Financial Market Fears
Washington, DC, Jan 4th, 2008 -- As we enter a new year there are warning signs in many markets, Auto, Pharmaceutical and Financial being the first three that jump to mind. We have been seeing the Auto industry in a downwards spiral for a long time, and thanks to imported Generic pharmaceuticals nobody notices the impending collapse of Big Pharma. With the Financial market it appears is only a matter of time before we see major breakdowns. Some big names could go belly up before the end of the year.
The predictions I am hearing point to a number of major players being in deep trouble. Some we have known about for some time and others will send shock waves through the economy when their peril is announced by the mainstream media. The problem is that most corporations do not take advantage of early warning political intelligence that points to cracks in the Dam Wall. They would sooner believe in the confidence of a handfull of young graduates who have never experienced bad times, nor know the signs of structural failure. The arrogance of Corporate America is at the root of our financial problems, where innovative "Get Rich Schemes" take priority over tried and tested fundementals. Sadly these schemes tend to multiply under a Republican Administration, especially one which dislikes regulation and oversight.
It's hard to warn about the bad times ahead, when the bonuses are sky high and Wall Street and New Jersey likes a fast talking Go Getting Bull. It's part of the Macho culture. Here in Washington, DC we are supposed to have a totally different analytical culture. But what financial officials say in public, and what they say in private is as different as Chalk and Cheese.
I had an interesting one on one meeting with a world banking leader and he laid out the looming collapse of the dollar, and the mess we will be in until 2012 when we hopefully will be in the clear. That meeting was over 2 years ago. Already there were the signs here in Washington, DC. They were blocked by the White House. Congress just ignored them, being too complicated for the average Pork loving Member of Congress. Keep on pumping money into the War on Terror and keep the printing presses running churning out all the money we will need.
Bush believes that the Saudi's will pump more and more oil for him and drop the price back to $1.50 a gallon before the election. He covered their asses after 9/11 and flew out the bin Ladens, and anyone who was connected to the Saudi terrorists. This is a big game and he is Commander in Chief. Money is for speculation and the more speculation, the more profit there is for the few.
Over New Year I met with several Wealth Managers at functions in Philadelphia and they believe that there are no problems in the economy, and the major financial institutions. They confided that the mortgage crisis is about a small number of minorities who got themselves in debt over their head. Nothing to worry about.
My predictions that there would be 150,000 - 185,000 layoffs in the Financial Sector was greeted with howls of laughter, as the growing economy needs more financial sector employees not less.
I appear to be getting a totally different set of signals than they are, and I hope I am wrong. But many cracks are appearing in the financial sector, and many banks appear far from secure, as brokers would have us believe. Hey who needs political intelligence when you can have a Wealth Manager sell you dreams, and take a huge commission for himself. I wonder if this legal robbery is a better deal than analyzing intelligence with no million-dollar bonuses.
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