"There may be a recession in stock prices, but not anything in the nature of a crash"
- Irving Fisher, leading U.S. economist , New York Times, Sept. 5, 1929

We will face tremendous challenges in the future: the credit crisis, a credit crunch, the decline of the dollar, the cdo (collateralized debt obligat6ions) crisis, the national debt, the trade imbalance, the housing bubble deflation, medicare costs, social security costs, healthcare costs, global peak oil, climate change, an aging population, competition from rising economies , a scary world economic system,

Need to Read Financial Articles below

The Credit Crisis Could Be Just Beginning

Massive levels of debt underlying the world economic system are about to unwind in a profound and persistent way

Misery may be just beginning, warns International Money Fund

The consequences of this episode should not be underestimated and the adjustment process is likely to be protracted. Credit conditions may not normalize soon, and some of the practices that have developed in the structured credit markets will have to change

In its latest update of its economic forecasts next month, the IMF is expected to slash its forecast for US economic growth next year – perhaps to as low as 1pc-1.5pc.

Image from: Gold-Eagle.com

It's All Downhill From Here, Folks 2/8/08

FDIC Chairman Shiela Bair warned that “as of Sept. 30, there were 65 institutions with assets of $18.5 billion on its list of "problem" institutions;” although she wouldn't give names.

So, what does it all mean? It means there's going to be an unprecedented wave of bank closures in the US and that people who want to hold on to their life savings are going have to be extra vigilant as the situation continues to deteriorate. And it is deteriorating very quickly

US's triple-A credit rating 'under threat'

Last year, David Walker, comptroller general of the US, caused controversy when he compared America's current situation with the dying days of the Roman empire and warned the country was on "a burning platform" of unsustainable policies.

Medicare and Medicaid spending, which has risen sharply over the past few decades and now accounts for about 45 per cent of total federal spending, up from about 25 per cent in 1975, has long been a source of concern.

Last month, Peter Orszag, director of the Congressional Budget Office, which advises Congress on the federal budget, said the issue was "the central fiscal challenge" facing the US

Mortgage Meltdown

The ticking time bomb in the U.S. banking system is not resetting subprime mortgage rates. The real problem is the contractual ability of investors in mortgage bonds to require banks to buy back the loans at face value if there was fraud in the origination process.

Panic of 2008
Forecast: U.S. dollar could plunge 90 pct

Sub-prime black hole is getting scarier'

Blackstone's president warned that the sub-prime crisis on Wall Street was getting "deeper, darker and scarier" yesterday as the US private equity firm posted a loss for the third quarter, hit by a fall in real-estate revenues and charges related to its initial public offering.

Talk of Worst Recession Since the 1930s 11-12-08

Noting that consumption is already slowing, Mr. Melcher figures sharply rising unemployment is inevitable. Another of his worries is that central banks around the globe, America's included, are debasing their currencies, which is setting the stage for a new round of higher inflation. Our bear figures the next six to 12 months will be awful for investors as the market goes down "pretty substantially." His frightening outlook calls for an additional 20% to 30% decline from current levels. A drop of that magnitude would put the Dow down in a range of roughly 9,100 to 10,400.

Living Paycheck to Paycheck Gets Harder 10-19-07

Across the nation, Americans are increasingly unable to stretch their dollars to the next payday as they juggle higher rent, food and energy bills. It's starting to affect middle-income working families as well as the poor, and has reached the point of affecting day-to-day calculations of merchants like Wal-Mart Stores Inc. (WMT) (WMT), 7-Eleven Inc. and Family Dollar Stores Inc. (FDO) (FDO)

Food pantries, which distribute foodstuffs to the needy, are reporting severe shortages and reduced government funding at the very time that they are seeing a surge of new people seeking their help.

While economists debate whether the country is headed for a recession, some say the financial stress is already the worst since the last downturn at the start of this decade

Weak dollar prompts record foreign buyouts of U.S. companies

We could be looking at the world's largest tag sale if we continue to see declines in the dollar," said Donald Klepper-Smith, chief economist at DataCore Partners

Learn from the fall of Rome, US warned

The US government is on a ‘burning platform’ of unsustainable policies and practices with fiscal deficits, chronic healthcare underfunding, immigration and overseas military commitments threatening a crisis if action is not taken soon, the country’s top government inspector has warned.

David Walker, comptroller general of the US, issued the unusually downbeat assessment of his country’s future in a report that lays out what he called “chilling long-term simulations”

Bankers Fear World Economic Meltdown

There has been a profound and fundamental change in the world economy over the past decade. The very triumph of financial liberalization and deregulation, one of the keystones of the “Washington consensus” that the U.S. government, International Monetary Fund (IMF), and World Bank have persistently and successfully attempted over the past decades to implement, have also produced a deepening crisis that its advocates scarcely expected.

The global financial structure is today far less transparent than ever. There are many fewer reporting demands imposed on those who operate in it. Financial adventurers are constantly creating new “products” that defy both nation-states and international banks. The IMF’s managing director, Rodrigo de Rato, at the end of May 2006 deplored these new risks – risks that the weakness of the U.S. dollar and its mounting trade deficits have magnified greatly

Twilight of the Gods

"Much has been written about panics and mania…. But one thing is certain; that at particular times a great deal of stupid people have a great deal of stupid money. At intervals… the money of these people — the blind capital, as we call it, of the country — is particularly large and craving: it seeks for someone to devour it and there is a 'plethora'; it finds someone and there is a 'speculation'; it is devoured and there is a panic"

– Walter Bagehot, "Essay on Edward Gibbon"

Final Stop: Soup Kitchen U.S.A

The days of the dollar as the world’s “reserve currency” may be drawing to a close. In August, foreign central banks and governments dumped a whopping 3.8 per cent of their holdings of US debt. Rising unemployment and the ongoing housing slump have triggered fears of a recession sending wary foreign investors running for the exits. China, Japan and Taiwan have been leading the sell off which has caused the steepest decline since 1992.

