Watch Out, the Financial Crisis may be Upon Us. [View All]

[louis c]

I have always (Actually since bush and the Repukes have taken over) felt that our financial policy defies any common sense.

Deficit spending, trade imbalances, a runaway budget, reduced wages, jobs going abroad, health insurance crisis, huge property tax increases, cuts to states and cities, and on and on, can only lead to a financial disaster.

No smoke and mirrors guru, like Alan Greenspan, and certainly no morons like chimp and friends, can convince me otherwise.

Today's 174 point drop in the Dow is the thing to watch.

If tomorrow, the Dow does not rebound, watch out.

You see, all this speculation and double-talk from all these talking heads like Covutto defy what's so obvious.

Our country is linked to crude oil, like it or not. We can not climb out of its grasp in the foreseeable future, so we are prisoners to the market forces.

I believe it is as simple as this. Our huge budget deficit, trade imbalance,and personal debt has caused our dollar to drop like a stone. Oil is priced in dollars, and even if it wasn't, we still have to buy it with dollars. If a barrel of oil costs $50, and the dollar loses 10% of its value, oil must increase to $55.

This increases everything made here, weakens the dollar more, causes a bigger defect, a still weaker dollar, and a poorer economy.

As the debt grows, interest rates must increase to sustain the borrowing, people will no longer be able to refinance their personal debt. Consumer confidence will wane, people will buy less, jobs will be lost, home prices will fall, the real estate bubble will burst, foreign investors will call in there loans and sell American investments.

I hope to God that I'm wrong, but I have had this nightmare while awake every day for over three years.

I hope someone can convince me that everything will be just fine, but please do it with facts and no Greenspan, Bush, and Fox News Bull Shit.