The demise of our global economy is not an event that will go in a straight line to the bottom. It will be up and down with lots of posturing on behalf of the ‘leaders’ of the ‘developed’ countries.
Today is yet another example of this political posturing as the European Central Banker came out and said he would do whatever necessary to preserve the Euro and the EC! Pray tell what that would be sir!
The only weapon that these guys have is the ability to print money into infinity. As we all know, infinite money chasing limited supply of products, goods and services means prices will eventually rise to the point where these prices can change on an daily if not hourly basis. Hyper inflation this is called. Something that we in this country have never witnessed.
We will see in the coming days more of the same as Greece exits the Euro and the EC, yields will go higher on the sovereign debts of the EC members that are in the most trouble which will result in the European Central Bank to print more money to buy their bonds to try and lower yields. At some point this type of strategy will simply cease to function as needed and collapse will follow, but not in a straight line.
Be very careful if you are in the markets now. I personally am and have been out for quite some time…Closed my account at PFG just in time! Stick to food, water, shelter, gold and silver if I were you…And pray for better days to come!
Since my last posting on this subject,not a whole lot has changed. Well, except the fact that this situation is getting worse, as we all knew it would, and the markets are noticing.
The stock markets have fallen in 3 of the last 4 days and most of the MSM is placing the blame on the European Financial crisis. Our corporate earnings are getting hit, with more to come many think, and the prices are diving.
It was just the other day that one of the ‘doomsday’ guys, that have good track records by the way, was saying we have fallen off the financial precipice. I don’t think he is far from wrong.
Common sense indicates that the world wide economy, including our own, has yet to see the worst. That is coming on a daily basis. Please don’t believe these talking heads when they tell you that they are ‘fixing’ the problem. I am not sure they, nor anyone else, know what the problem really is!
When you don’t know the problem, you certainly can’t fix it, even if they could and I for one don’t believe that the efforts (read money they are printing) undertaken will do any good at all.
The entire system is crumbling as I write. Since the Lehman debacle we have seen far too many financial houses succumb tot he economic pressures and of course sheer greed and fraud.
Look at PFG, the future clearing house that went broke and dang few of these people will ever see any money. Given the fragile state of affairs, why would anyone want to put their money in such a clearing house, just to take more risk to make money that, due to the risk of bankruptcy of the futures firm, they might never see again!
Folks, this financial crisis will slowly unravel the fundamentals of our economy. I suggest you get prepared…take a look at where your money is and how easy or difficult it will be to access it in the event of some financial catastrophe. Do you own any gold or silver? How easy is that to get to? I am all for the Boy Scout Motto here “Be Prepared”!
As I was writing yesterday the Bank of England and UK Treasury told the world that they were committed to ‘adding liquidity’ to the system in the face of the Euro Crisis. They didn’t want to be seen to be doing nothing ‘as the storm gathers’. Ominous words indeed.
Even our stock markets are rising as traders become convinced that the Fed will follow suit and ante up some trillions more liquidity to the system. Liquidity in every case is ‘printing’ more dough. In my mind this will eventually lead to inflation and the amount that they are printing these days could result in hyper inflation.
I have lived in economies with hyper inflation and it isn’t any fun believe me. Food prices soar, the cost of every single input rise dramatically and on a daily basis. The government usually comes in a ‘freezes’ prices on basic commodities, which by the way never works, and creates a healthy ‘black market’ by doing so. Also, expect ‘capital controls’ a nice way to say the government will control how much money you can withdraw on any given day, week or month. Greece just implemented these sort of rules to stop the run on their banks. Argentina has done this in the last 10 years as well. They limited withdrawals to 500.00 a month, no matter how much dough you did or didn’t have in the bank!
I can’t think of any scenario where inflation is a good thing. I suppose the powers that be are thinking inflation is better than a total system meltdown a la 1930 style depression. They should wake up, the depression is here and has been here for anyone not extremely wealthy for several years!
