27 Sep '14, 10pm

#peakoil Crash Course – Chapter 15 – Demographics: Age distribution is too lopsided to support entitlements Wh...

Entitlements are the least of our worries at this point. Just like the pensions and stock portfolios, these abstractions are nothing more than an illusion of wealth. When the descent gathers steam the value of these paper assets will evaporate. Liabilities will evaporate as individuals and business close their doors. There is no way to tell the degree or duration of this potential descent but we can say there is severe imbalances, stresses, and pressures. In today’s market with today’s inflated values, the leverage, and the counterparty risk from rehypothocation any contraction will cause serious risk. When the margin calls go out and the market gets flooded with liquidating assets I imagine we will see a herd rushing the door. The problem is a rushing herd cannot get through a door so we will see paralysis from frozen markets and low liquidity from nervous creditors. The ...

Full article: http://peakoil.com/publicpolicy/crash-course-chapter-15-d...

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