Today's Historic Panic of 2008
The USA gobbles up two-thirds of the world’s credit
each year with no conceivable way of paying it back.
That won’t last much longer!
Reader please watch the important videos at the end of
this text to get a complete picture of the info presented here.
The “full faith and credit” of theStumble It!
is plunging world wide.
Increasing Market Jitters In World Markets
Desperate Move To Defend the DollarIn a desperate move today to defend the dollar, the Federal Reserve has cut American interest rates by 3/4 of 1%. The credit bubble is fully bursting, as values in the home market are further depressed, driving down even more the value of homes across the United States.
Largest Emergency Cut In 20 Years
.75% Emergency Fed Rate Cut
The mountain of collateralized debt created by Wall Street – including mortgage-backed securities, asset-backed securities, collateralized debt obligations, or related derivatives – are a small part of a much broader derivatives market that may now amount to $415 trillion according to the *Bank for International Settlements.
If there’s a break in the liquidity-flows to our stock market---stocks will crash, unemployment will soar, and we’ll be pulled into a deflationary down spin.
Today's Market reactions
(What American Investors Are Saying ...)
1. The subprime mortgage situation and high oil prices have ravaged the pocketbooks of all Americans. Greed and loose lending practices have contributed to this debacle. The slow response by the Federal Reserve has accentuated all, to the ultimate dilemma we now face.
2. I have money in a CD which has horrified my financial planner for the past two years. In July I converted my retirement funds from stock mutual funds to a money market fund in the same family. Now I'm getting the feeling that the Fed is trying to force my hand to put my cash back into play somewhere. Where is the relief for responsible spenders and savers?
3. I will not be able to return next year unless the market rebounds. I have lost enough from my personal portfolio to have funded my education two times over
4. I was nibbling at the financials because I thought they had put in a bottom, now I find the financials, I nibbled at, are nibbling at my bottom.
5. Why isn't THE REAL issue being addressed here? The so-called credit crunch is not the cause but a symptom of the distressed economy. The underlying cause of the meltdown is OIL. The world has no plan to use it wisely. It has fueled inflation and it depresses growth. Don't tell me oil prices will fall into a 'corrected' range with a fall in the markets. The smallest geopolitical event or the slightest pickup in business activity and it will be back above $100 again in a New York minute.
Lots of Confusion ... and ANGER ...
See more at
*CNBC Reader Emails
American Dollar Collapse
The inevitable collapse of the dollar
The Collapse Of The US Dollar
Alan Greenspan on: His Role in creating the Housing Bubble
Mortgage Problems Explained
The Truth About The Economy
What This Means
The US gobbles up two-thirds of the world’s credit each year with no conceivable way of paying it back. That won’t last much longer.
Central banks around the world are increasingly hesitant to accept our greenbacks and the Chinese are the only ones who are still buying our Treasuries. That’s mainly because it gives them power over political decision-making in Washington.
The truth is the Chinese are planning to send the US into receivership and take over as the world’s bank.
The “full faith and credit” of the U.S. Government is plunging, and the World is bailing out of Dollars.
What Could Now Happen Soon
A collapse in the heavily leveraged $1.4 trillion dollar unregulated hedge fund market and in the little-understood derivative market where leveraged exposure may be as high as $500 trillion.
Credit markets are now in the grips of a borrowing mania assisted by the Federal Reserve. Previously U.S. leveraged buyouts have pushed the sales of high-risk, high-yield debt paper up 70 percent to $1 trillion during the first half of this year.
When the credit bubble fully bursts, values in the home market may be further depressed, driving down even more the value of homes across the United States.
The mountain of collateralized debt created by Wall Street – including mortgage-backed securities, asset-backed securities, collateralized debt obligations, or related derivatives – are a small part of a much broader derivatives market that may now amount to $415 trillion. (Bank for International Settlements)
What This Means To You
This will lead to a lower U.S. standard of living,
rising unemployment with credit scarce, and a Global Economic Crash.