Get ready folks, this crisis is not over. Indeed it has barely begun.
Reading about the steps taken to ‘remedy’ the economic/finanical disaster in Spain (all of Europe looks pretty much the same) is like looking at 2008/2009 here in the U.S. all over again!
Merging banks, huge write downs on real estate etc. My issue is why did it take so long to hit Europe? Did they think they were immune to financial mismangement?
Spain to Unveil Bank Overhaul to Clean Up Real Estate
By Emma Ross-Thomas – Feb 2, 2012 5:51 AM MT
Spain is set to announce today its plan to shepherd struggling banks into mergers and make the industry set aside 50 billion euros ($66 billion) for real- estate assets left over from the bubble that burst in 2008.
The government will issue debt and inject the funds into banks via contingent convertible bonds, or CoCos, which convert into equity if capital ratios fall below a certain level, a person familiar with the process said yesterday. It will only support banks that merge and those lenders will also have more time to apply new provisioning rules, the person said.
Economy Minister Luis de Guindos speaks to reporters at 5:30 p.m. in Madrid today and the plan is due to be approved by the Cabinet tomorrow. The ministry gave no more details in an e- mailed statement.
Prime Minister Mariano Rajoy, in power since December, has pledged a “true restructuring” of the industry at no cost to the taxpayer four years after the decade-long property boom collapsed. Lenders have about 176 billion euros of what the Bank of Spain terms “troubled” assets linked to real estate on their books, including land and unfinished apartments, and have provisioned about a third of that.
“They don’t want it to cost the taxpayer anything, they don’t want to use EU bailout funds and they need it to be credible for the market, and those three conditions are apparently incompatible,” Fernando Fernandez, a professor at IE business school in Madrid and a former International Monetary Fund economist, said in a telephone interview.
The former Socialist government’s first initiative to help banks was to create the FROB bailout fund in 2009, which spent about 10 billion euros buying preference shares in lenders it encouraged to merge. In a second phase, the government bought ordinary shares in struggling lenders last year and in October, in a bid to shield the budget from further strain, it decreed that any losses generated by the overhaul would be absorbed by the industry.
Rajoy, who leads the pro-business People’s Party, had considered creating a so-called bad bank to buy toxic real- estate assets from lenders, two people familiar with the situation said in November. A bad bank may have clashed with Rajoy’s election pledge not to spend taxpayers’ money cleaning up lenders. Rajoy and Guindos have also ruled out using the euro region’s bailout funds to finance the overhaul.
Spain, which pays about less than 4 percent to borrow for five years, will issue debt to fund its purchase of the CoCos, which will yield 8 percent, said the person, who declined to be identified because the plan isn’t yet public. The Treasury sold five-year bonds today at 3.455 percent, down from 4.021 percent last month, as the European Central Bank’s policy of extending longer-term loans to banks bolstered demand for sovereign debt.
The plan to be unveiled today won’t have any impact on the budget deficit, the person familiar with the process said yesterday. Still, the CoCos may end up being converted into equity, Fernandez said, as the IMF forecasts Spain’s economy will shrink for the next two years, adding to pressure on banks.
“Barring positive surprises on economic growth, it’s probable the CoCos will end up being converted into shares and so we would be just postponing the cost to the taxpayer,” said Fernandez, who used to be chief economist at Banco Santander SA.
De Guindos said on Jan. 27 that banks were themselves capable of funding the 50 billion euros of additional provisions he wants them to make for real-estate. Provisioning efforts will be “especially dedicated” to foreclosed assets, particularly “land and other kinds of property,” he said in an interview in Davos, Switzerland, last week. Lenders the government thinks aren’t viable in the medium term will have to merge, he said.
To contact the reporter on this story: Emma Ross-Thomas in Madrid at email@example.com
The liklihood of a strong economic rebound worldwide is not a very high probablility in my mind, regardless of our stock market having the best January in many years etc…Economic outlook is still very bleak in my mind!
