Credit Suisse: America is in Trouble

For your consideration. This pie chart is indication that America might be sliding towards a depression.























This article, points to some very good reasons as to why this on coming depression might be the case. Before quoting a snip from it, and urging you to read and ponder, it is important to remeber one imporant thing. If you, the person in debt, did not go off and try to live beyond you means, take risky loans that you could not pay back, then America would not be in the mess it is now. Sure, the government might be in debt, but it has the strongest military in the world to back its financial situation. You on the other hand are a burden on the government when you go out and live outside your means instead of within them.

Given the recent credit deterioration in the subprime and Alt-A markets, and the likely fallout throughout the entire housing chain, we are of the opinion that there is a very real threat of “pent-up supply” that will hit the market in the next six-to-twelve months as a result of the lax underwriting standards of recent years.

Before this period is over, it will be remembered for many years in history. Long-time readers will recall what I wrote about CNBC's Real Estate Roadshow in 2Q05. I said that was the cycle top and I called myself the Rat Catcher. Look at what's happened to the homebuilders since.

America is in deep trouble because it loves a good story - Goldilocks, Pied Piper and all. For some reason, the people trust these story-tellers. Well, listen and weep.

Therefore, it is the conclusion of this blog that those that are in debt are un-American. True patriots will not be in debt. Are you a traitor? If so, get out of debt, and your treason may be forgiven!