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

I always find it rather comical how the T.V. pundits try to down play the heavy things that Peter says.  Take notice how even mentions the very taboo topic of how America is supposed to be a Republic not a Democracy.  He even touches on the lack of foresight of politicians and cutting off entitlement programs such as social security and medicare.   Notice how quickly the direction of the interview changes towards the end once the the anchors realize they let Peter say to much.

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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.

“The party is over,” said Peter Schiff, president of Euro Pacific Capital. “The current financial storm represents the death throes of the old global economic order, and perhaps the birth pains of a new one. The sun is setting on the borrow-and-spend culture that has all but defined us for a generation. … The sooner we come to grips with this, the better.”

You Can Read The Whole Article Here.

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– Justin of Vizionkc

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.

If the stock market does crash I imagine that the ATM’s would be turned off immediately. Stores and gas station would be packed with panicked shoppers trying to get supplies. Food, water, and gasoline would quickly become short on supply. Surely the government is aware of the difficulties facing us and according to a few articles I’ve found online some troops are being brought back to the US to prepare for civil unrest.

Might be a good idea to keep a few hundred dollars in small bills in your house. Maybe grab some cases of water. Things are happening quickly and I’m afraid the majority of people will once again be taken by surprise.

Article on Bailout Rejection and Dow Jones Point Drop.

Article on Troops Preparing for Civil Unrest in the United States.

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– Justin of Vizionkc

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.

The government is effectively rewarding these companies for being fiscally irresponsible and setting them up to do it again. In other words they are giving these companies cash and the companies are giving the government the same loans that caused them to need a bail out. How does thats solve anything?

This bill will be passed. When it does we will own the toxic loans which caused this problem. Are we really this stupid? No. Well maybe yes. If you consider heroin addicts stupid. Because thats what we are. We are credit addicts. We need that credit. We crave that credit. These bail outs are effectively us shooting up. Eventually this will end. We will have to go through with drawl. And it will be the worse kind of with drawl. Forced.

“The Bush administration is asking Congress to let the government buy $700 billion in toxic mortgages in the largest financial bailout since the Great Depression, according to a draft of the plan obtained Saturday by The Associated Press.”

You Can Read The Whole Article Here.

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– Justin of Vizionkc

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.

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