As incredible as it might seem for some, others like me have been convinced we were on this path for years, it appears that the end of the financial world as we know it is upon us!
How many headlines does one need to point to the obvious conclusion? This economic crisis is systemic, worldwide and now has a life of it’s own. The crisis cuts across almost every institution, banks, central banks, governments, politics, judicial system, stock markets, commodity markets, gold, silver, currencies…you name it and the effects or symptoms of this disease exists. It is impossible and imprudent to either ignore or explain away using all too familiar arguments fraught with illogical premises.
The Euro Zone crisis is the latest in a series of catastrophes beginning perhaps with the 2008 debacle that one might say was the trigger event that continues to bring us ‘gifts’ of the most rancid sort.
The best part of this process has been that ‘The People’ seem to have found some backbone (probably because they haven’t had enough to eat and their backbones are showing now to the point where it is impossible to ignore the causes) and the multiple ‘Truths’ that are coming out about the way in which the crisis and the institutions at their center are being dealt with by ‘OUR’ government!
The People regaining their voice world over is heartening. I support these acts of disobedience and sincerely hope that they are not hijacked by those that lie at the heart of our current malaise. We need only look to the Arab spring and fall and the Occupy Wall Street movement to see the Voice in action.
The dark side of people finding their voice is the all too frequent, expected but appalling, reaction of the ‘establishment’ as they send their minions out to protect their intersts ibid the horrifying scenes of pepper spray, rubber bullets and other examples of excessive force by the ‘storm troopers’ clearing out the protesters over the past several weeks. Of course, these actions are mild compared to the backlash at the people in Egypt as Arab Spring turns into Fall…multiple deaths are occurring everyday.
The Truths that are beginning to come out range from the continued abuse of the American Peoples ‘good nature’ as we see Fannie Mae and Freddie Mac execs receive obscene, multi million dollar compensation packages even when they continue to lose BILLIONS OF DOLLARS. Their excuse: Wall street pays big wage to those responsible for large amounts of dough…hey I say let Wall Street have these bums!
Further, we have more and more information as to just how deep the pile really is and it is deep…from outright criminal activity by banks to the regulatory agencies willing to turn a blind eye and the judicial/justice system willing to uphold all of it! Of course, there have been a few exceptions of judges willing to stand up to the SEC and other regulatory agencies and the Too Big To Fail’ banks.
My opinion: Someone needs to go to jail and pretty darn quick! There are multiple individuals that surely qualify! Certainly there are numerous firms that not only could use some hard line tactics to teach them ethics but also punitive fines, both against the individual and the institution, for such unethical behavior.
Unfortunately, there are few news outlets that will permit their reporters to actually report these events as they play out. Fortunately there are some as in Matt Taibbi of the Rolling Stone that has done and continues to do an outstanding job uncovering and reporting these incredible activities!
In my opinion it is a time for BIG CHANGES all over the world and in every sector of our cultures, banking, government and even the way in which people will interact with whatever system we end up with. It is time for ‘The People’ to take responsibility for the state we are in and move for conscious change!
In the meantime, gold, silver and some stored food never looked better…Be Prepared!
Well the article from the UK below spells it out, the weak are going to get kicked out of the EC or kinda kicked out and the strong will survive…this is the death of the whole system as they know it.
Without all the players who is left? Germany and maybe France, although their bond yields are skyrocketing today as well as the ‘contagion’ spreads’. This is a very serious situation for all of us-worldwide. The only way I see out, or actually further into economic catastrophe, is to print more money and then we will eventually see inflation. We should see some devaluation almost immediately.
The worst is yet to come in my opinion…stay tuned. No one, not even the ‘leaders’ of the EU know what the heck to do. A lot of grabbing at straws and talk to keep the markets from totally imploding.
