The actual size of sub prime folly can be $500 billion. The derivative play is supposed to be over $ 50 trillion. The end game is uncertain, but can be very dire for all.
During the Great Depression of the 1930's people lost everything. President Kennedy's father was a rich man. He had some exposure in the stock market. When the shoe shine boy boasted that he also multiplied his investment, the wise & prudent man sold everything and the crash soon followed. He rewarded the youngster for the tipping him off!
The signs now are ominous. We are dependent on the free world. Any severe decline will wipe off the handsome salaries many youngsters are used to. The old have seen tough times and can adjust. People who have borrowed based on ever increasing income can be in for a spin.
If we do not take personal responsibility for our actions, we are doomed. No govt can or should bail people out for their foolhardy decisions.
When the US declines, China with $ 1.5 trillion reserves can become the big brother. They should already be licking their lips at the follies of US. I cannot just make head or tail of the huge payments made to the CEOs based on short term profits, when these same companies go hat in hand for survival soon after.
World prosperity & security are at risk because of the excessess of a philanderer. The US live in a make believe world of fanatasy many hooked on drugs and paparazy.
