In January of this year I posed the question Are Black People Prepared For The Coming Economic Collapse?
You can read that short article by clicking here:
http://gbigroup.net/article-recess-1-28-08... At the conclusion of the article I stated, “What is the first step Black People should take, you may ask. The first step is that we must become Aware that a Crisis exists.”
I believe that with all of the events that have occurred since then it should be clear that America is in an Economic Crisis.
There is a heated debate going on in Washington this very minute about the mother of all “Bailouts”, a $700 Billion rescue of the Banking System.
Just in case you haven’t heard, as the ‘Comedy Show’ in Washington was happening last night, one of the nation’s largest banks-Washington Mutual Inc-failed.
The Federal Deposit Insurance Corp. seized WaMu and then sold the thrift’s banking assets to JPMorgan Chase & Co. for $1.9 Billion.
Look, WaMu, which is based in Seattle and was founded in 1889, is the largest bank to fail in the country’s history. Its $307 Billion in assets eclipse the $40 Billion of Continental Illinois National Bank, which failed in 1984, and the $32 Billion of Indy Mac, which failed in July of this year.
This was just last night.
Let me just be frank the $700 Billion bailout will not work to save the banks.
For one it does nothing to stop mortgage defaults or to make credit available to companies and consumers who are literally starving for cash.
And to make matters worse, the credit contagion is spreading like a wildfire through hundreds of retailers and other consumer companies nationwide ...
Behind the scenes of all this madness the Federal Reserve has been lending to Banks, Investment Banks, Insurance Companies namely AIG to the tune of $260 BILLION DOLLARS …
This week alone… $260 Billion Dollars…In ONE WEEK!
If $260 Billion Dollars in one week can’t ease the problem, $700 Billion spread out over a period of time is really just a drop in the bucket.
So the true delay is that many are beginning to realize that the bailout is nowhere near enough to save all of the banks and lenders that are being slaughtered by bad “toxic’ (their word) mortgage investments.
It is clear that the Government can’t do anything to cause banks to begin making loans to consumers and every body is beginning to see that every company that sells its products or services on credit is getting murdered by the “consumer” credit crunch, which threatens the earnings and profits of these companies and also hurts their stock price.
This thing can get very ugly and ugly very fast so work hard to prepare yourself.
This economic environment is continuous compared to the Crash of ’29 and the Crash of ’87. Here is the really bad part. October is the month that brought us the Crash of '29 and the Crash of '87. Let’s hope this October doesn’t usher in the Crash of ’08, but it sure looks like it.
For my analysis of the horrible position of the American economy and U.S. dollar, read my FREE report “Fall Of The Dollar: Are Black People Prepared For The Coming Economic Collapse?”
http://www.fallofthedollar.com
Posted By: Bro Bedford
Friday, September 26th 2008 at 3:32PM
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