Can ECB and Federal Reserve stop the financial melt down?
Sam Adelton
Aug. 10, 2007

What we were writing in India Daily for the last two years is finally happening now. Treasury Secretary Henry Paulson and Merrill Lynch & Co. Chief Executive Officer Stanley O''Neal, and Federal Reserve Chairman Ben S. Bernanke were totally wrong.

The subprime mortgage financing fiasco is a total catastrophe. The problem is not those instruments but the derivative surrounding them. It is a conduit of dark cloud in the racing track and all the race drivers are on a total halt. The net effect is total evaporation of liquidity.

The route has just started. For the time being the Central Banks all around the world are rushing in to provide liquidity. Maybe it will reverse somewhat, however the million dollar question is: can Federal Reserve and ECB really stop the avalanche?

The answer most likely is no. The Dow Jones Industrial Average can crash like never before. The commodities can also crash. The economies can come to halt triggering a deep recession and then a devastating depression.

The worst hit will be the banks and financial institutions. Half of them may go belly up with FDIC running for cover to bail them.

A crash in global stock markets eminent after the total meltdown of corporate credit markets across the globe – what can you do?
Alex Brown
First take all your assets, retirement funds out from the stock market and the real estate market. Watch the Federal Government statements. If they provide any hint to bail out the situation, convert your assets from cash to gold.
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Gold can fall a little but after it can skyrocket as Fed signals bail out of liquidity at the cost of doubling budget deficit
Marla Guthrie
Right now gold market is worried for the liquidity crunch but in the long run a golden age is coming for the gold market.
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Countrywide Financial Corp.headed for bankruptcy? Another mega savings and loans bail out?
Peter Oberois
Some analysts believe companies like Countrywide Financial Corp. are headed for catastrophic bankruptcies. The question is will Federal Government bail them out like the saving and loan scam quadrupling the budget deficit?
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Can ECB and Federal Reserve stop the financial melt down?
Sam Adelton
The Dow Jones Industrial Average can crash like never before. The commodities can also crash. The economies can come to a halt, triggering a deep recession and then a devastating depression.
READ MORE>>

Do not trust your bank in the time of this financial meltdown – FDIC protection means little when many large banks fail at the same time
Sam Adelton
We do not know which bank will really go belly up. But no one should trust his or her bank any more. FDIC insurance means nothing at this stage.
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Junk status of investment bank credit status signals the first stage of financial meltdowns
Peter Oberois
What that really means is that the investment banks cannot raise warehouse level mega funds from the credit market to finance deals in the future.
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