So the markets across the world started seeing exactly how screwed the US is over “our” weekend and holiday and they went into a tailspin. Who the hell could blame them, when you strip off all the bullshit away from the US economy it’s a feeble old man with no clothes! The Nikkei on Monday was down over 750 points sparking the “oh my god” attitude to the rest of the world. I actually saw pictures of Indians (the SE Asia types) praying to a big screen hoping the numbers would reverse! Sorry my Indian friends, your god can’t help you here; this is a job for Super FED!
The stories go Ben and company spent the whole night in meetings deciding what to do about this mess but do us both a favor and don’t believe that crap! I told my wife at 8pm Monday night Ben and company would do at least a 50 basis point cut before the market opened with the top at 100 basis points and I slept damn well JUST LIKE Ben and his cronies did! It took them about 30 seconds worth of phone calls to decide on that .75 point cut that “saved the world” and then they too all went to bed! So “Super Ben” saved the day …. or did he? Personally I think he screwed us (the US) SO BAD he may have actually put the final nail in the coffin. Mr. Bernanke followed the Allan Greenspan play book by the letter and once again gave up the US dollar and OUR well being to save his rich ass buddies on Wall Street but who cares, he saved Wall Street didn’t he?
Something happened Friday that could have some extremely ugly repercussions over the coming weeks and it is one of the scariest things I have seen yet in this ugly, ugly mess of an economy. The news that really bothered me was that AMBAC’s rating was dropped two levels from AAA to AA. Now I knew it was probably going to happen and Jim Cramer from Mad Money has been screaming about them possibly breaking the law for some time, as a matter of fact he scared the hell out of the people at CNBC’s Squawk Box the other day when he went on a scathing rant about AMBAC and MBIA … you can see it here. Now I’m no expert on the bond market, far from it, but I know enough to know this is a touchy area of the economy that really needs to stay healthy! What bothers me and so many others that know what is going on with this mess of an economy is what this downgrade could mean to the economy and so many so-called rock solid bonds that have been safe and sound for so many years.
You see AMBAC is an agency that insures bonds. Between them and their competition, MBIA, they insure a combined $700 billion (yes that’s with a B) in bonds. Because of this rating cut AMBAC will not be allowed to back any new bonds, as a matter of fact the bonds they now insure could come into question and that is ten times more dangerous to the financial market than the subprime mess itself! If in fact these bonds were downgraded the loss to financial institutions could very well be devastating. Donald Light, a senior analyst at Celent has said “The concern is that downgrades will lead to a reduction in the value of portfolios at dozens of financial institutions” and then went on to say “Bond insurers are the lynch pin holding together valuations of portfolios of all kinds of financial institutions”.
I’ve been warning about the coming economic problems in the US for a few months now, maybe not as much as I should have but then again I’ve been trying to protect my own family against the coming shit storm so maybe I’ve been a little lax in my warnings. You can’t blame me for taking more time than normal to try and save my friends and family though!
So here we are, I’ve been saying for close to 4 months that the federal government would hold off as much bad news as possible until after the Christmas shopping season and by god I was right! The reason they had to hold off all the bad news is that the US economy has been “stroking along” for the past several years based on the retail consumption of US citizens! The latest information shows that 70% of the US economy is based on shopping, not manufacturing, not exports, not anything that would show a healthy economic sensibility! It’s ALL been based on you and I whipping out the old credit card and saying charge it!
I said I was going to start beating everyone over the head about the MOST important issue facing this nation right now, the economy and today I have some more ammunition each and every American needs to take the time to watch… it’s an interview with Glenn Beck (yeah I’m not a real fan either). Whether or not you are a Glenn Beck fan or not you can NOT dismiss the person he is interviewing, the Comptroller of the United States of America, David Walker. This the man that watches OUR money being spent by the government and he is saying we are BANKRUPT! I seriously advise each and every one of you to watch this video and then ask YOUR candidate what the hell they are going to do about it! If they can’t tell you then I advise you to find a new candidate because the ONLY one that has the guts to tell the truth about this is Ron Paul. The rest of them are lying to you each and every day with their “economic stimulus packages” and “tax breaks” …. it’s all crap!
This is why the US dollar is quickly becoming monopoly money! It is a national security problem of THE largest magnitude!
I sat and watched the NH results last night and just shook my head, the games have begun again. What I find amazing is how the so-called press instantly thinks the poll results were completely wrong again, defying all logic and never questions the results. We saw this same “amazing’, “stunning” reversals in the 2000 and the 2004 elections but this time they have started early. Why? Because they are scared to death that someone that might actually change things might be able to get into office. But what has been ignored AGAIN are all the discrepancies in the voting that will go unanswered.
One district reported Ron Paul did not get a single vote, the only problem with that was there were people that did vote for him and when they called to question the results the officials said “oops, human error”. But I’m not here to bitch about Ron Paul’s votes … I am here to talk about how Hillary supposedly won when every last poll had Obama at 15 - 22% ahead of her the night before.