Here are my thoughts on the presentation done by Dr. Christopher Thornberg at Nick's meeting last night in the Inland Empire.
1- We are in a recession. Witness this morning Ford announced sales down 33%!
2-Chris believes we do not need the bailout bill as the mechanisms are in place already to fix the problem. In fact - he is against it. The Fed Discount window is open - that is all we need.
3-We have 2 choices - take the write downs and losses now in the form of market contraction, or bail out the system by injecting false support (read that as more national debt for us and generations to come)
As the old commericial so aptly put it - you can pay me now, or you can pay me later.
Please - spend a few minutes at Chris' site http://www.beaconecon.com/index.html - it will open your eyes.
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