Current Situation
I just spent several hours checking the financial websites I read periodically, the news is not good to say the least.
Gerald Celente, director of the Trends Research Institute is predicting a financial Panic (his exact words) in 2008. He sees the dollar in Free Fall , gold over 2000.00 per ounce, etc. He corectly predicted the subprime mess and the dollars decline over one year before both started happening, and also predicted golds current rise last May.
His gloomy forcasts is this "We will shortly see economic times like no living person has seen since the great depression"(presumably because all those folks who lived through that are dead!)
In the next 9 months, 2 million homeowners with over 600 billion dollars in Adjustable rate mortgages will be getting big increases, if even 20% of them default, that will be a big hit.
Thomas Lawler, the former chief economist at Fannie Mae, says and I quote exactly "We all know that more hits are coming from the subprime loans but don't know how it will happen or how to stop it!"
Well, if he and his buddies don't know, who should?
The big Banks globally are bleeding red ink, 500 billion in potential losses altogether, but even more scary is the fact that Pension funds and mutual funds have invested in all these bad mortgage paper also, putting everyone who has a pension or is invested in a mutual fund in jeopardy also. And most of them don't even know it.
Robert Shiller, professor at Yale and renouned expert in the real estate market says we could experience a drop in house prices of 30% before it's all over, just like between 1925 and 1930.
This has already happened in one area of California, Antioch in the East Bay area. Whole streets have abandoned houses from foreclosure, creating safety hazards for those still living next to them, squatters and drug dealers, etc. The owners are stripping them of everything before leaving them, even the wiring and copper plumbing.
So what are the rest of us to do, buy a shotgun and load up on canned food?
Gerald Celente, director of the Trends Research Institute is predicting a financial Panic (his exact words) in 2008. He sees the dollar in Free Fall , gold over 2000.00 per ounce, etc. He corectly predicted the subprime mess and the dollars decline over one year before both started happening, and also predicted golds current rise last May.
His gloomy forcasts is this "We will shortly see economic times like no living person has seen since the great depression"(presumably because all those folks who lived through that are dead!)
In the next 9 months, 2 million homeowners with over 600 billion dollars in Adjustable rate mortgages will be getting big increases, if even 20% of them default, that will be a big hit.
Thomas Lawler, the former chief economist at Fannie Mae, says and I quote exactly "We all know that more hits are coming from the subprime loans but don't know how it will happen or how to stop it!"
Well, if he and his buddies don't know, who should?
The big Banks globally are bleeding red ink, 500 billion in potential losses altogether, but even more scary is the fact that Pension funds and mutual funds have invested in all these bad mortgage paper also, putting everyone who has a pension or is invested in a mutual fund in jeopardy also. And most of them don't even know it.
Robert Shiller, professor at Yale and renouned expert in the real estate market says we could experience a drop in house prices of 30% before it's all over, just like between 1925 and 1930.
This has already happened in one area of California, Antioch in the East Bay area. Whole streets have abandoned houses from foreclosure, creating safety hazards for those still living next to them, squatters and drug dealers, etc. The owners are stripping them of everything before leaving them, even the wiring and copper plumbing.
So what are the rest of us to do, buy a shotgun and load up on canned food?
