Friday, January 8, 2010

Is the British Consumer Dead? Doh!

Brown and Obama leading the world out of recovery with 'stimulus' and 'quantative easing' huh? Well, how much of an increase has there been in consumer credit in the US?

Oh, none at all.

Ok, if you borrow some money you need some security. You get a loan on the basis of a piece of land you have, or some gold you keep or your car or your second home or whatever. The problem is that when all that 'collateral' has ALREADY been used to get a loan you can't use it any more. Everything is loaned against. And so, no-one is lending and no-one can borrow any more even if they wanted.

Exactly where does anyone see a 'consumer recovery'? It doesn't exist no matter how much Brown, his press chums and everyone else want it to.

As Karl Denninger of Market Ticker says:

We cannot recover until we purge the excess debt from the system, and the longer we take to do that, the longer the pain will last and the worse it will be.

What we are getting from everyone from banks to corporate economists and from government to the press is 'pretend and extend' tactics. They think that by throwing taxpayers' money at the problem everything will be ok. So, they print and print because otherwise we'll have to accept that the banks are all insolvent. Why do you think the government can't get the banks to lend money? Cause the banks need money to shore up their losses. Credit is not coming back. As we see above, the consumer is dead.



Anonymous said...

Great information. Lucky me I came across your
website by chance (stumbleupon). I've saved as a favorite for later!

Here is my site Learn Additional Here
Feel free to surf my site - hawaiian islands vacation packages

Anonymous said...

Unquestionably imagine that which you stated. Your
favourite justification seemed to be on the web the simplest thing to understand of.
I say to you, I definitely get irked even as other folks consider concerns that they just don't recognize about. You managed to hit the nail upon the top and defined out the whole thing with no need side-effects , other people can take a signal. Will likely be back to get more. Thank you

My website - kredit ohne bRgen
Here is my site ... best search engine optimization companies

Anonymous said...

Hello! I could have sworn I've been to this site before but after browsing through some of the post I realized it's new to me.
Nonetheless, I'm definitely happy I found it and I'll
be book-marking and checking back frequently!

Take a look at my web site ... how do i get a home loan with bad credit

Anonymous said...

It's actually a nice and helpful piece of info. I am happy that you shared this helpful information with us. Please stay us up to date like this. Thanks for sharing.

Check out my page; web hosting comparison

Anonymous said...

We're a gaggle of volunteers and opening a brand new scheme in our community. Your site provided us with useful information to work on. You have done a formidable job and our whole group might be grateful to you.

Stop by my website; best all inclusive resorts
my web site > seo course

Anonymous said...

Hi mates, how is all, and what you would like to say regarding
this article, in my view its genuinely amazing in favor of me.

Here is my web-site :: Equity Loans For Bad Credit

Anonymous said...

Write more, thats all I have to say. Literally, it seems as though you
relied on the video to make your point. You clearly know what youre talking about, why throw away your intelligence on
just posting videos to your weblog when you
could be giving us something enlightening to read?

Take a look at my homepage ::
Also see my site - simply click the next internet page

Anonymous said...

Very energetic blog, I loved that a lot. Will there be a
part 2?

Review my web blog: Reseller Hosting And Dedicated Server

Anonymous said...

Howdy! This article couldn't be written much better! Reading through this article reminds me of my previous roommate! He always kept talking about this. I will send this article to him. Fairly certain he'll have a good read.
Thank you for sharing!

My web blog: internet marketing company
Also see my page - bad credit auto loan

Anonymous said...

I blog quite often and I truly thank you for your information.
This article has truly peaked my interest. I am going to book mark your site and
keep checking for new information about once per week.
I opted in for your Feed as well.

Feel free to visit my blog :: voraussetzungen für private krankenversicherung

Anonymous said...

Hello, the whole thing is going sound here and ofcourse every one is sharing information, that's genuinely excellent, keep up writing.

my website - Usuario:Vernell63 - Wiki_Otras

Anonymous said...

Having read this I thought it was extremely informative.
I appreciate you taking the time and energy to put this content together.
I once again find myself spending a significant amount of
time both reading and posting comments. But so what, it was still

Here is my web-site ... Continuing

Anonymous said...

Do you have a spam problem on this blog; I also
am a blogger, and I was wondering your situation; many of us have created some nice practices and we are looking to swap techniques with others, please shoot
me an e-mail if interested.

Here is my weblog - geld Ohne Schufa auskunft

Anonymous said...

What's up mates, how is everything, and what you want to say concerning this piece of writing, in my view its in fact amazing in support of me.

Feel free to visit my web site - similar web page - www.Sacstateasce.Org

Anonymous said...

Oh my goodness! Amazing article dude! Thank you so much, However I am going through issues with your RSS.
I don't understand why I am unable to subscribe to it. Is there anybody else getting identical RSS problems? Anyone who knows the solution can you kindly respond? Thanks!!

Feel free to visit my web-site: search engine expert

Anonymous said...

Having read this I believed it was extremely enlightening.
I appreciate you finding the time and energy to put this informative article together.
I once again find myself personally spending a lot of time both reading and posting comments.
But so what, it was still worth it!

my blog post just click