We are all going to hell in a handbasket

Those of you who know me will be aware that I write several property investment blogs. The luxury property blog and international property investment.

Unfortunately, in the process of researching for these blogs, mostly to try and answer the question, “where will house prices end up?,” I have come to a depressing realization about the current “credit crisis.” I keep reading crap about this being a “crisis of confidence,” but this is simply untrue and it is actually a liquidity crisis of a proportion never seen before.

I must admit to a healthy distaste for politics, but even I allowed myself a few rays of hope that Mr. Obama would make some changes to the current system. 100 days is all it took to dispel me of that notion. He has made it as clear as all the other scum-sucking parasites that his only real interest is propping up the financial system to give the stock markets a boost. Everything else gets a back seat.

Anyhoo – to the meat of this post. I have slowly come to the conclusion that there is not enough money to save the current system, and the only option available seems to be printing more money. So much is going to have to be printed that what little money left in anyone’s pockets is going to be worthless paper. Both the British and American governments have already begun a process of “quantative easing,” and the Eurozone is coming under pressure to do the same thing.

The entire world’s economy is based around selling pieces of plastic crap from China and tin boxes called “cars.”

And not one of these scum sucking parasites has even so much as suggested that this is not sustainable. Of course it is not sustainable. And we have reached the point of no return. Since when is the government in the business of selling cars? As of now – that is when. Just look at the amount of government involvement in the car business and you will see what I am talking about.

The USA government Inc has already bailed out GM and Chrysler for billions of dollars and it looks as though Mr. Obama will be joint owner of GM – if they manage to avoid bankruptcy; Volkswagen, which owns SEAT, Audi and Skoda is part owned by the German state of Lower Saxony, with veto powers over company matters; the French government owns more than 40% of Renault, which in turn owns Dacia, Samsung, and a 44% share of Nissan……. and on and on.

Combine this with what is now effectively a government owned banking system across the US, UK and much of Europe and we have now allowed our governments to dictate what we buy, how much we pay for it and how much money we have available to spend. Plus – the government is just about the only employer in town. This is a huge mistake and can only end in tears.

France for example has an official unemployment rate of around 8%. Due to the massive amount of people outside the system and the fact that many actually unemployed groups are not counted, the genuine figure is probably nearer 16% – and rising. So, here, we have a situation where 20% of the country will soon be unemployed, 50% works for the government in one way or another – and it is down to the remaining 30% to support this 70%. Britain and the US are headed in the same direction. If you include bankers, insurance agencies, car makers and goodness knows what else before this crisis has run it’s course – most employed people will be working for the government Inc.

Can anyone say “UNSUSTAINABLE,”? Because that is what this is. Fascism of the worst possible kind, where most of the people, most of the time, have to look to the government for employment. Good grief ! How long before the British Government Inc has the right to look into your government-owned bank account to make sure you paid enough taxes?

And make no mistake – they are broke enough to need to do so.

It is going to get worse, because the amount of losses suffered by the financial services industry has nowhere near been fully  revealed. The losses in the commercial property sector are going to be enormous this year and next. Merely re-valuing these bank’s assets or taking them off the books to allow them to show some sort of strength is not going to work. The underlying fundamentals have not changed. What was a worthless derivative at the start of the crisis is still a worthless derivative. The banks lent out more money than was sensible given their capital positions – and that has not changed. The recent stress test in the US showed that 6 of the biggest banks tested will need more capital. And you know they put a rosy picture on things.

And you know what? – I do not want the government telling me which car I should buy, how much I should pay for it and then lending me my own tax money to do so because it is so fucking expensive – seeing as it was made by the most inefficient organization know to man – the government.

Oh – and if you are still wondering what your house will be worth by the time we “recover,”

Whatever it was worth in 1980. When this crisis started being created – by the government.