June 21 Doom and Gloom: PBS and Scottish Banks

OH-- -- The Royal Bank of Scotland says: (Tivoli!)

Customers should brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.

Well Marketplace will be putting their foot in their mouth:,

Their analysis says there's a chance for Short Selling...against it for profits...
Just stay away... if you need to get OUT, get out NOW, and go into stable BOND funds!
(I should take my own advice!!! and rebalance my 401portfolio too)
** In a sidenote, my 401K portfolio is nicknamed "The Titanic Fund"

Today they said that people might think that the previous (hi tech), and just burst (real estate) bubbles are going to be replaced by the next hot thing and it is (are) infrastructure funds.

Well...

1. The banks are still gonna have TONS of TONS of bad debts on the book they haven't disclosed, (because they haven't seen the handwriting on the wall yet!)
2. The NEXT banking crisis will be NOT the Student Loan debacle, but the CREDIT Card debacle. The increasing levels of DEBT (**and bankruptcies, now caused by the CREDIT card industry) Will lead to increased write offs, and the now common industry practice of "commoditizing" or packaging multiple accounts, will be the second financial market to go up in ruin.

1. once the banks start to realize that all of the consumer debt they carefully raised, packaged, and resold ALSO has no value, the EXACT same crisis as we currently have on our hand with the home mortage crisis defaults will occur in the CREDIT (backed bonds) that they've issued, and we will go through this ONE more time, for ANOTHER 18 months.
2. The ONLY way out of this crisis is for the President (next one, this one will be indicted for treason...and war crimes...), to start to implement my plan to pull the country out of this newly started depression. The banks have to be RE-separated, so that control of the credit markets and the banking industry is again NOT in the same hands.
   

Once the banks go into another round of losses (it's been estimated I believe that THIS first round has currently cost about 40Billion, out of about 300 billion dollars of issued securities), the totals of the first round will have hit 100Billion in write-offs, and the second round of credit card related ones will cause another 100Billion in write offs.

Can the US financial system sustain this??? I really don't think so, without massive assistance.

1. We need a (new) Works Project Administration(2) to employ people and train them
   
2. We need a new Living Wage, to allow people to support their family without three jobs.
3. We need Federally paid SINGLE payer Health Care, phased in over 10 years.
4. We need a New Mandatory Draft, in order to remove the "private armys" created by former defense secretaries.
5. We need a new "manhattan project" scoped alternative energy investment plan, complete with credits, prizes, and incentives for getting this into production faster.
6. We need Nationalized (fed. paid) day care starting at six months to help solve the education (and employment, and "stupidity") crises in our country.
   
7. We need a Federal Uniform Ma/Paternity act giving six months (federally) paid time off for parents to enhance parenting skills.
8. We need a non-military alternative (service) option to the new mandatory draft. A version of training IN AMERICA.

See my other blog posts!
sos-newdeal.blogspot.com

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