Deflation!

College credit hours.

Let me clarify this for you. Student loans are unobtainable, home equity loans (that is if you can demonstrate that you might have some equity but do it fast beacuse tommorrow you might not), and have you really considered divesting yourself of all that overpriced GE stock you are sitting on. This equates to diminished demand thru diminished disposable when bloated colleges and universities across the nation have overbuilt to drink from the same tainted tap of free money. This by definition will cause demand destruction and price reduction in the near term. Read that deflation. It's very real and a very good thing considering the overvaluation of nearly everything from toilet paper to gasoline.

The thing that we should all really consider is that is it correct to loan banks money on distressed assets which they will use to turn around and purchase the underlying assets in collapse at 20% or less (the hard underlying assets that we all need). These "assets" show up on a balance sheet somewhere when someone realizes that they have overshot 40% south of the cash flow values of these "assets" the values will re-adjust up thru demand pricing. When that happens they will have realized a near 300% profit with taxpayer dollars and will buy back all their warrants from the Fed. What happens then is the greatest inflation since the robber barons forced you to buy from the company store.(Read that implied slavery)

I am personally going to invest in an addition to an existing hemp to steam plant in Columbia. The bonds are yielding north of 16%, and I hear that the smokestack exhaust makes the city downwind very happy. My conscience is clear.

Mike C. of DE @ Nov 19, 2008 14:49:20 PM