Do you remember that massive wave of subprime mortgages that defaulted in 2007 and 2008 and caused the biggest financial crisis since the Great Depression? Well, the "second wave" of mortgage defaults in on the way and there is simply no way that we are going to be able to avoid it. A huge mountain of mortgages is going to reset starting in 2010, and once those mortgage payments go up there are once again going to be millions of people who simply cannot pay their mortgages. This chart reveals just how bad the second wave of adjustable rate mortgages is likely to be over the next several years.
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The recent economic downturn has left some localities totally bankrupt. For instance, Jefferson County, Alabama is on the brink of what would be the largest government bankruptcy in the history of the United States - surpassing the 1994 filing by Southern California's Orange County.
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So will the U.S. government come to the rescue? The U.S. has allowed the total federal debt to balloon by 50% since 2006 to $12.3 trillion. The chart below is a bit outdated, but it does show the reckless expansion of U.S. government debt over the past several decades. To get an idea of where we are now, just add at least 3 trillion dollars on to the top of the chart.
When a nation practices evil, there is no way that it is going to be blessed in the long run. The truth is that we have become a nation that is dripping with corruption and wickedness from the top to the bottom. Unless this fundamentally changes, not even the most perfect economic policies in the world are going to do us any good. In the end, you always reap what you sow. The day of reckoning for the U.S. economy is here and it is not going to be pleasant.
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fix the link to the story. it is missing one letter. people cannot get to the article. thanks!
ReplyDelete8:36, does it really matter?
ReplyDeleteMore regurgitated BS is all it is.
EA missed the point, things are not half as bad, this is why NOBODY donates to this blog.
9:26am...Not going to argue with you...Just a quick personal story:
ReplyDelete2003-2004 I used to argue with an ex punk rocker turned yuppie.
He was all "Blah blah blah DOW 12000...Dow going to 14000...Real estate a money maker...Greatest economy ever...You're insane...Nothing wrong...Blah blah blah."
Anyways, told him we can argue or see the effects in a few years on who's right...To this day he can't remember being a cheerleader for the economy and he only remembers knowing that it was all fake...Although he lost a ton on the market and lost his house.
So lets do the same with you...If in ONE year you can still "Green shoots...Rainbows and Unicorns...Turning the corner etc etc" then you my friend are a better man than I.
9:26 the reason most people are donating to this Blog or any other cause is they either do not have a job, have very little extra money, or sense things are going to get rough.
ReplyDeleteEA does a nice service on this Blog and maybe you should at least say "Thank You" to EA ... or go somewhere that you do feel like giving thanks.
Thanks EA. I appreciate what you're doing.
ReplyDeleteI don't know what's going to happen, but I know SOMETHING is going to happen.
We live in fascinating times.
There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. -- Ludwig von Mises
ReplyDelete926 havent you heard of the alt-a/option arm resets that are about to begin this spring into late 2011, haven't you hears of states and their unfunded pensions, commercial real estate prices fell 4.9 percent in the fourth quarter,"Smaller-sized U.S. banks will be hardest hit by their exposure to commercial real estate loans, and many of those banks will collapse, Moody's Investors Service said in a report released on Thursday",don't you see the countries like Spain,Italy, Portugal,Latvia, Lithuania,mexico,Ukraine, Ireland and the Uk facing complete debt default me thinks you watch too much CNN, MSNBC,and FOX news. Why do you think the criminal banksters are not lending because they have future losses coming with muni bonds,state bonds,credit card bubble etc. just as Ludwig said there is no means of preventing a final collapse by CREDIT EXPANSION,if you do it by credit expansion your currency will collapse and be utterally destroyed. this is what is happening to the dollar,euro,yeh,swiss franc. things will get even worse in the next couple of months and years. we have social security and medicare going to explode. well you won't listen to us so go watch keith olberman or glenn "the shill" beck or american idiot oh i mean idol.
Not to mention the 670 trillion dollar derivatives that is not unregulated and a threat to the world economy. so 926 there is no sugar coating it we are in worse condition then we were in 2007-8. we had a financial uss cole in 2008 soon we are going to have a finacial hiroshima. many states and cities are facing insolvency because of unfunded pensions and benefits same thing with corporations who also have unfunded pensions. 926 you are such an ass clown. i go to school to saint francis college in downtown brooklyn and i've seen many many buildings vacant. you just belive what you see on tv well it will take a second downturn to wake you up i guess. so continue to believe that not all things are not bad. the national debt ceiling is raised up 1.9 trillion but its not that bad. the unfunded liabilities are $100 trillion but its not that bad,banks are failing every friday but its not that bad,countries are going belly up but its not that bad.
ReplyDelete10:33 I agree with all you say with 1 exception, Glenn Beck. He is the only guy calling it like it is. You may not like the way he presents the facts, but he presents the facts. He is the only news person fighting the system of political corruption, unconstitutional practices taking place in Congress, pointing out who these leftist in the administration are (Van Jones, Anita Dunn, and many other of the Mao loving creeps) while also exposing Acorn, Soros, and the overall Progressive movement in this country. He presents a lot of facts and history to back it up. So while it may be politically correct to call Beck a shill, I would disagree. BTW, if shill means making a living providing factual information for the people of this country, then I would have no problem with calling him a shill.
ReplyDeleteThis country is seriously doomed.
ReplyDeleteAll I see on the link that this story provides is comments like this:
You need to put Reagan, George W. Bush and Dick "the shooter" Cheney's picture up there.
That's all I see, arguing between different "factions" and making fun of patriots. As a former Democrat I am really ashamed of these liberals. See, I have a liberal mindframe in general, I believe in equal rights for all, including gay marriage and animal rights, etc. etc.; however, I STILL CAN THINK CRITICALLY, which means that I can see that this economy IS DOOMED.
What really bothers me is all the attacking I see from liberals and Dems when economic issues are presented. Are they living on a different planet? WAKE UP IDIOTS, and stop arguing about Bush or whatever, this country is in trouble!!! IDIOTS!!!!!!!!!!!!
Absolutely! this going to end in sovereign default!
ReplyDeleteBRACE FOR IMPACT!!! I wish we had a competent and resourceful pilot in the cockpit like Sully Sullenberger instead of Congress and all the lobbyists. Pelosi and Frank and a few others give me nightmares.
ReplyDeleteboehner, hatch, LIEberman, Palin give me nightmares
ReplyDeleteI'm buying silver on the recent dip!
ReplyDeleteThe political winds in America are changing, and the people are demanding a government the acts responsibly.
ReplyDeleteJust like the late 1970's. Everything looked terrible back then, but the country recovered. A lot of Americans still have that can do sprit, and will once again make our country that shining city on a hill.
I agree, the american spirit will prevail. However, it is too late for policy changes. The economy will fail and the dollar will be worthless. We will come out of this, but with a differeny monetary system.
ReplyDelete