Forbes magazine said the United States is now facing perhaps the worst financial crisis since the banking panic that former President Franklin Roosevelt faced in 1933.
To help grease the financial plumbing Monday, the Federal Reserve pumped a total of $70 billion ($50 billion and then another regularly scheduled $20 billion were injected in temporary reserves) into the nation's financial system through open market operations to help ease credit stresses.
Lehman Brothers, the country's fourth-largest investment bank, filed for bankruptcy protection. A weakened Merrill Lynch, deciding it couldn't go it alone anymore, found help in the arms of Bank of America. Now, the insurance giant American International Group (AIG) is dangerously wobbling. Against this backdrop, Wall Street on Monday plunged 500 points, the most since the September 2001 terror attacks.
"Fed pumps $70B into nation's financial system"
http://news.yahoo.com/s/ap/20080916/ap_o…
"Wall Street is now at the mercy of Washington."
"Facing reporters at the White House on Monday, Wall-Street-titan-turned-Treasury-Secret… Henry Paulson deflected questions about whom to finger for the meltdown, saying simply: “I’m playing the hand that was dealt to me.” So is Wall Street, and it’s folding."
"No matter who’s elected, the next administration might have a much easier job of watching over the investment banking industry simply because it will be so tiny."
http://news.yahoo.com/s/politico/2008091…
On the trail... latest from our future leadership...
McCain: Fundamentals of Economy Remain Strong
On the campaign trail, Senator John McCain said that the fundamentals of the economy remain strong.
Sen. John McCain: “You know that there’s been tremendous turmoil in our financial markets and Wall Street. And it is—people are frightened by these events. Our economy, I think, still, the fundamentals of our economy are strong, but these are very, very difficult time. And I promise you we will never put America in this position again. We will clean up Wall street. We will reform government. And this is a failure.”
Senator Barack Obama accused McCain of subscribing to the same economic philosophy as President Bush.
Sen. Barack Obama: “For eight years, we’ve had policies that have shredded consumer protections, that have loosened oversight and regulation and encouraged out-sized bonuses to CEO’s while ignoring middle-class Americans. The result is the most serious financial crisis since the Great Depression. And I certainly don’t fault Senator John McCain for these problems, but I do fault the economic philosophy he subscribes to, because it’s the same philosophy we’ve had for the last eight years.”
All this has been happening since yesterday when the stock market dropped over 500 points and the ripple effect being felt around the world. Economists are all warning us this is a huge problem, it may be hard to get loans for cars, houses, etc. The state of the economy could get exponentially worse. People are being encouraged to withdraw from the banks and sell their stocks, etc.
I wrote about this last night (per FDIC not being able to deal with the trillion dollars potentiall at risk, etc.), and got some very interesting answers, please refer to that too for some keen insight and additional information...
Is American in trouble? Are bank deposits for once at risk?
http://answers.yahoo.com/question/index;…
What I want to know is... Are we really in this deep of trouble, What the economists are saying.???..
"Once in century kind of phenomenon!"
"This is the financial storm of the century!"
"Congress must recapitalize FDIC immediately!"
"1 trillion at risk, FDIC can only cover $50 billion!", etc...
Someone please explain what is going on and what is going to happen, or your opinions on this please.|||I believe the term that struck me last night was that if AIG declares bankruptcy, it would be a financial nuclear bomb. And yes, I do agree with the article that we are facing the greatest depression since 1933. If the Fed continues to tax Americans by printing more money and pumping into these companies to bail them out, we'll be getting there pretty quickly. The Fed is ultimately taxing every tax-paying citizen when they bail these people out. US citizens should be angry as hell about that. They're robbing us and many people don't even realize it. We're looking at hyper-inflation and a collapse of the U.S. economic system.|||No, Forbes in owned by rich people with no clue of the real world.
Hard to find a budget problem when you are always attending $500. a plate dinners.
BTW cut and paste has never really done much for me...It just shows you can quote someone else. Not think.|||The sky is falling, the sky is falling!|||you bet ye, but according to mc cain it aint even a recession yet.|||Forbes is absolutely correct, when the fed comes to the rescue of these buisnesses, all they are doing is, starting up the money printing press and digging a deeper hole for our kids.
Experts are trying to say that the financial markets are much stronger today than it was in 1933, I beg to differ.
ron paul sits on a financial committee seat in congress, he's been warning of whats coming to our economy, he's tried to offer solutions, and basically he's been nothing but ridiculed by media and politicians alike, by the end of november, people are going to wish ron paul was still a candidate for the presidency, but too late now, 2009 will be the year of the Great Great Depression under either candidate.
|||i believe that we are headed to soemthing quite simiar to the crash of october 29, 1929 but thanks to the rever program we should be fine as long as apeople DO NOT PANIC!!!!! you should only be really worried about your bank going under if you have more then the insured amount in your savings. iyou can lose upto $100,000 with the insurance from the goverment but if you have mroe then that move the exiss to differnt bank accounts.
the ressions is spirailling downward and has many simialrities to thecrash of 1929. the comercail debt and loaning debt is to high and people are failing to pay back properly which means the banks are less likely to loan out money so people are less abel to buy things and so the bank must once again loan even less money cuz less money is going around. the morge crisis was just the first indication of something going wrong.
the moradge crisis is proff that the banking in the us is going down ward and many people are losing their homes just like in the 1930's.
before ocotber 29th the federal goverment pushed a big sum of money into the stock market which kept it inflated for just a little while longer (maybe a week) before the true crash. this is following the exact same pattern
just a restatment. yeha were headed towards sometign similar to the 1929 depression and it's headed our way
*edit* this web site contains the credit analise of the us economy pertaning to the future crash, it involes the cause and what must happen right now to weaken the blow:
http://www.thepropheticyears.com/reasons…
this web site also predicts the two possible out comes of this "inflationary depression" they believe that our currency will become worth nothing abd become much like what happened to germany after WWI with taking a wheel barrel of money to by a loaf of bread|||the filthy rich %26amp; the intellegent are preparing for another "great depression". if you want to survive the upcomming "depression" start stockpiling food %26amp; learn to grow your own food (like me)!!! we are in fact heading for another "great depression". if you think i'm wrong... consider this... we are experiencing 1 disaster after another, oil prices are skyrocketing, %26amp; we are at war with too many countries to mention. how can our government pay for all of these things? only 1 way... RAISE TAXES, RAISE TAXES, RAISE TAXES!!! no matter who is running our country, we cannot avoid the upcomming depression.
zig heil King Bush!
have-a-loving-day!
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