Turnips Unite!

Blog Simple, when commenting upon economic news (gloomily, of course), always wishes to placate our readers with the fact that our writers and staff are wholly insulated from, and ignorant of, macro-economic mechanisms. We look at these events in the light of political occurrences, and only when they cross the threshold of mainstream news do we hazard a comment.

Still, the word meltdown springs to our lips of late, not based on vulgar calculations from the balance sheets, only from the gurgling of the press.

Simple facts make it clear that the real estate market has been jobbed, mega-billions siphoned off from loans foredoomed to fail. Much of that money will go to purchase politicians, security companies, and media control.

But at least real estate has some underlying value, however inflated.

But the coming meltdown of consumer credit will dwarf that of real estate. Without the backing of any asset, other than a service economy, US consumer credit is hovering above the howling void. The new bankruptcy law will try to salvage a few drops of blood from us turnips, it can never be enough.