Re: The Coming Greater Depression of the 2020s
Posted: Sun Jun 07, 2020 2:37 pm
I don't disagree necessarily with the potential cited by aerymsum.
1. our economy relies upon morons (called consumer spending). If what I write offends anyone, it could be just too bad. I give an example with cars and the people buying new cars in my neighborhood.
a. do you think that you can take your Tesla automobile to any repair shop and have the codes read by anyone who has a code reader? The answer that you have to go to an authorized Tesla dealer because the codes are not available to the general public.
b. my neighborhood is festooned with new Jaguars and Land Rovers. If any one ever followed the reliability of those two cars, who owns the companies today, they never buy one. The required disclosure is that I once had a restored Jag. It was fine until some person crashed into me, the car was being fixed for 5 months and I had a free car rental and I donated the car to the Boy Scouts when it was finally repaired, so I didn't lose anything.
c. the federal reserve system sets the length of time that banks can finance cars. This is despite what people think. At one time, the maximum term was 4 years. Now, it is seven years. Easy credit will help deferred show-off car purchases.
2. housing was all screwed up in the Great Recession. Today, my local jurisdictions are forbidding evictions and providing for deferred payment of past due rents. The feds have already put the pressure on the nationally insured banks (which is basically all banks except one in Los Vegas). The feds are counting on inflation to make owed obligations cheaper (meaning if you gave credit you are going receive a dollar in repayment with less value than when you loaned it).
3. I grew up in an economy wherein not everyone on the block had a television, families didn't have two cars, people went camping and didn't spend thousands for a week at Disneyworld. Sure, if we go back to those days, watch out. When my next door neighbor with 4 cars gets rid of two, I will be concerned. I will be concerned when all the princes and princesses on my block give up their cell phones and walk to the high school which is about a mile away.
1. our economy relies upon morons (called consumer spending). If what I write offends anyone, it could be just too bad. I give an example with cars and the people buying new cars in my neighborhood.
a. do you think that you can take your Tesla automobile to any repair shop and have the codes read by anyone who has a code reader? The answer that you have to go to an authorized Tesla dealer because the codes are not available to the general public.
b. my neighborhood is festooned with new Jaguars and Land Rovers. If any one ever followed the reliability of those two cars, who owns the companies today, they never buy one. The required disclosure is that I once had a restored Jag. It was fine until some person crashed into me, the car was being fixed for 5 months and I had a free car rental and I donated the car to the Boy Scouts when it was finally repaired, so I didn't lose anything.
c. the federal reserve system sets the length of time that banks can finance cars. This is despite what people think. At one time, the maximum term was 4 years. Now, it is seven years. Easy credit will help deferred show-off car purchases.
2. housing was all screwed up in the Great Recession. Today, my local jurisdictions are forbidding evictions and providing for deferred payment of past due rents. The feds have already put the pressure on the nationally insured banks (which is basically all banks except one in Los Vegas). The feds are counting on inflation to make owed obligations cheaper (meaning if you gave credit you are going receive a dollar in repayment with less value than when you loaned it).
3. I grew up in an economy wherein not everyone on the block had a television, families didn't have two cars, people went camping and didn't spend thousands for a week at Disneyworld. Sure, if we go back to those days, watch out. When my next door neighbor with 4 cars gets rid of two, I will be concerned. I will be concerned when all the princes and princesses on my block give up their cell phones and walk to the high school which is about a mile away.