The Government is Broke Folks. It’s Going to be a Disaster , a Greater Depression – the Politicians and Bankers – the Interference in the Market and Unemployment. The Criminals are Rewarded – The Sheep are Scared – Socialist Banking System is taking over a free economy.
Full Blown Depression – Phony Borrow and Spend economy – more Dire Forecast Hyper–Inflation – Savings and Wages Debased – Bad Mortgages sold to the Government – Trillions of Dollars in new liquidity. Savings is the root of a former Capitalist system.
The Financial Crisis has Wiped Out $6.7 TRILLION already since the S&P 500 High of Oct 2007. The Feeling is Much More is yet to come especially after Wednesdays announcement of NO BAILOUT for GM & Ford.
The Selling was so Intense on the NYSE that there were 2943 DECLINERS while only 158 companies traded positively. At the Closing Bell the Damage was DJIA Down 427 points to Free Fall Below the 8000 Barrier Finishing at 7997.28 on the Day.
Banks and Financials are still struggling. CITIGROUP is Laying Off more than 52,000 and the stock [C] has fallen sharply to a formerly unthinkable $6.48 a share. No Companys share price is Safe in this Financial Holocaust. How the Mighty Have Fallen.
On Wall Street and in Washington, there is increasing expectation that U.S. taxpayers will either take the bad assets off the hands of financial institutions so they can raise capital, or put taxpayer capital into the companies, as the Treasury has agreed to do with mortgage giants Fannie Mae and Freddie Mac. As always the Middle Class Taxpayers are the ones who Lose. The Rich Do Get Richer and the Poor Do Get Poorer.
When you have a big loss in the marketplace, there are only three people that can take the loss [1] the bondholders, [2] the shareholders and [3] the government TAXPAYERS
The latest financial crisis is an area called CDS, credit default swaps, which are private contracts that let firms trade bets on whether a borrower is going to default. When a default occurs, one party pays off the other. The value of the swaps rise and fall according to the risk that a company won’t be able to honor its obligations. Firms use these instruments both as insurance to hedge their exposures to risk and to wager on the health of other companies. There are now credit default swaps on more than $62 trillion in debt, up from about $144 billion a decade ago.
One of the big new players in the swaps game was AIG, the world’s largest insurer and a major seller of credit-default swaps to financial institutions and companies. When the credit markets were booming, many firms bought these instruments from AIG, believing the insurance giant’s strong credit ratings and large balance sheet could provide a shield against bond and loan defaults. AIG believed the risk of default was low on many securities it insured.
The Biggest Bailout in History. $10,000 for every Man Woman & Child on Planet Earth. Thanks Federal Reserve, a private bank chartered by the U.S. government and UN-Constitutional. Do Your Own Research.
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