Warning! Economic collapse is now imminent!

...WARNING! WARNING! WARNING! WARNING! WARNING! WARNING!

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Financials Collapse Timeline: 3/14/08 Bear Stearns collapse .... 6/2008 Multiple states sue Countrywide, Bank of America acquires......7/11/2008 Indy Mac Bank fails....9/7/2008 U.S takes over Fannie , Freddy......9/15/2008 Lehmans goes bankrupt, Bank of America acquires Merrill Lynch.....9/16/2008 U.S. takes over AIG....9/19/2008 record bailout proposed..... 9/25/2008 WaMu bank fails......9/29/2008 Wachovia Bank goes under........10/4/2008 bailout finally approved by house.....DOW loses almost 3,000 points in 18 days, to close just over 8,500.................Complete Systemic collapse, Bank of America insolvency next?????.........

UPDATED 10/9/2008

On 9/21/2008, this website made the prediction that we would see DOW 8000, or much worse, in a very short time. The DOW had previously closed at 11,388.44 when the prediction was made. On 10/9/2008, the DOW closed at 8579. That's an almost 3,000 point decline in about 18 days, since the prediction. Today, 10/10/2008, the DOW intraday hit 7,882. The prediction has officially come to pass, in a total of 19 days. Simply put, the bailout is just bad for the economy, and most people see that.

Now we could see DOW 6,250 immediately, and much, much worse. Where do I get 6,250? We have no means of incoming capital to support any bottom; just exiting international capital dealing with their own global crisis. This is being evidenced in the bond market "dislocation" on 10/7 and 10/8; with stocks down, and yields up when they should be dropping. This trend signals an overall lack of faith in government debt. In 2003, the DOW was just over 7500, and in 1995 it was at 4000. I think we need to get back to before the "money is debt" credit system became over inflated. Averaged, that's about DOW 5250 to 6250 to start looking for a true bottom. We could see a temporary "bounce", or rally in the stock market off this huge sell off 10/10/2008; but things have progressed all year as one step forward, two steps back. We can expect this rally to fade even faster than the Bear Stearns "parade"... which fizzled in a matter of a few short months.

Upon the realization of what's happening, thousands of wealthy Baby Boomers could make simultaneous bank runs, in a scramble to salvage what's left of their retirements. The financial system will then have no safety net, after all the bailouts of the "intra-networked" banking system members. Much like the Titanic, the rich get off the boat first. We've seen who gets bailed out, and who doesn't. Regular investors aren't exactly a priority for the Fed and the Corporations... neither are their own stockholders!

Millions of average Americans with bank accounts in US banks may not see their money for months. FDIC reimbursements, even though at $250,000 now, would require extensive money printing if too many banks get run. Payments may get delayed, because the government will be insolvent. By the time you get your money, it will have lost 20% or more of its value from monetary hyperinflation. The markets will respond violently to this tact by the Federal Reserve, and stocks will plummet and gold will skyrocket. Raising the FDIC to $250,000 doesn't increase the governments ability to back up your money! It is a purely psychological ploy to prevent mass, concurrent bank runs.

Interest rates are going down, not up. Where is the motivation to keep cash tied up in a bank anyway? If you have money in Bank of America, remember that now they are taking on an investment house mentality, with the Merrill Lynch acquisition. Historically, once these people know where your money is, they use that knowledge against you, so they can make money (or worse, save their hides). Their corrupt shorting of long term investors has been especially blatant this year.

Bank of America & the Titanic...unsinkable?

Bank of America consumed Merrill Lynch, excessively overpaying. Merrill Lynch had astronomical losses to come on their books compared to analysts estimates. Case in point: The estimate for Q2 2008 was LOSING - 1.91 a share. The actual loss? An unthinkable - 4.97 per share! So the analysts were off 67%! How about Countrywide: They lost -.79 in Q4 2007 and -1.60 for the first Quarter 2008! Then Bank of America took them over, compounding their exposure to the financial collapse. B of A paid the market price, when Countrywide was facing an impending bankruptcy. Their analysts don't seem to have any idea how deep this crisis goes, yet they are encouraging these purchases? These guys may know banking, but their education is not helping their business prowess.

With these brilliant new acquisitions, Bank of America inherits an Investment house that has lost all consumer trust, now has complete loss of credibility, and no longer has services to offer regular investors. The average investor has discovered that these guys really don't know what's going to happen. Buying Merrill Lynch is like buying an old champion racehorse, then having it drop dead just after you pay for it. They got burned. The problem is systemic, and these analysts can't even see that. They only see a speculative valuation based on past principles of potential earnings. But what were earnings then have now disintegrated into unfathomable losses, and there's no going back.

That's just the corrupt stock brokers network that Bank of America inherits. What about B of A's board of directors? They are apparently being prodded by greed, using outdated earnings fundamentals... and have clearly over weighted the advise of educated fools speculating on a full recovery. Why would they pay a premium for an investment house, when people will have less money to invest? Why take on a worthless loan portfolio than may take a decade or more to recover, or than includes unseen toxic debt?

