World Financial Meltdown?

by Ernie Fitzpatrick - Date: 2008-09-17 - Word Count: 366 Share This!

Maybe Houston is a picture of what's happening in the world. I am talking about Houston after hurricane Ike. Just how far does our government think they can go pretending to keep things going well? How many corporations can our government bail out? At what point does our government run out of making money or do we just keep printing it until we have to change the currency or devalue it.  

Houston- World, We Have A Problem!

So, our government (it is OURS isn't it?) has just bought an 80% (actually 79.9%) in AIG.

We the taxpayers have just invested $85,000,000,000.00 in a bankrupt corporation. That was after we rescued (you and I) Fannie Mae and Freddie Mac the week before. But we decided we couldn't or didn't ant to buy Lehman Brothers. I mean after all there is a point- and we may have just reached that point.

Remember the FDIC that INSURES your funds?

The Federal Deposit Insurance Corp., whose insurance fund has slipped below the minimum target level set by Congress, could be forced to tap tax dollars through a Treasury Department loan if Washington Mutual Inc., the nation's largest thrift, or another struggling rival fails, economists and industry analysts said Tuesday.

Forget about trying to get a loan from a bank!  :-(

Eleven federally insured banks and thrifts have failed this year, including Pasadena, Calif.-based IndyMac Bank, by far the largest shut down by regulators. Additional failures of large banks or savings and loans companies seem likely, and that could overwhelm the FDIC's insurance fund, said Brian Bethune, U.S. economist at consulting firm Global Insight.

Then there's Russia!

Russian markets stopped trading for a second day after emergency funding measures by the government failed to halt the biggest stock rout since the country's debt default and currency devaluation a decade ago. The government yesterday injected $20 billion into the interbank lending market via central bank and Finance Ministry auctions in a bid to contain soaring borrowing rates as credit dried up in the wake of the Lehman Brothers Holdings Inc. bankruptcy. The one-day MosPrime overnight rate, a gauge for monitoring liquidity demand, lept 25 basis points to a record 11.08 percent today.

How LOW can this thing go? Don't ask, don't tell!

Related Tags: fannie mae, freddie mac, fdic, hurricane ike, aig, russian stock market, federal deposit insurance corp, world financial meltdown

As a spiritual-futurist, I interpret current events in light of possible macro-universal forces at play leading up to 2012, but not limited to it.

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