TALE OF TWO BEAR BOTTOMS "TALE #1"

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Fundamentally in 2003 we began to see effect of the LOW interest rates, and LOOSE money policies, including the Japanese carry trade that kept feeding the LOW US rate machine, and debt machine.

AN historic housing BOOM tunred HISTORIC BUBBLE began, goosing everything you can think of and US companies ran into 2007 with RECORD EARNINGS GAINS. FINANCIALS were making money hand over fist by loaning to anyone, lying and packaging them off to anyone, rating agencies played the game and most got AAA rating. RECORD derivitive contracts were built up into the $70 Trillion land.

Cars sold, homes sold, condos sold, prices soared, speculation, flipping, credit/debt abuses ran amuck, NO agency nor FED nor SEC Treasury blew the whistle, too many on WALL STREET were sucking teet.

For the homes furniture was bought, asphalt was laid, cement poured, glass fashioned, furniture sold, lumber, etc etc etc.....world synchronized economic melt up.

BUT IT CAME AT A COST........it wasnt REAL

THEN the fallout came, and the bailouts, and the speaches.......after 2001 devestated this country, Consumers got back on their feet, low interest rates worked as well did Consumer spending ramped to the heavens by RISING HOME EQUITY!!!!!!!!!!!!!!!!!!!!

$TRILLIONS were borrowed against these rising values and SPENT.....YES it was one sweet deal while it lasted...when all are making tons of money....who cares?

ANd when it breaks, the connected get BAILED out, oh well for the good of the people....pstttt

Read on next post for TALE 2........end of this story....layoffs never went above 500,000...and people were put QUICKLY back to work. With SO much spending power, with such LOOSE CREDIT and historic expansion of DEBT.....the things booms and busts are made of. FUEL FOR THE FIRE WAS THERE>

D