GERMANY AND FRANCE’S SECRET PLAN FOR A ‘NEW FEDERAL EUROPE’
Angela Merkel and Nicolas Sarkozy with Berlusconi discuss the eurozone crisis
Thursday November 10,2011
By Emily Fox for express.co.uk
Have your say(36)
THE leaders of Germany and France are secretly planning for a new federal-style Europe in a last-ditch bid to save the euro.
German chancellor Angela Merkel insisted there was now a need for ‘more Europe’ in order to rescue the economic and political crisis gripping the eurozone.
She said Europe’s plight was now so ‘unpleasant’ that deep structural reforms were needed quickly, warning the rest of the world would not wait.
“That will mean more Europe, not less Europe,” she told a conference in Berlin.
Her comments followed reports that France and Germany are secretly preparing to force weak countries out of the euro with Merkel warning nations not pulling their weight that they could be booted out.
The German chancellor also called for changes in the main EU treaties after French President Nicolas Sarkozy advocated a ‘two-speed Europe’ in which eurozone countries accelerate and deepen integration while an expanding group outside the currency bloc stays more loosely connected – a further signal that some members may have to quit the euro.
We need more Europe, not less Europe
German Chancellor Angela Merkel speaking at a conference in Berlin.
“It is time for a breakthrough to a new Europe,” Merkel said.
“A community that says, regardless of what happens in the rest of the world, that it can never again change its ground rules, that community simply can’t survive.”
With European leaders still struggling to find a credible response to the crisis, the prospect of one or more countries leaving – and effectively defaulting on their sovereign debt as they do so – is rising by the day.
The news came as Jose Manuel Barroso claimed that membership of the EU and belonging to the single currency should be one and the same thing.
SEARCH UK NEWS for:
“In principle all member states of the European Union [including Britain] should be members of the euro. It’s an obligation of the treaties,” Mr Barroso said in Brussels.
Downing Street declined to discuss reports – denied in both Paris and Berlin – that France and Germany were discussing an overhaul of the single currency that would lead to a more closely integrated eurozone with fewer member-states.
Mr Cameron said: “If the leaders of the eurozone want to save their currency, they and the eurozone institutions must act now together, because the longer they delay, the greater the danger.
“It is not in our interests for the eurozone to break up – for countries to leave the eurozone.
“We have to keep the British economy safe, to take the British economy through this storm. That means preparing for all eventualities.”
Warnings that Britain could face a second recession due to the developments in the eurozone were prevalent as Business Secretary Vince Cable revealed contingency plans if the euro should fall.
“Growth has stalled in Europe, and there is a risk of a new recession,” said Economic and Monetary Affairs Commissioner Olli Rehn.
“While jobs are increasing in some member states, no real improvement is forecast in the unemployment situation in the EU as a whole.”
He said the key to reviving growth and job creation was “restoring confidence in fiscal sustainability and in the financial system and speeding up reforms to enhance Europe’s growth potential”.
The commissioner added: “There is a broad consensus on the necessary policy action. What we need now is unwavering implementation. On my part, I will start using the new rules of economic governance from day one.”
Today’s Autumn economic forecast for next year says confidence has “sharply deteriorated” and is affecting investment and consumption.
The European Central Bank’s hardline chief economist told eurzone governments not to expect the bank to rescue them with unlimited funds, despite its efforts to stabilise runaway bond markets.
“We are not the lender of last resort and I do not advise European governments to ask the ECB to become lender of last resort,” Juergen Stark, who will quit his post in protest at continued bond-buying told a conference in Frankfurt.
“This will mean that the ECB immediately will lose its independence.”
Again folks this is some serious business that will affect everyone here in this country as well. Just as our 2008 debacle affected people worldwide, their current debacle is sure to return the favor…and with a banking system already weak, this could the the timber that breaks it all apart!
The latest article from Bloomberg news goes into some of the psychology around the AIG bailout and the new stock offering. It appears that the ‘new’ investors would be buying a ‘pig in the poke’ so to speak, as AIG effectively denies that it will ever be able to use it’s tax loss carry forwards to any measurable extent and has therefore been using some accounting tricks to make that look better.
