U.S. May Be on Brink of Financial Crisis

[jeff of pa]

2 months to go

Last week brought terrible financial news. Several major stock brokerages (Merrill Lynch, Goldman Sachs, Lehman Brothers) and insurance companies (Ambac and MBIA) saw their credit ratings drop. Two of the nation's largest banks, Bank of America and J.P. Morgan Chase, had negative connotations added to their credit rating.

Then there were the employment figures. On Thursday, it was reported that initial unemployment benefit applications in the previous week had dropped slightly from the week before. Well, of course, they were, since unemployment offices were closed on Memorial Day! To a whole lot less fanfare, it was also reported that the number of people receiving unemployment benefits was at a multi-year high. On Thursday, the general prediction for Friday's monthly unemployment figure was a rise from 5 percent to 5.1 percent It came in at a disastrous 5.5 percent.

Virtually ignored by the American media was the statement by the Israeli Transportation Minister late last week that Israel would not sit idly much longer if Iran did not abandon its efforts to develop nuclear weapons. The statement was the closest yet of the possible beginning of a war with Iran that would inevitably include the United States. Gold prices soared Friday on this news, yet the American public is largely uninformed about this.

http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=4737

 

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[rmptr]

There's quite a bit of talk about derivatives and credit default swaps.
NOT that I understand them, but the numbers are VERY big.

Also, I read quite a while back that there was to be another peak in the number of scheduled ARM resets to occur within this time period which will provoke a larger growth in foreclosures.

Those poor folks in Iowa! That's a LOT of water, Boss!
I'm wondering how much of the necessary repair work will get done, and when?

The tax base will certainly drop and it will be harder to fund cleanup.
It could look like Escape from LA for a long time.

The Big Easy is still a mess...

But SOMEONE made a lot of money selling trailers to FEMA!

Best,
rmptr

 

[MD Dog]

All we really needed was a Katrina like event to push us over the edge. Will the midwest flooding and tornados be that event ? Stay Tuned, and pray for those poor poor people.

 

[jeff of pa]

all we need is a mention of a Hurricane heading towards
the Gulf to give oil and gas an excuse to raise prices again
and everthing else will follow :P

 

[arkhunter]

much has been said on this thread...in very few words.......take care folks