Depression may happen before 2009

1,Failure of the bailout.
First, the $700 billion rescue for the economy was about buying devalued mortgage-backed securities from tottering banks to unclog frozen credit markets. Then it was about using $250 billion of it to buy stakes in banks. The idea was that banks would use the money to start making loans again. But reports surfaced that bankers might instead use the money to buy other banks, pay dividends, give employees a raise and executives a bonus, or just sit on it. Insurance companies now want a piece; maybe automakers, too, even though Congress has approved $25 billion in low-interest loans for them.

2, Foreclosure filings up 71% in the Third Quarter. WASHINGTON (AP) — The number of homeowners ensnared in the foreclosure crisis grew by more than 70% in the third quarter of this year compared with the same period in 2007, according to data released Thursday.

3, US debt clock runs out of digits —- BBCNews
The US government’s debts have ballooned so badly the National Debt Clock in New York has run out of digits to record the spiralling figure.
The digital counter marks the national debt level, but when that passed the $10 trillion point last month, the sign could not display the full amount.The board was erected to highlight the $2.7 trillion level of debt in 1989.
The clock’s owners say two more zeros will be added, allowing the clock to record a quadrillion dollars of debt.Douglas Durst, son of the late Seymour Durst - the clock’s inventor - hopes to replace the Manhattan clock with its lengthier replacement early next year.
For the time being, the Times Square counter’s electronic dollar sign has been replaced with the extra digit required.For its part, the digital dollar symbol has been supplanted by a cheaper version - perhaps a sign of the times for the American economy.
Some economists believe the $700bn bail-out plan for ailing US financial institutions could send the national debt level to $11 trillion. I can see why people are somewhat worried.

4, While we bleed jobs like a stuck pig, where will profits come from to support stocks?
When are people gonna learn that a country needs good solid physically productive substance first and foremost (and actually only)? Having abandoned virtually all physical productive activity and turning almost exclusively to paper-shuffling scams and largely destructive scams (the medical industry) with little honest AND efficient productive activity remaining - what is the source of growth? We certainly do not need or want “recovery”, because that implies the return of all that hyper-excessive, counter-productive paper-shuffling scam-buggery that WallStreet and government has been pushing. The demand will vanish and people will keep saving instead consuming. Stock market will be even darker.

5, Panic. Roubini Says `Panic’ May Force Market Shutdown
Oct. 23 (Bloomberg) — Hundreds of hedge funds will fail and policy makers may need to shut financial markets for a week or more as the crisis forces investors to dump assets, New York University Professor Nouriel Roubini said.

“We’ve reached a situation of sheer panic,” Roubini, who predicted the financial crisis in 2006, said at a conference in London today. “There will be massive dumping of assets,” and “hundreds of hedge funds are going to go bust,” he said. Overall, the stock market will either halt or crash, and the economic data will be worsen fast.

Related Posts:

• US debt clock runs out of digits —- BBCNews
• The 1929-1933 crash took stock market down 90%, today’s market down 45% - half way there
• The National Debt Never Sleeps—and Neither Should You
• Can America afford to keep postponing REAL reform in the banking industry?
• The Fed and U.S. banks would suffer irreparable harm if details of the loan programs were made public, according to the central bank’s senior counsel, Yvonne Mizusawa.

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