When a nation's central bank prints money out of thin air like our Federal Reserve does, the chickens always come home to roost. The fundamental laws of economics can't be refuted, just like a fundamental law of physics can't be refuted. There's always a reckoning, and it's starting now. Read the article here.
Commodity-based sound money is the key. It imposes discipline on bankers, so they oppose it. But look at the alternative. 2008 and 2009 are going to be rough. Do you have a spare bedroom for your foreclosed friends?
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The large finance companies will be able to ride the proble with the mortgages, they will write them off. The smaller ones will have a greater effect on the economy. And somebody with cas wiil buy the repo homes... :) me thinks...
The big ones are getting whacked too. Go to prudentbear.com and see the article on left about Countrywide. It's as big as it gets and they're mentioning bankruptcy. There's also an article about Freddie Mac - it's getting hit really hard.
The more friends in DC, the greater the moral hazard. That means the biggest lenders - just look at the disasters at Citigroup, Countrywide, Fannie Mae and Freddie Mac. They all thought they were "too big to fail." Now it looks like they're "too big to save." Good riddens...
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