The financial markets are ready to take another dump Monday. As I see it there's no end in sight for this situation in the forseeable future. Why you might ask aren't things just going to hit a floor and start to go up? Easy. We as a nation are flat broke. Banks and investment houses have assets but looking at the other side of the balance sheets shows nothing but liabilities. And big ones at that. Housing prices continue to fall eating up equity. What is owed on homes far outweighs home values. So the assets of banks and investment houses are falling as well. It's a $500 trillion problem. Our GDP is around $9 to$11 trillion.
Now let me really scare you. Based on the fact the this nation is in debt at over $9 trillion dollars and an anual budget deficit of over $400 billion we're broke. A little information slipped out over the weekend. The FDIC is underfunded. That's right. They do not have enough money to cover more than a few dozen banks deposits if even that. So where's the money going to come from? They'll do what they did in the past borrow the money. And let me say that you can not borrow your way out of debt anymore than you can eat yourself skinny.
I'd say the Big collapse is coming shortly either October or if they can hold off and feed us some more lies, no later than January of next year.
As for unemployment expect another 50,000 just from the financial institutions alone. Then of course there's the airlines and the auto industry. Planning on buying a big ticket item anytime soon? I thought not. We're all in the same leaky boat and it's about time to tread water. Hope you remembered to put on your life vest.
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6 comments:
Holy shit. I confess I do not understand the financial market at all, but what you have said here is plainly disturbing. What is the average Jane like me supposed to do? I don't have huge assets - hell, I don't have any assets beyond my tools and a 1995 ford truck that almost gets 15 mpg. Nobody's gonna want to take that baby, trust me. Scary times, mister. Scary times indeed.
Actually Dawn you are in a good position. You really have nothing to loose. It's the ones who are half way through a mortgage and have big credit card debt who are going to suffer. I'll do another post on this later to show how to do things right.
The Liberal leftists all are running around telling us how bad things are, and of courwse blaming the current president. We have had a democratic controlled congress now for two years---what have they done for us? anything? I know they blocked the republicans from trying to get more drilling of American oil--why , because they say it will be years before any new oil will do any good----so they prefer to do nothing. Now we have a company that made bad investments pushing buy now pay later mortgages, and the leftists are trying to tell us the world is ending--(but have no fear the donks will come up with a plan for the government to bail them out, and add to the government buracracy,---its been two years now, when is the democratic congress gonna cut my taxes like obama promises??
One again Gary you are just stupid.
1. The information I got was from those in power. The republicans who were elected and appointed by this administration.
2. This has nothing to do with energy policy. That was determined by Cheney and the oil companies behind closed doors with no public input.
3. How about getting off your lazy ass and doing some actual reading or are you taking some medication that's fogging your brain.
4. Obama isn't in office yet so how could he do that.
5. You'd better keep your eye on the governator because I think he'll be raising your taxes soon.
Get a clue or you'll be erased.
The real issue that caused much of this mess was a deregulation fever that allowed banks, and especially non-banking financial entities to loan money they couldn't afford to lose. Lehman Bros and Freddie Mac didn't just happen.
Gary- we've had a Democratic Congress for 1.8 years with a bunch of obstructionist Republicans in the Senate. That after 6 years of GOP led-Congress and President who gave out the keys to the candy store. Oh, and ran wars that no one paid for. If we were going to fight a two-front war, we should have paid for it. Yes, I mean raising taxes or in the alternative, cut spending, but the GOP, when they were in charge, did neither.
PS. Things ARE bad and will get worse, and frankly, the systemic issues are so bad that being the next President, regardless of party, will be likely a pyrrhic victory.
I've saved and invested all my life. I've lived Below my means in order to do so. My friends? New cars. New houses. ME? save, save so I can invest, invest.
Now the time has come to reap the benefits. My friends have their new houses and new cars.....I have nothing. still.
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