Thursday, 5 February 2009

"Acts of Insanity"

"The administration and others are in un-chartered waters. You won’t be told this, but this is an experiment. Protecting banks, mortgages and other loans against loss is not the province of government. This is not protecting the people. A bank for toxic assets is not the answer either. It just passes debt from lenders to the public. Why inject funds into bankrupt banks and other financial firms?"...
"The madness of espousing invasive fiscal and monetary stimulus to ward off the horrible evils of deflation is an excuse to lay the groundwork for a greater depression and a greater collapse."...
"We say it is insane to target asset prices, rig all stocks, forex and commodity markets, to suppress prices in one area and increase them in another. It is insane to bailout banks, brokerage firms, insurance companies and select elitist transnational corporations. It is insane to borrow and print money and credit to support prices in the debt securitization marketplace. It is insane to try to bail out one quadrillion dollars worth of derivatives. There is no way you can reverse a black hole."...
"The next bomb to hit will be the pension bomb. Both the stock market and bond markets are headed much lower; 50% lower. That is bad news for pensions and insurance companies, as well as anyone invested in those markets. "...
"The implosion will probably begin in state, local and private pension plans. Good portions of their assets are illiquid, perhaps 15% to 20% and there is no telling how long they will remain that way."...
"People will start to realize over the next six months how serious this depression is when they see ¾’s of malls empty and whole buildings in Manhattan without a tenant. The entire brokerage, insurance and banking industries are frozen and huge amounts of money will be lost taking down banks, insurance companies and private equity groups. This depression we are already in will be far worse than the 1930s."...

Source:
The International Forecaster
http://www.theinternationalforecaster.com/
February 4, 2009
http://theinternationalforecaster.com/International_Forecaster_Weekly/Acts_Of_Insanity_Are_What_Destroyed_The_Economy

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