Aside from blatant and rampant plagiarism, this blog will give you straight dope on what is going on in the economic world. Because it deals with what is going on, there is no other option besides rampant and blatant plagiarism. Life doesn't just happen, it happens repeatedly. Life leaves little room for anything other than plagiarism, especially in the fields of economics, history and politics because the SAME DAMN thing keeps happening again and again. E.g. Napoleon invades Russia and fails, Hitler invades Russia and fails.
So one question is just begging to be asked. Why does the same damn thing happen again and again, down through the ages, despite whatever solution is concocted to solve the problem? Because solutions come from people that are concerned with their own power rather than truth. If the truth of the matter was at the forefront of every issue, elections would be duller than egg salad made with only eggs and mayonnaise.
I couldn't give a flurking hoot about the aspects of finance, economics or politics that obscure the truth of the matter. Power and profits have led to a manipulation of the truth in these areas. And while it's darling that people are misleading people for their own advancement, it's a damn shame that life is so time consuming that 99.5% of all people have no clue about what is going on in the powers impacting their lives.
This blog shall not be a vanity mirror to highlight my beautiful little face; I'm not that self centered. Everything in here is for you, the reader! It will be about why some economies die, why politicians lie, and how to correctly tie a tie. Be happy to know, the preceding sentence is the first, and last rhyme of this blog.
For us to understand why the price of stocks just fell off of a cliff, the first thing people need to know is this: credit contraction ALWAYS follows periods of credit expansion. Think about it. What happens when you max out your credit cards? (Tune into this blog for the explanation of how and why credit cards came to be.) You either declare bankruptcy, basically default on those loans, or you tighten your belt and begin paying them off. What happens to your credit score when you go on a spending bender with your credit cards? It goes down. What about your interest rates? They skyrocket. The whole system is rigged like a rocket powered see-saw. You go big, so big that soon you have to go home, and then some repo guy shows up and takes your home. If you're lost at that, fine. The core tenant was a) credit expands at its maximum rate, until b) it contracts at its maximum rate.
The first post on this subject will be done next time. It will deal with 3 BIG time credit expansions followed by contractions. Here's a preview: 1) installment purchase plans 2) fiat money 3) CDOs.
Stay optimistic
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