I wouldn’t trust these guys as far as I could throw a bull by it’s horns, meaning not at all…ever, never. The money that we, the taxpayers, threw at this unbelievable sow was just good money after bad! Unfortunately we didn’t have any choice in the situation. Our illustrious Treasury secretary at the time made all of our decisions for us in a vacuum. Of course, Congress cooperated like a bunch of blinded sheep.
Now if we can get any of our dough out of this deal will be a miracle. I have no idea what the stock offering will net, but I don’t envy the buyers here!
Government Prays a Bigger Sucker Is Out There: Jonathan Weil
Look through the footnotes in American International Group Inc. (AIG)’s latest annual report, and you will see a long section analyzing the company’s ability to use past losses to offset future income-tax obligations.
The gist: AIG’s executives have gazed into their crystal ball and concluded that the company’s prospects don’t look good. That dim outlook may help explain why the U.S. Treasury Department seems so anxious to begin reducing its 92 percent stake in the bailed-out insurance company, after a 36 percent drop in AIG’s stock price this year.
The disclosures to watch here have to do with an item known as deferred-tax assets. Typically these consist of tax- deductible losses and expenses carried forward from prior periods. Companies can use these to lower future tax bills.
Under generally accepted accounting principles, such carry- forwards are valuable only to companies that are profitable and paying income taxes. If a company doesn’t expect to fully use these assets, it’s required to record what’s called a valuation allowance on its balance sheet to reduce their carrying amount.
In AIG’s case, the company has set up a full valuation allowance against its deferred-tax assets. AIG said it did so based on management’s conclusion that the assets “more likely than not” won’t be used. Forward-looking indicators don’t get much more bearish than this.
Here are the numbers: AIG said it had net deferred-tax assets of $24.5 billion as of Dec. 31, before factoring in the allowance. With the allowance, which was $25.8 billion, AIG finished last year with a $1.3 billion net deferred-tax liability — in effect, a future tax obligation.
In other words, the allowance more than wiped out the net assets. This wasn’t the case a year earlier. At the end of 2009, AIG showed net deferred-tax assets of $5.9 billion, including the allowance. AIG hasn’t disclosed what its tax assets were as of March 31, and a company spokesman, Mark Herr, wouldn’t say.
The footnotes also show a breakdown of the different types of AIG’s carry-forwards on a tax-return basis. For example, as of Dec. 31, AIG said it had $11.3 billion of net operating loss carry-forwards that expire from 2028 to 2030. It would need about $32.3 billion of taxable income from its operations over 20 years to fully reap those benefits, assuming a 35 percent tax rate. AIG concluded it likely won’t realize any of them.
“The implication is there are significant questions about future profitability,” says Charles Mulford, an accounting professor at Georgia Institute of Technology in Atlanta, who reviewed AIG’s disclosures at my request. “It should give investors pause.”
A full allowance is something you normally see only at companies in huge trouble. Over the past decade, Delta Air Lines, Bethlehem Steel and General Motors, among others, all took big charges to earnings to boost their deferred-tax allowances — before filing for bankruptcy. Other companies, such as Citigroup, have drawn criticism for taking the opposite approach: Even when they were on death’s door, they still hadn’t recorded any such allowance.
AIG executives lately have been spinning the company’s tax assets as a good thing. The company is trying to complete a big stock sale, after all.
During a May 6 conference call with investors, AIG Chief Executive Officer Robert Benmosche called the company’s deferred taxes a “source of funds” that the company could use to buy back stock someday. David Herzog, AIG’s chief financial officer, referred to the company’s tax assets as “very valuable.” In a slide-show presentation for investors this month, AIG said it has “substantial deferred tax assets that are available to offset future tax obligations.”
