Big Lie of "Credit Crunch"

Market Says We Need LESS Credit but Government Continues Its Force-Feeding to Cram Debt Down Your Throat

The Wall Steet Journal's 12/11/08 "Freight Haulers Slam on the Brakes --Expecting the Weakest Year in Three Decades, Truck, Rail and Ocean Shipping Firms Are Cutting Back" (hat tip: CR):

“In a normal year, Gordon Trucking Inc. might replace 20% of its fleet of 1,500 big rigs with new trucks. But given the bleak outlook for the freight business, the Pacific, Wash., hauler doesn't intend to buy a single new truck next year.”

“’We're settling in for nuclear winter in the first half of 2009,’ says Steve Gordon, operating chief for the company, which hauls everything from paper products to electronics.”

"Some industry executives and analysts predict that 2009 could be the worst year for freight-transportation volume in three decades or more." (emphasis added)

Less VOLUME is less DEMAND.

• The companies do not NEED more trucks.
• The companies do not NEED more credit to buy trucks.

Business-investment increases typically signal economic recovery but the current investment reduction is healthy because demand for trucks is less.

• The problem of business overinvestment (overcapacity) is solved by less investment.
• The problem of overconsumption is solved by less consumption.

American consumers apparently do not need to replace their 30" TVs with 35" TVs after all.

Government/media propaganda about “lack” of credit is false.

We need LESS credit SUPPLY because we have LESS credit DEMAND--as in truck companies needing less credit because they need fewer trucks because they have less freight to move.

This is not rocket science.

We DO need transparency and price discovery, which is the exact solution that the government bailouts are designed to prevent.