It Has Started: Wall Street Is Preparing For A Doomsday Scenario

If you're simply looking at their public statements, Wall Streeters seem to be alarmed about the debt crisis, but don't appear to be sliding into panic mode.

Across the financial sector, many are preparing for a debt doomsday scenario, in which the U.S does in fact default, the New York Times reports.

Firms are "taking steps to reduce the risk of holding Treasury bonds or angling for ways to make profits from any possible upheaval."

It's clear hedge funds have changed gears and many are in heavy de-risking mode, with billion dollar firms like Moore Capital and Soros Fund Management moving their flagships into majority cash.

This was a tactic implemented by a ton of hedge funds when the financial world imploded in 2008 -- so it's a very big statement on how bad they think things may get.

While "hedge funds are stockpiling cash so they can buy up US debt if other investors flee," banks are looking hard at their treasury holdings and mutual funds "are working on presentations to persuade their boards that they can hold the bonds even if the government debt is downgraded," the NYT reported.

One of the worst possibilities that people in the financial industry... have been discussing is that scores of insurance companies, pension funds and mutual funds might be forced to dump their Treasury holdings.

But the problem with trying to prepare for default in a meaningful and specific way is best summed up by the CFO of Wells Fargo (which is stockpiling cash just in the case): "Because nobody knows what is going to happen, nobody knows how to prepare."

I think that we are at the very least in for a collapse much like that of Argentina’s ( http://www.youtube.com/watch?v=7yerKMQc7-w&feature=grec_index), but as a armed society with a very large entitlement minded population our collapse will be much more violent and I see many many small business wiped out by flash mob looting, and large scale violence (look at what happened just this past Memorial Day and 4th of July weekends)we are seeing these mobs grow bolder and bolder like:

Chicago’s CBS 2’s Jim Williams reports, the problem of mob attacks downtown is much bigger than the weekend beatings, according to beat cops who wanted to remain anonymous.”

And it’s not just Chicago, but Washington DC, Las Vegas, St Paul, Philadelphia and on most major big ‘Blue’ cities are increasingly reporting such flash mobs and gang muggings. Look what happened just this past weekend in Peoria, Il:

http://peoriachronicle.com/2011/06/25/peorians-living-in-fear/

Teenage Flash Mob Robberies on the Rise:

http://www.foxnews.com/us/2011/06/18/top-five-most-brazen-flash-mob-robberies/

Rash of violence isn’t flash mobs, it’s wilding

http://www.suntimes.com/news/roeper/5826624-417/rash-of-violence-isnt-flash-mobs-its-wilding.html

Teens in a mob assault and rob Center City patrons

http://www.philly.com/philly/news/20110629_Teens_in_a_mob_assault_and_rob_Center_City_patrons.html

Milwaukee Police Go Barney Fife On Mob Attacks

http://www.620wtmj.com/blogs/jeffwagner/125017329.html

Milwaukee Mob Victim Recalls Beating ... ‘Oh, White Girl Bleeds a Lot’

http://nation.foxnews.com/flash-mob-robberies/2011/07/06/oh-white-girl-bleeds-lot-race-mob-attack-rocks-milwaukee

I see what I call ‘Pocket Pogroms’ taking place in many big ‘Blue’ cities and if you aren’t a ‘0bamamite yute’ or one of ‘Holder’s People’ it’s going to get Reginald Denny bad for you very quickly.

For those who are just starting or are old hands at prepping you may find my Preparedness Manual helpfull. You can download it at:

http://www.tomeaker.com/kart/preparedness1i.pdf

For those of you who haven’t started already it’s time to prepare almost past time maybe. You needed to be stocking up on food guns, ammo, basic household supplies like soap, papergoods, cleaning supplies, good sturdy clothes including extra socks, underwear and extra shoes and boots, a extra couple changes of oil and filters for your car, tools, things you buy everyday start buying two and put one up.

As the LDS say “When the emergency is upon us the time for preparedness has past.”

Or as the bible says: A prudent man sees danger and takes refuge, but the simple keep going and suffer for it.
NIV Proverbs 22:3

“There is no greater disaster than to underestimate danger.

Underestimation can be fatal.”

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