Another Global Economic Crisis?
By Clint Kennedy
September 25, 2011
At the core of the current European financial crisis, the US slump and even placing China at risk, is the valuation system of the banking industry. Do the loans and securities issued by banks, mortgage companies and investment firms represent the real value of what is being borrowed against? For many years since World War II hard working Americans paid down their mortgages to own their homes, reduce their monthly expenses and have some real asset value. But the banks have over leveraged this value, by borrowing on what has already been borrowed; by leveraging on what has already been leveraged against.
As the value correction becomes apparent again and again, it may send investors in to a panic. Don’t despair! The desire to own real assets is now global! Real assets have paper attached to a real physical product. Citizens of all countries want to be able to own something to show for a lifetime of labor, to pass on to their children and make life better for them. This altruistic desire holds even more value than the greedy overleveraged securities of the banks. The demand for real assets is increasing. The revitalized human worker, the working class, the global middle class, will resurface with successful gains in their standard of living and in the real value of what they own.
Occurring concurrently is the growth of technology. Products become cheaper to produce. Food easier to grow and distribute. New energy supplies are becoming available.
So grab your mininetbook (minilaptop) for $90! Go on over to McDonald’s and have a healthy Fruit and Maple Oatmeal for about $2! Enjoy some apps if you like! And watch the bankers pull their hair out!
Copyright © September 2011
By Clint Kennedy
September 25, 2011
At the core of the current European financial crisis, the US slump and even placing China at risk, is the valuation system of the banking industry. Do the loans and securities issued by banks, mortgage companies and investment firms represent the real value of what is being borrowed against? For many years since World War II hard working Americans paid down their mortgages to own their homes, reduce their monthly expenses and have some real asset value. But the banks have over leveraged this value, by borrowing on what has already been borrowed; by leveraging on what has already been leveraged against.
As the value correction becomes apparent again and again, it may send investors in to a panic. Don’t despair! The desire to own real assets is now global! Real assets have paper attached to a real physical product. Citizens of all countries want to be able to own something to show for a lifetime of labor, to pass on to their children and make life better for them. This altruistic desire holds even more value than the greedy overleveraged securities of the banks. The demand for real assets is increasing. The revitalized human worker, the working class, the global middle class, will resurface with successful gains in their standard of living and in the real value of what they own.
Occurring concurrently is the growth of technology. Products become cheaper to produce. Food easier to grow and distribute. New energy supplies are becoming available.
So grab your mininetbook (minilaptop) for $90! Go on over to McDonald’s and have a healthy Fruit and Maple Oatmeal for about $2! Enjoy some apps if you like! And watch the bankers pull their hair out!
Copyright © September 2011
