The Financial Tsunami

Financial Sense Editorials ^ | July 15, 2008 | J.William Engdahl

[mick]

Last night I was reading Amity Shlaes book "The Forgotten Man". An outstanding history of the Great Depression that explains that the "forgotten man" in the title was not, as the left would have us believe, the poor man, but rather the man who "is never thought of....the man who works.....who prays, and who always pays" And it got me to thinking that what we may be witnessing...apropos of the article I just posted... could be the final dissolution and destruction of the last of the three great economic and political lies of the 20th century, Hitler's Nazism, Lenin's Communism, and Roosevelt's Lberaliam or mixed economy. If the author is correct we who love liberty and free enterprise must be careful not to allow the left to blame free markets for what is coming...it may just be the thrid act of the failure of any system that doesn't put the free individual first, First to produce and reap the rewards of his toil free from government manipulation and control. Anyway, that's how it looks from here.

[Guenevere]

Well said.
It's really coming isn't it...

[NeoCaveman]

If the author is correct we who love liberty and free enterprise must be careful not to allow the left to blame free markets for what is coming...it may just be the thrid act of the failure of any system that doesn't put the free individual first, First to produce and reap the rewards of his toil free from government manipulation and control. Anyway, that's how it looks from here.

Damn good point.

[ninonitti]

Move along there.....nothing happening......mission accomplished.

[Always Right]

Financial Sense is always over the top in their predictions. Things are not good, but we still haven’t even seen a month of negative growth. The economy is hanging on, although it is in serious condition and could slip into a recession. If oil prices continue to come down, I think we will see a surprising rebound in the economy.

[winodog]

I dont trust any numbers from gov.con.

[isrul]

IT can't be. Didn't you get the official GOP memo? Things aren't so bad.

[Mark was here]

Nationalize these two banks. It is Bull Shat that the public is on the hook for the losses, while the management sucks up all the rewards.

After Congress has complete control. Clean out the garbage, the sell it off to be totally private.

If not we will wind up with another bleeding Amtrak.

[Obadiah]

ping

[isrul]

You’re whistling past the graveyard. For what possible reason would oil prices “continue” to come down? Especially with winter coming?

[sarasota]

Yes, let’s encourage folks to withdraw all their funds from all sources so we can have a Big Crash.

[Always Right]

For what possible reason would oil prices “continue” to come down? Especially with winter coming?

Because the run up was way to fast, and was more of a bubble based on emotion, rather than based on fundamental supply and demand. Now that the feeding frenzy is over, look for oil to settle down around $100. If Congress would act on drilling and other initiatives, it could go lower, but that isn't gonna happen.

[Obadiah]

Bush’s fault, right?

[isrul]

Bush is a non factor. He certainly did nothing to avoid the situation.

[justa-hairyape]

For what possible reason would oil prices “continue” to come down? Especially with winter coming?

All that happened was the latest rise was halted and reversed. Oil has 3 week support point of $135 and 5 week support point of $131. If it falls down below $130, then something good is happening. And even if that happened, the Iran and Israel confrontation is right around the corner. It will take the blood, sweat and tears of the American Oil industry to even give us a chance to get through the rocky times ahead. Unfortunately the democratic process has saddled us with a bunch of crooked politician's standing in 'Big Oils' way. Coincidently the Autocratic Russians seem to be best poised to take advantage of the current state of affairs. Funny how that worked out.

[isrul]

OKay, so, given the fact that congress will do squat, what will burst the bubble? I’m not trying to be argumentative. I really want to know.

[agere_contra]

You know what? I agree.

FRE and FNM will go asymptotically to zero, but the Feds will defend the FM’s debts.

Many banks will go under. The dollar will take a pounding. There will be inflation. BUT America is becoming realistic about using its oil wealth, and this realism has had a knock-on effect on futures. Oil prices don’t have to plummet - they just have to remain level - and your economy will keep growing.

FWIW I say this as a disinterested foreign observer.

[isrul]

Is there any reason you believe it will fall below $130? Or perhaps even rise?

[Guenevere]

Oh sure....like I trust the official GOP memo as much as I trust the official GOP officials nowadays :^)

[isrul]

Not good times.