Comment: Of course the borrow has a

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Of course the borrow has a

Of course the borrow has a choice, same choice they have in any market conditions, borrow or not borrow. Banks are still not lending to "desperate" borrowers, except with government guarantees to these loans, although recently even that is beginning to loosen up some.

The "subprime-toxic debt" problem is widely been extinguished through refinance, a huge chunk of consumer debt has been eliminated, pent up demand is looming...what's that spell? This is been exactly what would be expected in a recession; defaults/reduction of consumer debt, reduced consumer spending/increased savings and the government doing the opposite, increased spending, increased debt.

The "inevitable"? The inevitable began in 1986 when we shifted from a producer nation to consumer nation. Yet this "inevitable" was kicked off by a HUGEMONGOUS bull market. It is only inevitable because the entire system is based upon Human Confidence, the basis of a fiat currency system, and it can continue into the billions, trillions, quadrillions, ect... of dollars, into infinity, SO LONG AS CONFIDENCE continues to carry it. Reaching deficit levels of 100's of Billions was a shock to this country in the early 80's and many thought it was unsustainable. And now we're spending trillions, and it is just a sustainable now as it was then, PROVIDED the players have confidence. Its all the same thing with more zeros on the end. Its only when confidence is lost that it begins failing.

I agree with you though, its total failure is inevitable. Just that it may not be now. It could easily right itself, lenders increase lending and borrowers increase borrowing, allowing the Fed to exit, wages to increase, government revenue to increase...all on top of a total debt (public and private debt) REFINANCED at a lower rate creating less of an interest burden on the "system". I am not saying this WILL happen, I'm saying it is possible, it can happen, and signs continue to point in that direction, though there are still ob stackles that could lead to de tours in the opposite die rection.

To see things as "inevitable" is for one, close minded. It leads to tunnel vision, which results in getting T-boned at the crossing...you gotta keep both eyes open, looking both ways, not just straight ahead. Things change, much of the dire conditions of a couple years ago have quietly been resolved while the "metal dealers" only continue to keep focus on the negatives. Actually accentuating the negatives every chance they get, while ignoring or denying any improvements. To sum it up in a word, "Denial". Just take a look at Zerohedge...does he ever present anything economically positive without finding some way to dismiss it?

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