Posted by: Armel | September 15, 2008

Crash in the Financial markets: The Beginning of the end ?

                                 

I’M AFRAID THE STABILITY OF THE U.S FINANCIAL SYSTEM IS IN REAL DANGER 

OK this is just a thought and I wanted to share it with not only like minded but in fact to instigate opposite views. God knows I’m an optimist, but I’m afraid the stability of the U.S Financial System is in real danger now ! I hope someone would talk me out of it (pls). But when you look at how everything was playing out the last 2 years, YOU GOTTA BE WORRIED.

It’s going to take massive and successive interventions from the Government to keep this “closet” recession from blowing up and explode to our faces! But because the government fears like hell to be tagged Socialist, they won’t do anything drastic to save the entire system from crumbling. They would rather keep putting patches here and there and claim it as sounds economics measures

If you go back and do a time lime of what brought the system to it’s knees today, you will understand that, there is no way this path is soon about to reverse. Why? Because the foundations that were used to make all those assumptions about real value of an asset/ investment were modified and it’s only now that the street is realizing how cash strapped all those assets really are. And when you add-in the multiple effect that allowed those unsound “assets” to serve as collateral for the launch or trade of other assets, it definitely reminds me that if this a replay of 1929, in fact, next month is OCTOBER  ( brrrrr..you should be afraid people !)

Armel Njeunou

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Responses

  1. I mean they all made large bets and lost: Big Deal!
    There weren’t going to share their profits with people like me anyway so why should we care?
    I already gave up my 2 houses ( basically walked away). So as far as i’m concerned, let’s get back at it in 5 years from now.

    That’s how it works

  2. By the way, you guys should stop trying to scare people. We are in 2008 not 1929 for God’s Sake !
    What’s with you people? I bet you are a democrat

  3. I coudn’t believe what I witnessed yesterday. I lost more than 32% in my 401k in one day ! So when I read here that next month might be worse, I’m worried. Can’t we avoid this ?

  4. October is one day away uhn? Looks to me like the GOP won’t mind to be branded “socialist” anmore. You got it armel

  5. I hope everyone is aware of the credit card freeze! Since they all think it’s a wall street issue. Check your credit lines guys!


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