Yet for these assets to be valuable, AIG will need an opportunity to use them. Chances are it won’t be able to, if we’re to believe what the company said in its annual report. That position hasn’t changed. In the prospectus it filed May 11 for its stock offering, AIG said it still holds a full valuation allowance on its balance sheet.
It’s conceivable that AIG’s forecasts might prove too conservative, reflecting an overabundance of caution. In that case part of the allowance might be reversed later, boosting net income. Yet we probably should take management at its word that the full allowance is needed. This isn’t the kind of stance a company would adopt unless it had to.
This month AIG and the Treasury Department said they plan to offer 300 million common shares to the public, two-thirds of which would come from the government. Most companies that repaid their taxpayer-bailout funds, such as JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC), did so in cash. Not AIG.
AIG paid back the $47.5 billion that the Treasury injected into the company by converting its stake into common stock. Those shares were worth about $51 billion based on AIG’s $30.83 closing price yesterday.
It stands to reason that AIG would have repaid Treasury in cash if it could have afforded to do so. That its executives, at least for accounting purposes, hold such a gloomy view of the insurer’s prospects only reinforces the notion that AIG still is an unhealthy company. Anyone looking to buy the stock now had better hope they know something management doesn’t.
(Jonathan Weil is a Bloomberg News columnist. The opinions expressed are his own.)
To contact the writer of this column: Jonathan Weil in New York at firstname.lastname@example.org
To contact the editor responsible for this column: James Greiff at email@example.com
These are the kinds of things that we can come to expect from the too big to fail companies in collaboration with our government.
As we have been saying for sometime now, the home/equity/mortgage issues are not going away anytime soon and BoA is acknowledging this to it’s shareholders. With the proposed settlement of 5 billion for all the crooked mortgage docs etc. (which will probably be accepted to the chagrin of all the folks screwed) on top of falling prices as more homes are foreclosed on and sold at fire sale prices affecting all the other homes in the neighborhood and no end in sight, these banks are in a very precarious situation.
If it is bad enough to warn shareholders, you and I need to pay attention here as the ‘too big to fail’ banks continue to be at risk of failing! Another bailout would come, over the protests of the citizens, to ‘save’ the system. A system that is completely bankrupt, financially and morally!
We need to find solutions for our families and communities and these WILL NOT COME FROM GOVERNMENT! We have FEMA camps as the most likely government solution to upheaval…
I urge everyone reading this to consider these ideas. That this economy is in deep trouble should be clear to anyone with half a brain.
BofA CEO: Housing Faces ‘Enormous Challenges’
Bank of America Corp. (BAC) Chief Executive Officer Brian T. Moynihan told shareholders today the nation’s housing market faces “enormous challenges” and that the lender is still struggling to contain bad mortgages.
The bank, the biggest in the U.S. by assets, is putting “legacy” loans behind it and must resolve issues that arose after the acquisition of Countrywide Financial Corp., said Moynihan, 51, at the company’s annual shareholders meeting in Charlotte, North Carolina, where the bank is based.
Refunds and legal settlements tied to defective home loans dragged down first-quarter profit 36 percent to $2.05 billion, and the mortgage unit “still struggles mightily,” Moynihan said. Bank of America is the biggest servicer of U.S. mortgages, and is among firms negotiating with state attorneys general on potential penalties for faulty foreclosures.
Fourteen of the largest servicers including Bank of America signed a consent decree in April with the Federal Reserve and Office of the Comptroller of the Currency that compels them to pay back homeowners for losses on foreclosures that were mishandled, and to overhaul procedures for seizing homes.
Earnings are suffering from excess risk taken on when the firm acquired Countrywide in 2008, Moynihan said. While regulators at the time welcomed the bank’s rescue of Countrywide — which had been the biggest U.S. home lender — “attitudes have changed,” he said.
The bank has worked over the last year to rebuild a “fortress balance sheet” and capital cushion “to make sure we can handle anything that comes our way,” Moynihan said. Capital ratios are the strongest in a decade and the core franchise is strong, he said.
