I donít have to tell you how awful things are. People all over the world are frightened.

Many are panicking. Most are confused and donít know where to turn for guidance or help with their money and their future.

Since January 1, 2008, stockholders of U.S. corporations have suffered about $8 trillion in losses, as their holdings declined in value from $20 trillion to $12 trillion.

Homeowners will soon see their equity down by as much as $8 trillion, and those losses are likely to increase.

The currency markets have been in turmoil as the carry trades unwind viciously and in a most terrifying manner.

Hedge funds ( that turned out to not even understand the meaning of the word ďhedgingĒ) are going out of business and liquidating like there is no tomorrow. They cannot survive with returns they haveósome in excess of minus 50%. Thatís a very huge ouch.

The media continues to feed us with hope that things will get better.


How comforting that the price of oil has gone down and we now have a silent tax savings.

Yippee. That is small consolation for those people who are losing their jobs. The unemployment numbers from last week were ugly. October showed a loss of 240,000 jobs. To add insult to injury, the negative revision to August and September increased these losses by an additional 179,000. The economy has lost 1.2 million jobs since December, with over half of those losses in the last 3 months. While two-thirds of the losses are in manufacturing and goods production, the service economy is also starting to show signs of strain.

At least two trillion dollars have disappeared from the IRAs and savings accounts of millions of hard-working Americans.

People are fearful because they now know that they can no longer trust their elected officials to protect them from harm.

Itís one thing to spend trillions fighting a war in Iraq to keep the ďhomelandĒ safe. Itís quite another when people have to make a decision between eating and buying needed prescription medications.

Old people are eating cat food because they do not have enough money to eat and buy their medications.

Meanwhile, the gangster bankers are being paraded before Congress, exposing their greed and arrogance.

How about that Dick Fuld? What a performance --and can you see the greed slithering all over him like a greased pig? They will get a slap on the hand and their 15 minutes of public humiliation before they slither back to their desert islands and palatial estates. Why should they be held accountable for running their companies into the ground and losing billions for their shareholders and employees while they lined their pockets and walked away with hundreds of millions in Golden Parachutes?

Stephen Colbert called Jim Cramer ďa prophetĒ for saying that the Fed knew nothing when everyone said he was nutso. People are now telling Nick Russo and me that we are brilliant for warning them about The Big Rollover, beginning in 2005 when no one wanted to listen and they told us we were even more nutso than Cramer ( and that, my friends, is a whole lotta' nutso!)

Europe is in complete turmoil, and the fate of the euro hangs in the balance. Milton Friedman said that the euro would not survive the first recession and it is possible that he is about to be proven right.

Pakistan is going bankrupt.

Iceland, once a safe haven for all things banking, is now closed for business.
Icesave's owner, Landsbanki, was nationalized and put in receivership.

The capital of Iceland is Zero. Inflation in Iceland is now close to 16% and rising.

Furious British customers were told they faced battling through two different compensation schemes to get their money back.

Between the 300,000 of them, they have 5 billion British pounds in Icesave.

European banks are at risk of losing $75 BILLION on the Iceland default.

Ask yourself how you would feel if you logged into your online bank account and saw this message?

We are not currently processing any deposits or any withdrawal requests through our Icesave internet accounts. We apologize for any inconvenience this may cause our customers. We hope to provide you with more information shortly.

http://www.icesave.co.uk/

We have reason to believe that Argentina, Pakistan, Hungary, Romania and Belarus are in trouble.

The Federal Reserve is being sued by Bloomberg News under the Freedom of Information Act. The Federal Reserve, aka, The Creature From Jekyll Island (thank you G. Edward Griffin for your fabulous book!) is refusing to identify the recipients of almost $2 TRILLION dollars of emergency loans that they picked from the pockets of the American taxpayer. The Federal Reserve is also refusing to identify the nature of the ďtroubled assetsĒ they are accepting as collateral.
So much for transparency.

Meanwhile, the financial capital of the world has moved from New York to Washington, D.C. We have a new governmental structure.

Yes, we have a new imperial structure with Emperor Henry at the helm. Itís that same Emperor Henry that took his $700 million when he left Goldman Sachs, and is now dumping this $820 BILLION package of debt into the laps of each of us---the American taxpayer. We also bow down to Emperor Henry for appointing a 35 year old clone of his from Goldman Sachs to manage our money. And- by the way, Emperor Henry will be leaving soon, taking his and some of our money with him. Asked who would be a good replacement for King Henry, our two major candidates suggested Warren Buffett or Meg Whitman. Howís that for a choice between the lesser of two evils?

In any case, the foxes are now guarding the chicken coop, and we are the chickens.

Do you think for one minute that we will ever see one cent of that money returned to us?

As we predicted publically in early 2007óObama has been elected. This was been predetermined by history and chronicled in brilliant detail in The Fourth Turning by Strauss and Howe.

Now, the die is cast and we have elected to the highest office in the U.S. an individual that will try to clean up the major mess we are in.

Rather than Commander in Chief, he will be forced to assume the role of Janitor in Chief.

We are facing a depression that will rival that of the Great Depression of the 1920ís and may more closely resemble the Greater Depression of 1873.

There are going to be stock market rallies within this bear market, and that will be the time for those still holding and hoping to get out before the bear really begins to claw in 2009

snip.....................read the rest
http://www.financialsense.com/fsu/ed...2008/1121.html