on FIRE

[GregW]

This has been a confusing read. I thought I understood this debt as money and inflation is bad but deflation is worse argument. I would like the contributors separate opinions concerning:

What happens when JCP bankrupts and their real estate is less valuable than the loans backed by it? Who pays the difference if any?

Should the Federal government continue to sell US Bonds to China? What happens if the Chinese want higher interest or stop buying at all?

How are the Student Loan Debtors going to gather enough of the productivity of the US economy to pay the interest on and the principal of their loans? What happens when some of these people literally run out of the ability to pay anything to their creditors, land lords or car loan owners?

What happens when the Finance, Insurance and Real Estate economy trips over bad loans, huge insurance payment demands, and a dramatic drop in commercial real estate values because people have run out of credit and have stopped buying both foreign and domestic mass production output?

I have read statistics that the 19 to 35 year olds are buying 20% fewer automobiles than previous similar age groups. Automobiles are the quintessential mass production consumer object that requires loans for most to purchase. What happens when people no longer buy either the loans or the product? What happens to the industrial investment or the banks that made the loans?

In fewer words; What happens when the FIRE goes out?

[pie_row]

Originally Posted by GregW

This has been a confusing read. ...

The short answer is also very unpopular. You can only push water up hill so long before it starts running downhill again.

Great Depression 2.0

They have been putting in the infrastructure to deal with 40% plus unemployment for a long time now.

I'm not a doom and gloomer I'm a realist.