What if housing bubble were bread bubbles? The Bread Bubble of 2007: Due to irrational consumer buying patterns, consumers were over paying on the price of their bread and now the bubble has burst. Everyone in the country randomly stopped wanting to pay for bread at those prices, and have decided to go without bread. We must now bail out the bread manufacturers to save the bread industry, and avoid a deflationary bread crisis. Even though the American people are paying the bread manufacturing companies, it does not imply you will get any bread. The government instead will jump in and regulate these radical, anarcho, unfettered capitalist bread markets to avoid these wildly speculative bubbles in the future. The Federal Reserve will begin a Quantitative Breading program where they will buy $85 billion worth of bread a month from bread manufacturers in order to maintain the previously wildly high bread prices until bread prices have stabilized, i.e., you start buying bread again at those prices. Quantitative Breading will intentionally create a shortage in available bread and thus artificially raise the price on available bread. Since high bread prices is the goal, the purchased bread assets will be withheld from the people. If people just stopped hoarding their money from the rest of us, our economy will thrive! The liquidity injection to bread companies, i.e., money to bread companies, raised the entire countrys monetary base, i.e., all the dollars in the economy, from $850 billion total in 2007 to $4.1 trillion as of Aug. 25, 2014. In other words, the government has given $3.25 trillion to bread companies since 2007. Or in OTHER words: the government has given bread companies 382.4% more money than ALLLLLLL the cash in the entire US economy in 2007. ******this of course does not include the initial $29 trillion bailout in credit, cash, and other financial instruments from the bread bubble bursting in 2007. (Though there is probably some overlap.) I think our government has taught those greedy Bread Street companies a damn lesson!!! Peter Schiff was right. haha. https://youtube/watch?v=sgRGBNekFIw
Posted on: Tue, 09 Sep 2014 22:59:17 +0000
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