As the leaders of the mortgage bubble continue to hit the wall, the importance of repositioning your assets into the “real” economy and out of a “bubble” economy is urgent.
In Frantic Day, Wall Street Banks Teeter
By Andrew Ross Sorkin & Jenny Anderson – New York Times (14 Sep 2008)
ISDA Statement on Lehman Brothers Bankruptcy Trades: Full Text
By Scott Lanman – Bloomberg.com (14 Sep 2008)
Rush Is On to Prevent A.I.G. From Failing
By Gretchen Morgenson & Mary Williams Walsh – New York Times (14 Sep 2008)
A.I.G. Seeks $40 Billion in Fed Aid to Survive
By Andrew Ross Sorkin et al – New York Times (14 Sep 2008)
World Banks Planning $50 Billion Emergency Loan Pool
By Joe Bel Bruno & Martin Crutsinger – Associated Press (14 Sep 2008)
Fed Lowers Standards for Collateral From Primary Dealers
Federal Reserve Board Press Release (14 Sep 2008)
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Don’t be so quick at discounting the US Market, our Economy and the financial outlook for this country. You may presently be querulous but there is good news coming. We are in the middle of a money war and yesterday the world markets were served a left hook to the jaw. Starting around 1995 countries such as India, China and Russia tied the value of there currency to the value of the US dollar. Out American dollar became the “Gold Standard” for the world. As the dollar increased in value along with our stock market the corresponding currency increased in value as well. What didn’t change for our foreign competitors was the cost to building widgets. As our incomes increased in the US wages stayed the same overseas. As a result, products, from other countries, became cheaper to produce and less expensive to purchase. Then 911 hit our country, we had a new president, the change in command did not go smoothly and then the stock market crashed. But our dollar didn’t! As a result, our net worth dropped like a rock. Here we were fighting for our safety from terrorist and our economic lives. The dollar was overvalued and our companies that form the bedrock for our capitalist nation lost their net worth. Jobs flew overseas, manufacturing went to China, oil production was just coming on-line in Russia and India walked away with our tech jobs. We still made good products but the cost was so high that even our own citizens purchased imports over US made products. Car exports dropped, Computer exports dropped, steel exports increased. Remember when Wal-Mart switched to buying imports? Remember when they had to change the tags in the clothing from “made in the USA”? Our Nation was hurt. We were on the rocks and begged other nations to not tie the value of their currency to ours and to let theirs float in the market. We knew this was the only way to bring our economy back as quickly as we could. They laughed at us. For years we have been fighting to break the Yaun, Rupee and Ruble ties to the dollar. Delegation after delegation made visits and explained what was happening to our nation. They did not care. We were capitalist and the socialist’s were going to beat us at our own game. Guess what? The game ain’t over. While the world slept our Fed continued to pump money into the economy, they cut the cost to borrow, they talked our “Fundamental Economic Strength” up. The dollar kept dropping in value, day after day, month after month, year after year. Programs were developed to make it easier for Americans to buy homes. Our national home ownership average was less than 62% in 1999. By 2007 it was over 70%. The increase was made up of people who should never have bought a home. They were not credit worthy. Home ownership climbed to record levels. This is who are being foreclosed on today! These high risk loans were marketed through federal institutions, that are not FDIC insured, like Fannie Mae and Freddie Mac. Guess who bought them? Remember people bitching about foreigners buying all our treasury bills and debt? Remember when our Democratic politicians made an issue about China owning so much property? Have you noticed they don’t say a thing now? All the money the Chinese, Indian and Russians made during this fabulous time in their country’s went where? That’s right! They bought our DEBT! They invested it here. In low risk mortgage debts. Our money was and is safe. Their leaders were screwing their citizens and amassing a fortune over here. When all those mortgages went bad who was holding the paper? The houses are still here. Can’t very well go home to Moscow with a split-foyer from Jersey. Notice that the banks that have failed were banks that are not insured by FDIC? That’s right! Who do you think was holding the tab for those? Oil has now dropped to $93.00. The tankers are full, the storage tanks are full and refineries can’t handle any more oil. Ships full of oil are sitting at docks around the world but they can’t be emptied because there is no place for the oil to go. The world can’t use all the oil being produced. The price of goods made overseas have double in the last two years. The S&P has dropped 8.7% since January but the Indians are down -34%, the Chinese -60%, the Russians -40% since May and tack another 17% yesterday on that. We have them by the short hairs. Collateral damage which will affect Venezuela and Iran the most. These two fools have based their whole economy on $150 oil, made agreements, signed treaties and shook hands. So, when the dust settles, our homes will have lost some of it’s equity, FDIC insured banks will hold their depositors money for the taking and manufacturing is coming back. Oil will settle to it’s true development value of around $70 a barrel and where will the worlds money flow to? I hope it all comes home.
Reading the comment thread that follows key articles published on the website commondreams.org, I find my mind sifting through all the opinions, some “professional” and some not. There are so many variables set loose that even experts cannot give solid opinions these days. I will buy Catherine’s tape as I know she does an indepth analysis. As a professional astrologer, one thing that deeply troubles me is noting (based on the inviolate timeless equation, “As above, so below”) that one of the key configurations that occured during the Great Depression (Saturn square Pluto) is returning. It begins in late October 2009 and holds well into summer 2010. At the least it means serious shortages. Panic, and the psychological loss of faith in the US monetary system, can trigger events; and the evisceration of those liberties granted by the Constitution & Bill of Rights, now limit protest, vaguely equate dissent with “terrorism,” and via “eminent domain” have writ themselves the “right” to seize assets. The checks and balances have broken down, along with transparency in this so-called representative democracy. Tragically, both presidential candidates have ties to those in high finance, or should I say high finesse. My father left me a nice stock portfolio and I’d like to think I can preserve some of it… as the way things are going, social security is next on the auction block of these egregious trespassers who have through a bloodless coup taken over the U.S.A.
“Nothing Real can be Threatened. Nothing unreal exists.” Nice quote, Catherine. How specifically does it apply to the nation’s current financial crisis? What’s ‘real’, and what’s ‘unreal’?
OY
Catherine, I am most impressed by your story and all you have gone through to spread the truth. But how has it played out? What of all the legal and other harassment you were facing? Did it get resolved?
Thanks for all your good work.
Catherine,hm,could you tell me how the Lehman Brothers go bankrupt? I am a student.Until now,i am confused the reason.
What do I think to the Royal bank of scotland? RBS boss Fred goodwin should be stripped of his pension. If they pay him a profit related percentage he will get minus figures. Taking away his pension is the best option.