Statement from FDIC head to lenders manifests why a financial meltdown is inevitable
Ron Gibson
Oct. 5, 2007

Federal Deposit Insurance Corp. Chairman Sheila Bair urged the sub prime lenders to convert the adjustable loans into fixed-rate products to prevent major housing problems from escalating. But the lenders quietly express their frustration in not being able to do the same.

If the lenders do what FDIC head asked them to do, they will lose hundreds of billions and the financial meltdown will just accelerate. If the lenders sit tight on their loans, the meltdown will happen from loan defaults and foreclosures.

The Federal Reserves and banking regulators are kind of detached from the reality. The loan losses are staggering and it will unfold as we move forward in 2008 and 2009 slowly. The negative impact on the economy is immense.

Quantitative models show the US economy has grown close to 2.9% in the third quarter. But loan losses and sub prime as well as other mortgage losses, foreclosures and default will lower the GDP growth by 1.5%. That means you can expect a meager 1.5% growth in GDP in the forth quarter. The situation aggravates immensely by end of 2008. The GDP can actually shrink by 2 to 4% by the first quarter of 2009.

Emerging economy stock markets are ready for a crash led by International Financial Institutions
Pamela Jones
As oil gets close to $90 per barrel, the International Financial Institutions will pull the plug in India first and then in China.
READ MORE>>

Statement from FDIC head to lenders manifests why a financial meltdown is inevitable
Ron Gibson
Quantitative models show the US economy has grown close to 2.9% in the third quarter. But loan losses and sub prime as well as other mortgage losses, foreclosures, and default will lower the GDP growth by 1.5%.
READ MORE>>

Grains, Gold, and, oil manifesting something sinister – the world economies especially the emerging economies can face hyperinflation
Marla Guthrie
What is more sinister, all the time, the economies went into depression after hyperinflation. The hyperinflation caused financial meltdown. After that the economy has no place to go when Governments do not have liquid reserves to halt the meltdown.
READ MORE>>

Retiring rich and young – it is possible if you look towards the futures and options markets
Peter Oberois
There are mathematically viable conditions where you can bring the odds to your side and reduce the uncertainty to very small in relative proportion.
READ MORE>>

UK and Euro Zone will be hit five times harder than US from credit squeeze – another reason to go long on US Dollar
Fred Day
Analytic models show the sub prime route is not over yet. The tip of the iceberg is just exposed. It seems although, the effect o the mortgage fiasco much heavier on the UK and somewhat larger in Euro Zone that America.
READ MORE>>

The unemployment data shows US economy is still resilient – dollar bears are now caught between two hard rocks
Sam Adelton
The US dollar is poised to rally sharply. The reason is simple. The gloom and doom takes time to happen. The employment data shows that US economy is resilient and has a long way to go before a recession can be called.
READ MORE>>

MORE ARTICLES >>