"There are a lot of things to worry about now. For starters Fannie and Freddie Mac are on the verge of going to zero. According to Barclays Capital the two companies will have to raise $225 billion of short-term to debt over the next six weeks. Of course they won’t be able to do that in the private markets with crashing stock prices.
That means that the first government $100 billion plus bailout of Freddie and Fannie is right around the corner.
I don’t think the stock market or the bond market will take that too kindly,
because it will mean the government raising the white flag and announcing to the entire world that it will print any amount of money to bail out these two companies and with estimates for their losses to reach $500 billion to even a trillion that is a lot of money we are talking about.
Economists are also estimating another $500 billion to trillion dollars will be spent by the FDIC to cover bank failures. Put the two figures together and you are talking about the government having to add over one trillion dollars to the deficit in the next year as a result of the credit crisis.
That’s serious money printing. It means serious trouble for the economy and the stock market and most likely a huge explosion in gold prices once gold gets it footing."
I know its hard to accept but we really are on the verge of the next Great Depression in this country — massive debt liquidation, millions of homeowners kicked out or taxed out, state and local governments completely and totally bankrupt, the end of police, fire, and water services (or at VERY reduced service). This is going to be bad.
Whoever we elect will become a dictator, or we’ll simply dissolve as a nation. Choose wisely, grasshoppers…:>