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.