The Unraveling - Random Thoughts

Lexichron

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Saturday June 28, 2008 · 9:52 PM PDT

2008/06/28 · 21:52

Two ways the economy can go. A peaceful drift into the next great depression (bad enough)...or things could become more dramatic. The credit crisis will continue to worsen once the effects of the home mortgage debacle, then vehicle loans, then credit cards and finally the cost of the wars come home to roost. (If you don't believe that we're headed for depression, I would suggest FinancialArmageddon.com, Dollarcollapse.com or the Royal Bank of Scotland).

Let's take a look at some of the events that are a given at this point:

People continue to lose homes in numbers that make the current foreclosure rate look tame by comparison.

Construction people and those who support them flood the job market, unemployment becomes much higher, wages become lower.

People lose their cars first and then their available credit, many are bankrupt.

The dollar continues to fall against the only international currency that matters, oil. The necessities of life (primarily food and fuel) become unaffordable for many.

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