“There’s an unceasing wind that blows through this night
And there’s dust in my eyes, that blinds my sight
And silence that speaks so much louder than words,
Of promises broken”

~Pink Floyd

I hear a number of theories, regarding the future of our economy. On one side, we have the people who wear the rose colored glasses and live in a one season world. On the other side, we have the people who believe that society, as we know it, will break down completely; that it will be absolute chaos and anarchy.

I can’t say for sure that we won’t have a complete breakdown, but I do know that anyone who says the worst is over, or near over, has got their head way up their ass.

My research into the actual cause of the problems, indicates that the banks are holding about 20 trillion dollars worth of worthless debt-related derivative instruments. This was done, basically, in order for borrowers to get loans without having the collateral to back it up.

Once this practice took hold, huge amounts of debt were created, which lead to the housing bubble of the early 21st century. This debt is not likely to ever be repaid, as there is no practical way to come up with the 20 trillion dollars that would be necessary to unwind these positions. Read the rest of this entry »

This is an interesting conversation I had about the notion of a “depression,” with a friend of mine. Many of the thoughts that came to mind were inspired by a lecture by Michael Tsarion – 2012: The Future of Mankind.

Thursday, March 13, 2008

|insertnickhere|
4:04 so when do you think the depression will happen
4:05 granted its already starting to happen

Chris Case
4:05 welp… i think that the human race has been in the midst of a depression for over 10,000 years Read the rest of this entry »

Jim Sinclair | JSMineSet.com

Now the credit derivative implosion problem has worked its way into the commercial paper market which since last week has declined by $90 billion. The word is that the commercial paper market for all purposes is closed down, yet Professor Bernanke sleeps on. No one can say with a straight face that a shut down commercial paper market will fail to shut down the US Economy. It will.

The Dow was down 300 points until rumors of a secret meeting being held at the Fed made their rounds. When that one ran out of steam the next rumor was a major injection of cash was going to be made into Bear Stearns. That has to give you an idea what people think about Bear Stearns’s financial condition and therefore most other major investment banking firms with prime names. Read the rest of this entry »

Clyde Prestowitz recently warned that the United States may soon head into a crisis on the same proportion as the “Great Depression.”

Danger signs of global crisis

By HARDEV KAUR

Author and member of former President Ronald Reagan’s administration Clyde Prestowitz says the United States is “being completely irresponsible” with its growing budget deficit, which spells a crisis bigger than the Great Depression, unless it takes charge. HARDEV KAUR writes. “I AM less worried about Malaysia than the US,” Clyde Prestowitz, author of Three Billion New Capitalists: The Great Shift of Wealth and Power to the East said.

The US, the world’s greatest consumer, the world’s largest economy and the only driver of world economic growth, “was being completely irresponsible” and endangering the world economy. Read the rest of this entry »