Peter Schiff on Obama and the Economy

This is one of the few interviews with Peter Schiff were he actually discusses Obama.

The End of Easy Money.

Unfortunately for the United States the rest of the world is wising up.   They are beginning to realize that we have borrowed more than we can ever pay back.  So now they are saying no more.  And we’ve been cut off.  Our days of living beyond our means are quickly coming to an end and Americans will have to start doing the things they hate most…saving their money and living beneath their means.

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.

Administration asks Congress for $700B for bailout. Is Anybody Seeing This? WTF!

As was predicted the government has once again decided to throw money at a festering soar in our economy. Between this and the ban on short selling this is really starting to sound an awful lot like socialism. The glaring problem with this plan is that the government is anticipating making money off of these toxic loans they plan on purchasing. Wrong! If these loans were income producing the banks would keep them for themselves. The only reason they have to sell these loans to the government is because they are so toxic that nobody else wants them. These loans that the government is buying with our money will never be paid back. The assets these loans are attached to cannot even be sold on the market for the value of the debt.

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.

Worst Market Day in 7 Years.

As was expected today was a horrible day in the market. I don’t expect a rally tomorrow. We are in the storm for sure now. There is no longer any stopping it. I have been skeptical about saying this out loud but I really do believe that hundreds of bank will fail very quickly after the new president ( Probably Obama for Obvious Reasons) takes office. Even if by some fluke McCain was to win hundreds of banks will still fail. It seems to me that our debt based consumer driven economy is finally being exposed for what it is…worthless.

“The upheaval in the American financial system sent shock waves through the stock market Monday, producing the worst day on Wall Street in seven years as investors digested the failure of one of its most venerable banks and wondered which domino would be next to fall.”

You can read the whole article here.

On the plus side…if you have the money to buy up property especially rentals than your about to make a killing over the next for years. After all people have to live somewhere. And if they can’t buy they must rent.

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– Justin of Vizionkc