A lot of the drop in debt is from the foreclosures and bankruptcies.

They no longer owe $350,000 and are renting but, they haven’t saved any money. They just defaulted on the debt they had.

Those that are saving are trying to repair the damage to their lost equity, lower 401K’s and IRA/s and other investments as they realize that retirement is closer than they thought when it comes to time left to prepare for it.

It is what happens in the retail store that really counts. We have business ramping up inventories now for the Holiday season but, what happens if that inventory sits on the shelf to a significant degree? Then we get more layoffs and another wave down not just in employment but, tax revenues from employment and profits.

Corporate tax receipts dropped 57% and that means it would take over 100% higher profits just to get back what is lost. You can’t even begin to get that much from raising taxes in other areas.

Also, Wall-e.

Republicans 22% of voters, Democrats around 36% or 37% and Independents that think both parties are bad are at 39% and growing. Democrats are just as bad as Republicans when it comes to destroying America. The book “America, Running on Empty” covers this quite well. This administration is proving them right. It is even worse than Bush because it took what Bush was doing and increased the deficits and spending even though that makes things worse.

Under Bush, we were already passed the point of growing or taxing out of this so why is this administration making it even worse?

Karl Denninger sums it up in this video from today’s articles on his sight. You either cut the spending and have a depression now, or wait for a collapse.

@#$%&!archives/1415-Labor-Day-Musings-Part-II.html
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Remember, he voted for this President to get the stuff Bush was doing ended and he is mad. He is very mad because instead, this President and the Democrat controlled Congress keep trying to make things worse.

JanPaul

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