SAT MORNING POST "2+2=4"

In 1929-30 Credit Market debt bubbled up to a then historical high of 265% of GDP, we all know what happened next.

We have risen to 350% of GDP ! What will happen now?

The FED and governments worldwide have fully pledged themselves to fight the correction and eventual REVERSION TO THE MEAN

Will a $1B gov giveaway for klunkers save the auto industry which is down and out $10's of $B's? of which they SAY the program is already suspended for lack of funds??!!!

The US Gov in the meantime is off the HOOK for some $50 Trillion unfunded liabilities and is going in a rears some $2Trillion a year more fighting the fallout from a credit bubble bursting.

just now in background on Mainstream TV (MSM media) "signs economy is mending...." my wife yells up to me.

OK, we have some 6 million out of work, 9.5% OFFICIAL unemployment, closer to 16%.

We have the SAVINGS RATE RISING for the first time in decades, as Consumers have become cautious, cut BACK spending and have begun to try and pay down debt.

If Consumer Spending is 70% of US economy.....can someone please tell me how we are recovering? It takes MASSIVE credit and DEBT issuance to just keep the status QUO, now for every $4 we create $1 GDP dollar....businesses have cut, consumers have cut back, ONLY THE DAMN GOVERNMENT HASNT!!

We are in a period of DELEVERAGING, and IMHO it has just begun.

You could say because of ALL THE DEBT already in the system, the amount needed JUST TO MAINTAIN the staus quo has gone parabolic.

And the banks have healed??? WTF!!! Dont be naaive, only an accounting change and insider info which translates into TRADING PROFITS have changed.....all that crappy paper either STILL on their books (NOT RECOGNIZED) or with the FED.

Does the US GOV have infinite ROOM to increase an already meteoric burdon of debt? WHERE WE NEED TO BORROW ABOUT $200B every MONTH!!!??? what is the INTEREST ALONE on all our accumulated debt?

You saw my video of Ben Bernanke's wrong assumptions this whole period, so now all of a sudden he's a genius?

Trends are hard to turn around, COnsumers will stop saving in this environment and begin to take on huge chunks of DEBT AGAIN?

You either have CREDIT EXPANSION (expanding, growing economies) where you also hope that a good chunk of debt goes to productive business investment.....

OR YOU HAVE CREDIT CONTRACTION........where economies shrink and debt is either paid down or defaulted.....AKA NOW

THE SITUATION IS DESPERATE...so when you hear MSM telling you everything is getting better (because its getting LESS WORSE?) and the GOV talking heads telling you how things are improving, and the BLS data points to improvement, to MANY CALLING RECESSION IS OVER...
PLEASE take with a grain of salt! WHat happens to us IF the GOV debt can no longer we floated?What happens If Obama pass tax hikes? NEw expensive programs we can't pay for?

How CONFIDENT are businesses in current environment?

Again, the ONLY way continue the status quo is to HOP UP DEMAND FOR DEBT and finuished products.....as a historic % of our factories.......output lay idle....good luck.

Lastly, Chinese GOV stimulating what over there with tons of idled factories and reduced worldwide consumer demand? AND

COMPANIES are "beating" expectations? earnings UPSIDE surprises? almost all gains to the new earnings miracle have come on the backs of fired workers, reduced COSTS......how many expanding REVENUES?

Those idiots crowing about a NEW BULL MKT don't know shit about history or anything about the state we're in.

Duratek