* Credit market deep freeze: A virtual shutdown in all debt markets except U.S. Treasuries. An avalanche of selling — and virtually no buyers — for corporate bonds, commercial paper, asset-backed securities, municipal bonds and all forms of bank loans.
* Government bond collapse: A steep decline in the price of medium-and long-term government securities, as the U.S. Treasury bids aggressively for scarce funds to finance a ballooning budget deficit.
Shocking? Perhaps. Avoidable? No.
Ping!
However! 60% of those polled say that everything is swell now that Obama is in the White House. LOL!
Whoa!
Does anyone know if this guy has credibility??
“George Soros said the financial system has effectively disintegrated, with the turbulence more severe than during the Great Depression and with the decline comparable to the fall of the Soviet Union, while …”
The guy quotes Soros as an expert rather than a prime mover behind this.
Theoretically speaking, and I am speaking theoretically here, what would happen if we were all late on our mortgage payments next month?
In the 19th century, these things happened every 15 years or so - they were called PANICS.
Back then, people did not rely on the Gov’t and were much more independent, and of course, relied less on finance, etc... in their lives (indeed, in 1860’s half of all Americans were farmers).
Speculation and bad-debt eventually will, as if by force of nature, be expunged from the system.
“* Megabank failures: Bankruptcies or nationalization not only of Citigroup and Bank of America, but also JPMorgan Chase and HSBC. (See my January issue, “Megabanks Could Fail Despite Federal Aid.””
How does the Fed nationalize the US division of a foreign bank (HSBC, N.A.)? I assume he is talking about the US division and not the London based whole enchilada.
Or lower--I say to 3000. This stinkulus is doing nothing. It is time to put our financial system up on the rack and do some major rebuilding.
bttt
Batten down the hatches!
Avoidable? Yes.
If Obama hadn’t signed Porkulus, if he would extend and improve on Bush’s tax cuts, if he would deregulate the financial markets and remove the onerous regulations that are causing the crisis.
Never happen? Yes.