"A Generalized Meltdown of Financial Institutions"

Reality has finally caught up to the stock market. The American consumer is underwater, the banks are buried in debt, and the housing market is in terminal distress. The Dow is now below its 200-Day Moving Average -- the first big "sell" signal. Anything below 12,500 could trigger program-trading and crash the market. The increased volatility suggests that we are watching a "real time" meltdown.

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"The global credit crisis has hit Asia with a vengeance for the first time, triggering a massive flight to safety as investors across the region pull out of risky assets. Yields on three-month deposits in China and Korea have plummeted to near 1pc in a spectacular fall over recent days, caused by panic withdrawals from money market funds and credit derivatives.

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The mechanism for converting covered bonds into cash has broken down.

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In California Governor Arnold Schwarzenegger has joined with four mortgage lenders to freeze adjustable interest rates (ARMs) for some of the state's highest-risk borrowers; another unprecedented move. The Governor hopes to avoid a collapse of the California real estate market which has gone into a tailspin. Home sales have plummeted more than 40 per cent for the last two months. Prices have dropped sharply---roughly 12 per cent statewide. New construction has slowed to a crawl. Layoffs are steadily rising. Jumbo loans (mortgages over $417,000) have been put on the "Endangered Species" list. Even qualified borrowers can't get mortgages. Nothing is selling. California housing is "off the cliff".

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"It is increasingly clear by now that a severe U.S. recession is inevitable in next few months...I now see the risk of a severe and worsening liquidity and credit crunch leading to a generalized meltdown of the financial system of a severity and magnitude like we have never observed before. In this extreme scenario whose likelihood is increasing we could see a generalized run on some banks..."

MORE:
http://www.globalresearch.ca/index.php?context=va&aid=7426

in a 'free market' business and economic environment, what else would YOU expect? How GD stupid are the government regulators and legislators for letting this kind of crap happen while they look the other way? Quit the happy talk about soft landings and BRACE YOURSELF for the next financial and economic depression. Twice in the last 100 years is inexcusable!!

Pretty soon the question won't be what company runs the US government, but which country(ies).

Ain't Free Trade swell?

But Abu Dhabi (and the brown, Muslim Arabs) are fair game for fearmongering.

...regardless of rebukes, or insinuations that I'm racist. There are more immediate issues at hand here.

Citi is the largest "American" financial institution, you know. The coming bloodbath in the financial markets is going to be one huge fire sale. An opportunity for foreign creditors to essentially take over this country's commerce, further concentrating their control.

America is being recolonized.

deregulation of the financial industry.

In two months it will be, though.