Get ready-get ready NOW!
Your lifestyle's going to get downsized anyway-downsize it now while you can still extract cash and invest in:
*A place in a small rural community
*Learning basic trades and skills
*Buy guns, ammo, and get training at www.rwva.org
*Download everything you can at www.survivalblog.com
*Buy extra food, water purifiers, tools
It's not coming, it's HERE!
J. Croft
http://freedomguide.blogspot.com
WHAT DOES "FED PUMPS $68 BILLION INTO BANKING SYSTEM" ACTUALLY MEAN?
PART 1 of 2
By: Devvy
August 13, 2007
© 2007 - NewsWithViews.com
Last week saw a bucking bronco ride in the stock market. The American people read headlines such as: Fed vows, then pumps massive funds to calm markets and Fed's $38 billion helps markets. I have written many columns the past several years as have hundreds of others warning of the coming financial tsunami. Far too many people scoffed at all the warnings, continued to rack up massive debt and pursued the American dream of owning their own home when their financial portfolio and credit history simply could not float the big boat they were taking out into the ocean. The first of the dominos began to teeter earlier in the week: Aug. 6 (Bloomberg) -- "American Home Mortgage Investment Corp. became the second-biggest residential lender to file for bankruptcy protection this year, adding to signs that late payments have spread to homeowners with good credit records."
Dr. Edwin Vieira is arguably the foremost authority in this country on the central bank and the history of our monetary system. His monumental tomes, CrashMaker (fiction) and Pieces of Eight (non-fiction) are the quintessential teaching tools towards understanding this complex issue and making it understandable for average Americans like me. I bring this up because over the weekend I had a long telephone discussion with Edwin about the market last week. We both agree that the clock is ticking and all the bombastic gas let loose by financial guru's like FAUX's (FOX) Neil Cavuto, is just that because all the kings horses and all the kings men will not be able to fix this one. Not for a long time.
The government's plunge protection team (PPP) galloped in this past week and dumped almost $70 billion "dollars" into the banking system to save themselves. Creating "billions" out of thin air. Worldwide, central banks were scrambling and issuing more worthless paper to the tune of triple digit billions. The big neon billboard has been lit up with a message no one wanted: the stock market growing more fearful about tightening credit after years of free for all liquidity. High Times at Mortgage Express. Investors who don't have in-depth knowledge or real understanding of our monetary system and the FED, trying to figure out what's going to happen to their investments. The subprime mortgage market free fall has been building for years. These are loans made to people who have less than ideal credit - all being done during a housing market that began it's slumpalmost two years ago.
On August 9, 2007, the privately owned Federal Reserve pumped "$24 billion in temporary reserves to the banking system amid an increase in demand for cash from banks roiled by U.S. subprime loan losses." The next day, the FED infused the dying patient on the operating table three different injections: $38 billion. Some say this won't be nearly enough to stop the hemorrhaging. This latest "rescue" by the central bank is going to be short lived and many experts not on the government's payroll predict the FED will have to reverse it's decision last week to leave interest rates alone and instead, announce an emergency drop in rates. The wise folks over at urbansurvival.com said it best last Friday: "When up to a third of a trillion dollars being dumped into financial market's in 36-hours doesn't stem the tide, even the financially ignorant can sense something has changed. That's pouring money into the financial system at a rate equivalent to all of Canada's Annual GDP every four days. And what did we get? A 31-point Dow loss anyway!"
The government announced on August 10, 2007, that Freddie Mac and Fannie Mae will not be allowed to acquire any more mortgage debt.
REST AT LINK
