“The sky is falling the sky is falling” is a quote that has come to mind over the past two weeks as we have seen major corporate big dogs like AIG, Lehman Brothers and Merrill Lynch all hit the news with announcements of bankruptcy, restructuring, bail out loans and whole sale buy outs. Let us not forget the FED taking over the Freddie and Fannie mortgage companies as well. The big dips in Wall Street keep on coming and it does not look like this wild ride is even close to ending as more banks and corporations are scrambling to find ways to stay a float either through mergers, emergency loans or restructuring.
So how did we all get here? Most are pointing their fingers to the condition of the housing market as it continues to spiral downward with no apparent end in site. Let’s face it the 10 years prior to 2006 when the housing market finally peaked were an incredible ride for most as the rise of housing prices seemed to be unstoppable and everyone and their friend down the street were getting a mortgage. That last part of that last sentence is a big part of the reason why we are where are today as “no doc loans” and any other kind of wheel and deal loans were flying out the door as long as the price of home kept going up. Of course when the housing balloon popped in 2006 it was already too late the damage was done as these big companies were heavily invested in all these securities that were paying big dividends at the time.
Now here’s what I see as the really scary part of this whole financial cluster F that going on in the US. The Federal government our leaders of state, congress men, senators and president are the one’s we are turning to help guide us through this storm. Helloooooooooooo does anyone notice that these people that are driving this ship are the same people that have a rung up over $10 TRILLION dollars of debt to other countries??? As a government they are bleeding out billions of dollars every month! Doest this scenario worry anybody else? Please share your opinions and thanks for reading.
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