Moynihan told attendees today that the company needs to resolve concern about bad mortgages and lower the perceived volatility of the firm in the eyes of regulators before trying again to win approval of its capital plan, which would allow the company to raise its dividend. The plan will be resubmitted when management is sure regulators will accept it, he said.
Bank of America was left behind as competitors including JPMorgan Chase & Co. and Wells Fargo & Co. passed a Federal Reserve review of their capital plans and then increased their payouts. Moynihan had told investors in January and March that he believed the firm could raise its dividend this year. Bank of America had a 64-cent quarterly payout until 2008; it’s now a penny a share.
Promising a dividend before knowing you could deliver it was a “rookie mistake,” said Tony Plath, a professor of finance at the University of North Carolina in Charlotte who follows Bank of America. Moynihan became CEO in January, 2010.
“You can’t be a rookie CEO when you’re running a $2 trillion company,” Plath said in an interview before today’s annual meeting.
Investor Judith Koenick, who said her income was slashed when the dividend was cut, said Moynihan and other executives should forgo bonuses until they fully restore the payout.
“I would like you to explain how you’re entitled to all this money when you’re still sticking it to shareholders,” said Koenick of Chevy Chase, Maryland. “You should not be taking more than a dollar until you get the stock back up to where it was before you and your predecessors screwed it up.”
To contact the reporter on this story: Dawn Kopecki in Charlotte at firstname.lastname@example.org.
Continue to stock up on food and other supplies. I think we will get another great opportunity to purchase silver and gold in the next few days or weeks. Silver is now at around 35.50 as I write down from over $40.00 just a week ago.
This article found on the economic collapse blog is very well done and pulls some info and vids on just how people are losing it all over the country. When you don’t have anything left to lose…well then you lose it!
It is time to continue to get prepared for an economic collapse, it is happening right now all around us. We have to stay focused here.
Americans Gone Wild
Gerald Celente is known to love to make the following statement: “When people lose everything and have nothing left to lose – they lose it.” Sadly, Celente is exactly right about this. As the U.S. economy continues to collapse, Americans are going to becoming increasingly frustrated, and this frustration will inevitably boil over into rioting and violence. Could we be starting to see the start of this already? The number of Americans that have “gone wild” seems to be escalating. Years ago, losing a job was not that big of a deal. Now a job loss is enough to cause some Americans to snap and go over the edge. We are seeing restaurant brawls and open violence in the streets that would have been unthinkable 50 years ago. All over the nation people are losing it and are literally going crazy. The news stories and the videos posted below of “Americans gone wild” are very graphic and very shocking. There is a reason for this. These examples are meant to show you that the very fabric of our civilized society is falling apart. It won’t matter who ends up leading us politically if this is the kind of people we become.
Sadly, it appears that we are not the same kind of people that we used to be. Something has changed in America. Something is different. We have forgotten many of the things that made us great as a nation. We no longer live by the same principles. We no longer value the same truths.
There are examples of “Americans gone wild” all over the nation. The things you are about to read about below are not just isolated incidents. The truth is that I could have easily included dozens more examples.
As the economy continues to crumble this trend is going to get even worse. The following are just a few examples of how Americans have been freaking out and losing it recently….
*One elementary school teacher in the town of Monroe, Georgia was arrested recently for something very unusual. One day he made the decision to walk around the halls of his school completely naked. So why was he naked? Well, it turns out that he learned that he was going to be fired and so he snapped.
*As I have written about previously, McDonald’s recently held a “National Hiring Day” and about a million Americans showed up to apply for jobs at McDonald’s restaurants all around the nation. Well, in Cleveland a horrible fight broke out between some girls and it ended up with three people being run over by a car. Do not watch this video if you are sensitive to graphic violence….
*In Sioux City, Iowa a 41 year old man recently walked into the office where his boss worked and beat the living daylights out of him. The boss suffered four chipped teeth and needed surgery to repair his nose. Apparently the boss was planning to fire the man.