Upon the news of the acquisition, investors began their run out of Merrill. The business plan for Merrill Lynch is basically to charge several hundred dollars a trade for no substantial investment advise; and to "create" investment derivatives so watered down and complicated there is virtually no real equity in them. Look at Countrywide; Probably a majority of their loans are 2004 and later. Prime fixed rate mortgages that hadn't been written down when Bank of America acquired them are now under water enough to justify a "walk away". Countrywide has a near worthless loan portfolio, and now B of A gets all the property taxes, HOA fees, utility assessments, and other long term liabilities... all with a crawling foreclosure rate and record housing inventory.

This year, the mentality of the Government, and B of A, is that of speculator. But these markets depend on the wealth of the people, not that of the elite... and the people are getting fatigued. Furthermore, these entities seem to be relying heavily on taxpayers, where 2009 revenues from taxes figure to be well below previous years. It is clear they are realizing they made the wrong decisions, and they will eventually expect the taxpayer to bail them out. Problem is, the taxpayer is tapped out. There's nothing left to exploit, steal, and pillage - except current long stock holders equity; which is part of the reason stocks have sold off below 8,000.

One has to assume there is some agreement between the government and Bank of America that would encourage them to acquire these ultra risky, failing companies... all of which serve only to weigh them down with losses. Problem is, the government may not have the capital to bail them out if the taxpayers refuse another bailout! I just hope B of A considered that before making these highly speculative and risky acquisitions. We are well beyond the philosophy that, "everything goes back up eventually...". We are now in uncharted waters.

Bank of America: The new standard of American finance? No...this will be the next major US taxpayer bailout! This of course would not be made public until the damage is done, and once Bank of America is declared insolvent, the ones that created this economic collapse will be floating slowly to the ground in their golden parachutes... while the middle class investor suffers in paralysis.

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But why are things really going to get bad? Any recovery will reflect all the hyperinflationary measures taken by the Fed this year to save themselves. That means when housing and stocks finally do recover, the residual inflation will be so ruinous and destructive that the dollar will collapse. The extreme 'exponential function' trend the US has undergone since 1999-2000 will be violently exacerbated by the recent record government bailouts and resulting necessary monetary hyperinflation. Observe the graph below:

This is called the "Exponential Function"; and it generally reflects US inflation, population growth, commodities prices, and many other measures. Please note this is how it all looked BEFORE the year of the massive bailouts of 2008.

The dollar strength and apparent deflation we've seen the last few months was but a correction; and now the trend will turn ruinously against the dollar as the trade is abandoned into stocks on wall street. Expect many traders to read between the lines and buy up oil and gold; rally in commodities. Bush-Paulson's major banking debt bailout of 700 billion will only give the US a massive liability, with millions of newly acquired homes that need monetary upkeep, maintenance, and management.

With little to no GDP production and global economic slowdown, matched with epic monetary inflation, stocks and other manipulated assets become the governments only fiscal leverage against the trend; before they start thinking about pulling money from citizens' bank accounts (Argentina).

Judging by the irrational and unethical actions of the Fed and Government, one can only conclude these guys have a master plan. The market's were up 800 points in 2 days 9/17 & 9/18 on the bailout. It is clear they want everything to appear just fine, they don't want the open markets to suspect their impending plans. They already have their golden parachutes, they are CRASHING THE PLANE. They know our national debt is now UNPAYABLE...

The Exponential Function" theory is introduced by an economist named Chris Martenson http://www.chrismartenson.com/ , who has devised an entire program that focuses on this topic. Another excellent blog you should visit daily is the Housing Time Bomb. Both are updated daily, and ultra bearish. Click the link so you can see his updates on the state of the economy. Please watch the entire program, as the reasons for my dire warning are based in no small part on the concepts he has already provided. Find a far more detailed explanation of the Exponential Function Generation at his website to understand the conclusions He has drawn, and that I agree with.

The most important point that needs to be driven home is that the collapse will occur very suddenly, and without warning. This is the nature of the compounding: The most "action" is at the end of the trend, and it is very slow leading up to it. I think we can conclude that we as a nation are approaching the close out period.

What's the end game? Probably preparation for the introduction of a new currency to replace the dollar. Why have troops returned from Iraq, and begun "domestic training exercises" for the event of civil unrest? "The games chess, it aint checkers". The government wants all the pieces in place before this new currency is forced down our throats...

What is the Amero? Is this the currency that will replace the U.S. dollar? Is our government plotting this now, with the troops being prepared for domestic martial law to prevent civil unrest? Is our Treasury set to declare "Force majeure"...meaning the Government "walks away" from all responsibility for its debts? There is reason to be concerned: Offsite links: What is the Amero? What's happening now?

Allegedly, 800 Billion Amero's have recently been shipped to China from the United States. Our foreign debt holders are already aware of the dollar collapse, and are being given the new currency. We can expect more of the same fear tactics from any administration to force the currency upon us.

There is no turning back now, the implosion will be very sudden and very, very bad; get out, exit the system while you still can.......and please, try not to boot heel any little old ladies while your runnin' for the exits!...

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Disclaimer: These articles are provided for entertainment purposes only and are not meant to provide investment advice to anyone. Please consult with your professional financial planner for investment advice. Disclaimer continued at page bottom, see Home Page...

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