To some extent, the losses have been concealed by the up-tick in Treasuries sales to US investors who’ve been fleeing the money markets in droves. Investors have been trying to avoid the fallout from money funds that have been contaminated by mortgage-backed assets. Naturally, they bought US government bonds which are considered a safe bet. But that doesn’t change the fact that the dollar’s foundation is steadily eroding and that foreign support for the dollar is vanishing. US bonds are no longer regarded as a “safe haven”. . . .

. . . The Bush Team was warned repeatedly---by the BIS, the World Bank, the IMF and the European Central Bank ECB---that their policies were “unsustainable” and would end in an economic meltdown. But they brushed aside the warnings with the same casual indifference as they did the critics of the war in Iraq

American Economy: R.I.P

The US economy continues its slow death before our eyes, but economists, policymakers, and most of the public are blind to the tottering fabled land of opportunity.

In August jobs in goods-producing industries declined by 64,000. The US economy lost 4,000 jobs overall. The private sector created a mere 24,000 jobs, all of which could be attributed to the 24,100 new jobs for waitresses and bartenders. The government sector lost 28,000 jobs.

In the 21st century the US economy has ceased to create jobs in export industries and in industries that compete with imports. US job growth has been confined to domestic services, principally to food services and drinking places (waitresses and bartenders), private education and health services (ambulatory health care and hospital orderlies), and construction (which now has tanked). The lack of job growth in higher productivity, higher paid occupations associated with the American middle and upper middle classes will eventually kill the US consumer market

A debt culture gone awry

The U.S. economy, once the envy of the world, is now viewed across the globe with suspicion. America has become shackled by an immovable mountain of debt that endangers its prosperity and threatens to bring the rest of the world economy crashing down with it.

The ongoing sub-prime mortgage crisis, a result of irresponsible lending policies designed to generate commissions for unscrupulous brokers, presages far deep[ Home page ] [ Angel Art ] [ Angel Links ] [ Angel of Comfort ] [ Angel of Prosperity ] [ Angel of America ] [ Angel of the Future ] [ Angels Payment Page ] [ Angel Quotes ]er problems in a U.S. economy that is beginning to resemble a giant smoke-and-mirrors Ponzi scheme. And this has not been lost on the rest of the world

Are we headed for another Great Depression

In the case of empires, a way to gage solvency is, how big is their own reserves compared to the size of these same currency reserves held by potentially hostile rivals? In the case of the USA, we send dollars out as fast as we can print them

And if we think of these funds as boats, then China has Noah's Ark, Japan has an aircraft carrier, Europe has a holiday cruise liner, Russia has a very fancy yacht and the USA has a rowboat made out of an old bathtub. That is leaking.

China has $1.3 trillion in its reserves and is therefore, King of the Mountain. Japan has $900 billion and is no longer holding new currency so all the red ink in trade is no longer staying away, it is floating back home to here, as inflation. Europe has about $600 billion and Russia, $330 billion. The USA has only $66 billion and the numbers released today by the Federal Reserve shows that number is DROPPING. Yikes

Dow5000.com

Dow Jones at 5,000 within 5 years? (October 3, 2012) Will history repeat itself? It's certainly a possibility . Get ready for recession if we are lucky, another great depression if we are not

"We will not have any more crashes in our time"
- John Maynard Keynes in 1927

Need to Read Financial Articles below

The Credit Crisis Could Be Just Beginning

Massive levels of debt underlying the world economic system are about to unwind in a profound and persistent way

Misery may be just beginning, warns International Money Fund

The consequences of this episode should not be underestimated and the adjustment process is likely to be protracted. Credit conditions may not normalize soon, and some of the practices that have developed in the structured credit markets will have to change

Learn from the fall of Rome, US warned

Bankers Fear World Economic Meltdown

Twilight of the Gods

Final Stop: Soup Kitchen U.S.A

American Economy: R.I.P

A debt culture gone awry

Are we headed for another Great Depression

In the case of empires, a way to gage solvency is, how big is their own reserves compared to the size of these same currency reserves held by potentially hostile rivals? In the case of the USA, we send dollars out as fast as we can print them

The Impending Global Liquidity Crisis 06/04/07

The Cash Cows of Personal Debt 12/15/06
The Credit Card Industry and Predatory Capitalism

An Outcry Rises as Debt Collectors Play Rough 07/05/06

Dow5000.com

Dow Jones at 5,000 within 5 years? (October 3, 2012) Will history repeat itself? It's certainly a possibility . Get ready for recession if we are lucky, another great depression if we are not

"We will not have any more crashes in our time" - John Maynard Keynes in 1927

Need to Read Financial Articles below

Massive levels of debt underlying the world economic system are about to unwind in a profound and persistent way

The consequences of this episode should not be underestimated and the adjustment process is likely to be protracted. Credit conditions may not normalize soon, and some of the practices that have developed in the structured credit markets will have to change

In the case of empires, a way to gage solvency is, how big is their own reserves compared to the size of these same currency reserves held by potentially hostile rivals? In the case of the USA, we send dollars out as fast as we can print them

The Impending Global Liquidity Crisis 06/04/07

The Cash Cows of Personal Debt 12/15/06 The Credit Card Industry and Predatory Capitalism

An Outcry Rises as Debt Collectors Play Rough 07/05/06

"We will not have any more crashes in our time"
- John Maynard Keynes in 1927

The Cash Cows of Personal Debt 12/15/06
The Credit Card Industry and Predatory Capitalism