The “Unimaginable” and the “Unthinkable is now happening right before our eyes. There is literally a “Deathwatch” of America’s largest and iconic companies.
GM IS ON ITS DEATH BED: Earlier this year in my 2009 economic forecast I said that technically a couple of the Automobile companies were already bankrupt. Well just yesterday GM's own auditors revealed an unnamed "material weakness" in the company's accounting -- and warned that there's serious doubt the automaker will survive.
BANK OF AMERICA, CITIGROUP AND AIG ARE ON LIFE SUPPORT: Citigroup’s stock traded below $1.00 yesterday. The only reason that theses companies are still alive is because the “Government” has supported them with over $400 Billion dollars of taxpayer money.
And that still has not helped the companies from falling into a comatose state. As soon as dire realities force Washington to pull the plug, these giant institutions will be in bankruptcy.
GENERAL ELECTRIC HAS ENTERED THE INTENSIVE CARE UNIT: The rating agencies have already put the company on a negative outlook and they are considering slashing the company's credit rating -- a strong signal that the company may soon be fighting for its life.
The question becomes WHO’s Next?
This week Moody's slashed its outlook to negative for JPMorgan and Wells Fargo.
I believe that JPMorgan is the most troubling of all. And the reason is it is America's largest bank with a market value that's greater than Wells Fargo, Bank of America and Citigroup put together.
And their exposure to the current risky derivatives environment is in the $$$TRILLIONS!!!
The Bottom Line is America's four largest banks -- JPMorgan Chase, Citibank, Bank of America and Wells Fargo -- are ALL in trouble and are major threats to the country’s future!
Data is coming out everyday as to the trouble many other companies are facing. And FINALLY the Fed is only now admitting something's wrong after first predicting that the crisis was “contained” and "would end in 2008".
I could go on with the troubling news, but I wont.
What I really want to stress is that there is a concerted effort to place the crumbling of these institutions and the collapse of the stock market in the lap of President Barrack Obama.
These problems existed long before Obama was even on the scene. He is doing all he can to right the rudderless ship.
Will some of his policies exacerbate some of the problems? Perhaps…But what is he to do?
If he does nothing and the economy continues to slide He’ll be blamed!!
If he institutes policies that may cause pain in other areas…He’ll be blamed!!!
Talk about being stuck between a rock and hard place!!!
He’s done his job we have to work hard to qualify ourselves to help him in the long run with the NEW companies, the NEW industries, and the NEW Economy that’s coming whether we like it or not.
Bro. Bedford
'Conversations With Black Millionaire Entrepreneurs'
http://www.conversationswithblackmillionai...
Posted By: Bro Bedford
Friday, March 6th 2009 at 2:24PM
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