Credit: the Global Social Welfare System

What is credit?

Borrowed money.

Why do you have to have to borrow it?

Because you likely don’t have it.

 

Credit has become the world’s social welfare system; a blank cheque people could write for themselves. Easy to sign-up and even easier to expand the limit of.

Less and less does it matter if your initial asset collateral still exists. The more debt you have, it appears the more you may be able to take on. So lenders lend, and they really shouldn’t have.

 

Should we expect that soon retailers will identify, allow and deny customers? Probably.

 

PD

Did Someone Say 'New World Order'?

Look, don’t smirk this off.

It’s not just that I am uptight about centralized power… it’s downright prophetic.

 

The EU is leading the way and why not?  The Globe and Mail’s story this morning:  Wanted: a New Financial Order.

http://www.theglobeandmail.com/servlet/story/RTGAM.20081017.wbretton1017/BNStory/International/home

 

All that power in the hands of just a few; someone a world away, in a distant spherical economy will potentially be able to determine my worth to buy and sell.

Incredibly, it looks like we will see the beginning of the end of our personal wealth and prosperity.

 

PD.

You Go Suze! A Good Dose of Truth!

Suze Orman…

This lady has it absolutely right. A good dose of honesty is what most people need; the fact that consequences are real.

Can you imagine an entire generation who thinks you can have it all before 30? Before 25? Worse yet, that they DESERVE it all?

Yes, we are looking at it.

Who’s fantastic idea was it to skip the chapter on consequences in grade school? Or at home, in basic parenting?

God help us to see that sometimes the hardest lessons can have the greatest value in turning our lives around.

Pay the debt down… don’t accumulate more, stop living a lie (beyond your means).

Your bank value never equaled your personal value.

Money is not the answer to all things, it just seems that way.

 

PD

Master Control Switch

12:08 CST - Wow – am just listening to the former CEO of Lehman Brothers testify before the US Oversight Committee and this Richard Fuld guy says that what would really help the situation is a global master control area that all trades would be downloaded to nightly as a regulation requirement. Then, he says, any issues arising (as the current mess?) would be readily visible and intervention could ensue immediately.

 

Who would be in charge of that big brother control center, Mr. Fuld? I wager wars will be fought to win that post.

 

THAT is the end of the free market.

Wala.

 

Cheers.

Looks Like the Tortoise May Actually Beat the Hare

Well, feels like a good day to be a late bloomer in mutuals, in stocks and ANY funds in general.

Investors turned dentists have yanked and pulled their way to a toothless smile with no bite.

 

Under the pillow, in bonds and T-bills is the way at this time.

The slow and steady turtle in the race is the winner today.

 

Investors Pulled Billions from Funds

http://www.reportonbusiness.com/servlet/story/RTGAM.20081002.wific1002/BNStory/Business/home

 

Cheers.