*At a McDonald’s restaurant in the Baltimore, Maryland area two young girls recently beat and kicked another young girl so brutally that she started having seizures. The following video is very graphic and has some very strong language….
*Recently, one gold thief was so desperate to get into a jewelry store that he rammed his truck backwards through a wall of the store at very high speed. The thief got away with a bunch of gold and jewelry and the owner is scared to death that he is going to come back and do it again.
*In the following video from a Denny’s restaurant, young women are actually throwing plates and furniture at each other….
*In Brooklyn, New York a security camera recently captured chilling footage of a cold-blooded execution right in the middle of the street. One resident has named that particular street “body-a-week avenue”.
*In Atlanta, two dozen teens violently assaulted two Delta flight attendants on a train recently for no apparent reason. The following is how a local Atlanta newspaper described the attacks….
Their “Clockwork Orange” style blitz was over soon after it began. The teens boarded the train, headed to Hartsfield-Jackson International Airport, at the Garnett station a little after midnight seemingly intent on instilling fear. They succeeded.
“There was blood everywhere, people were hollering and screaming,” a witness told Channel 2 Action News. “We were intimidated. People were terrified. People were trying to run. But there was nowhere to run.”
Sadly, there are hundreds more examples like these. There are so many restaurant brawl videos up on YouTube that it would take an entire weekend to watch them all.
You don’t think America has changed?
What does it say about America when the murder rate in Flint, Michigan is worse than the murder rate in Baghdad?
There are some areas of the country where people simply do not go out of their homes at night.
We refused to discipline our young people and demand the best out of them so now we are reaping a bitter harvest.
According to one recent report, approximately half of all the people that live in the city of Detroit are illiterate.
Can you imagine that?
Half of the people that live in a major American city can’t even read?
Can that possibly be true?
What does that say about the way that we are educating our children?
Sadly, due to harsh economic conditions up in Detroit, about half of the schools in the city are being closed down for good.
That certainly isn’t going to make anything better.
But this is where we are at as a nation.
We borrowed and borrowed and borrowed and we never thought that we were going to pay the price.
Now the “credit card bills” are coming due, and state and local governments from coast to coast are completely broke.
There are signs of economic decline all over the United States. More than 33 percent of our men do not have a job. Over 44 million of our fellow citizens are on food stamps. Our country is literally falling apart.
So is there any hope for our nation or are we going to see even more “random acts of violence” as frustration comes to a boiling point for tens of millions of Americans?
Read this article and if you are undecided or unconvinced as to the state of our country you might just change your mind.
In a not too surprising move Greek debt ratings were cut yet again today to B from BB-. The interest rate on their debt now stands about 15.5%, which is almost as high as credit card debt here in the U.S. nowadays. For most of us those high rates are just untenable so how is the government of Greece going to pay on so much more debt outstanding?
The EU, Germany in particular, is talking about issuing bonds backed by EU in exchange for Greek debt, a la the now infamous ‘Brady’ bonds that the U.S. issued in exchange for the debts of various Latin American countries in decades gone by. These Brady bonds worked out well for most investors for most of the time, however times are much different today than 30 years ago.
The entire World stands on the brink of complete financial chaos. EU to the U.S. and all countries in between, excepting of course many of those 3rd world South American countries that are resource rich and doing pretty well these days. Note all the BRIC countries whose biggest problem these days seems to be the U.S. currency and economic policy that is driving the value of their reserves down.
Now the Euro is getting weaker vs the dollar but don’t be fooled folks this is a race to the bottom of the pile…who arrives first depends in large part on the courage of the rating agencies to rate bonds correctly. I am referring to the ratings on the U.S. bonds which should be going down as we speak.
The majority of our States have huge debt problems with several in danger of default. The financial condition of our country is the sum total of the condition of our states, much like the European Union….and look at how they are doing.
Be very careful in the markets if that is your game. I expect extreme volatility.