year, according to plan administrators and nonprofit groups.
Now, mortgage brokers say some clients are calling them in a panic, worried that their bank will freeze their home-equity lines. Deborah McNaughton, president of Legacy Financial Services Inc., a mortgage lender in Placentia, Calif., says several of her clients have recently borrowed more from their home-equity lines of credit and stashed the money in bank savings accounts. Theresa Leick of San Juan Capistrano, Calif., a loan processor who works with Ms. McNaughton, pulled $21,000 from her available home-equity line of credit in February to park in a certificate of deposit."
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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