Finance Related Suicides Are On The Rise

“…It’s that sense of having the rug pulled out from under them….”

For years we have been conditioned to work, borrow, spend, repeat.  Now with unemployment numbers climinbing a crucial part of this cycle has been removed.  I’ve never been an advocate of suicide but many people feel that leaving their family without financial foundation is the equivalent.

Hyperinflation, Weimar Republic, Martial Law, Peter Schiff Touches On It All

Great discussion with Peter Schiff on the Glenn Beck Show.   Peter touches on Inflation, Martial Law and the Weimar Republic.

777 points — the largest point drop ever…Expect A Small Rally.

While it does seem unlikely I still think that a small rally will take place tomorrow Tuesday September 30th. I don’t think it will last all day I just don’t think that everything is going to fall apart by tomorrow evening. As I wrote a few days ago I’m still not confident at this point that the market is going to make it to the election. Many people online agree and it seems that news sources outside the US see an economic collapse as imminent. Even if the bailout would have passed I doubt it would have done anything to change the course of events we currently find ourselves upon.

When Will The Stock Market Collapse?

I like many have stopped talking about bailouts until there is actually something to talk about.  Once the bailout is completed then I will comment.  However I did see this interesting article regarding the situation.

“What’s being put around behind the scenes is that we’re looking at 1930s stuff. We’re looking at catastrophe, huge, amazing catastrophe. Everybody is extraordinarily scared. It’s going to be really, really nasty.”

You Can Read The Whole Article Here.

Government Plans A Financial Resolution

My prediction on the limited amount of information available is that whatever the government comes up with be highly inflationary. Government tends to have this theory that money will solve everything so if they keep throwing money at this problem it will just go away. Sorry folks it won’t. Unless Paulson and Bernanke can pull some kind of rabbit out of their hats there is nothing else to do but wait for the market to crash. The fact that the market rallied September 18th is proof that the market is looking for any possible excuse to stop the market from falling. I even expect the market to rally on September 19th. Nobody wants to face the fact that a great depression is just around the corner. US economy is like a drowning man these most recent rallies are like his last breaths before sliding beneath the surface of the water forever.

“We’re coming together to work for an expeditious solution which is aimed right at the heart of this problem,” Paulson said.

Six months ago he said that the credit crisis was contained. Oh how things change.

On the plus side if you can buy rental property you can still make a fortune yes even during the coming depression.  People will need a place to stay and not everyone is going to be homeless.  Seriously Forget The Stock Market!!  Buy Up Rental Property!!!!  Forget Appreciation!!! Think Wealth Preservation!!! Think Cashflow!! For Crying Out Loud Just Think!!!!

You Can Read The Whole Article Here.

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– Justin of Vizionkc

Is This The March Towards Socialism?

I imagine that the transition to socialism is slow and unrecognizable. I imagine that the transition while unexpected is often misunderstood by those supporting the change. Just to make things clear here is Websters Definition of Socialism.

1.	a theory or system of social organization that advocates the vesting of the ownership and control of the means of production and distribution, of capital, land, etc., in the community as a whole.

2.	procedure or practice in accordance with this theory.

3.	(in Marxist theory) the stage following capitalism in the transition of a society to communism, characterized by the imperfect implementation of collectivist principles.

$85 Billion Bailout for AIG

Well to be honest I did not see this coming. Its getting scary out there. I still think that the market will hold until after the election but after the election is done with and Obama is in office. The Market will Crash. I mean Crash. Not sure how to explain that better. Take this quote for instance from Don on Active Rain.

“People are now comparing current events to the last depression so what does the 1929 stock market chart say will happen now. The 1929 chart says that the stock market will NOW crash…We have just read that there is great concern Goldman Sachs may go under caused by a proliferation of failing banks. Henery Paulson, the current Secretary Of The Treasury came from Goldman Sachs.”

On the plus side if you have the money I would recommend buying up rental property. Maybe even apartment complexes. People will not be able to get financed to buy a house soon. Maybe some people in the higher up markets 200k+ but I’m not even sure about them. Vacancies are going to fall through the floor. Its going to get tough to find a place to rent . If you own those properties you will be making steady cash flow each month. That will be a major plus since unemployment will go through the ceiling.

“The Federal Reserve said Tuesday night it would lend up to $85 billion to flailing insurance giant American International Group, saying the move was necessary to protect the financial system.”

You Can Read the whole article here.

You Can Read Don’s blog here.

Vizionkc.com

– Justin of Vizionkc

Why Did Bank of America Buy Merrill Lynch?

Great Interview on Gleck Beck with Peter Schiff. Discussion includes why the dollar will fall and an interesting theory on why Bank of America bought out Merrill Lynch.

The Fed Pumps in 50 Billion — That’s Your Money.

So thats a few billion for Bern Sterns a few billion to Fannie and Freddie and a few billion for wall street.  Wow can the dollar stay strong with all this money being printed?  Oh and check out this little quote from the USA Today.

“Brian Bethune, chief U.S. economist at Global Insight, said that without a rate cut to buffer the pain, “The risks to the financial system and the economy are massive. … The economy is very weak. The recession wolves are pounding down the door.”"

You can read the whole article here.

I predict that everything will hold together until after the election.  But once that election is over hold on to your hats were in for a quick market collapse.  The economy is not fine.  The media is not telling the truth.

vizionkc.com

– Justin of Vizionkc

The Market Will Tank Today

As I head to work today I expect the market to fall substantially today.  With Lehman Brothers declaring Bankruptcy and this new information about Merrill Lynch being purchased by Bank of America it would take a miracle for the market to somehow rally.  We have just entered a very scary time in this country.  I wonder if the day before Black Tuesday people felt like I do on this morning.  Could this be Black Monday?

vizionkc.com

– Justin of Vizionkc