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Hedge Funds have to cover.  Those that are short must buy.  Those that are long must sell.  Banks getting squeezed.  Investers locked out of their muni funds.  Money money everywhere not a drop to spare.

Here is the insanity.  As a nation we became dependant on our fellow citizens borrowing money to keep this madness going.  People borrowed money to buy houses, make renovations, buy cars, take trips, and more recently to buy food, fuel and insurance.

No few can borrow and business are asking where are my customers?  Cities are asking where are my tax revenues?  States doing the same.  Hard working people are asking why am I getting fired?

For anyone with foresight, this was very obvious at least a couple years ago.  You cannot build an economy on debt.  Over the past seven years, we borrowed like we never borrowed bofore.  LIKE NEVER BEFORE.  The effects are now raining down upon us and the damage will grow week by week month by month.

Until our homebuilders restructure and wipe out the debt.  Our banks come clean with the true value of the balance sheets.  Our cities debt get restructed to levels that can be sustained.  Putting a band aid on an aterial bleed will accomplish little.

Mommy, why are the rain drops putting holes in our roof?

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