I have been warning many of my family, friends and readers about this pending financial market meltdown for years – and now it finally looks like it’s upon us.
If you are just finding my blog, in search for answers to this market meltdown, here are some of the articles from the last few months. You can read more of our articles on the Archives page.
Despite what the majority of the financial media continues to say, this is not a temporary decline in the markets. The money that has been lost is not going to be quickly regained and many of the Wall Street investment firms will need to be rebuilt. It could take ten years to rebuild, as the economy tries to adjust to the massive change from the current 70% consumer driven economy to something else.
I don’t know for sure how much further the market is going to drop. It may hold for a few months until after the presidential elections. It could drop very fast or it could drop slowly, I have no idea. I’m not an investment broker or a legal financial planner, so please contact a licensed professional before making any financial decisions.
What I do know is that the government is primarily to blame for this disaster as they tried to plan the economy with ultra low interest rates and intervention in the mortgage market with the creation of the (monopoly like) government backed organizations of Freddie Mac and Fannie Mae. It is these organizations that are at the center of the crisis.
In the very near future, the congress and the administration will need to cut government spending like there is no tomorrow.