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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (78770)	5/6/2008 5:18:34 AM
From: westpacific	Read Replies (1) \| Respond to of 116555

Great read....Glass-Steagall Act 1999. Once again the investment banks greed will destroy society. In 1999 the government set this up to once again happen. Just an incredible accurate take on what is really happening!!! --- "The collapse of financial markets in the first Great Depression led to the US Congress to enact laws that would hopefully insure that such a collapse would never again happen. To that end, in 1933 the Glass-Steagall Act was passed by Congress and signed into law. Acknowledging the role that investment banks had played in the Great Depression, the passage of the Glass-Steagall Act in 1933 separated investment banking and commercial banking to insure that investment bank speculation would not again destabilize commercial banks as it did during the Great Depression leading to the loss of America’s savings." --- "However, in 1999, the US Congress repealed the Glass-Steagall Act and America was once again vulnerable to the highly leveraged shenanigans of Wall Street. This time, however, it was not only the US but the entire world whose futures were to be bet and lost by Wall Street gamblers. The globalization of financial markets had spread the dangers of US investment banking to banks, insurance companies, and pension funds around the world. Now, the savings of Europe and Asia as well as the US were to be impacted by the wagers of Wall Street who in the 2000s literally bet the house on the possibility that subprime CDOs were actually worth their AAA ratings." -- "Intent is the underlying motive that explains what is about to occur. The intent of private bankers is not public stability, nor growth, nor productivity - it is the pursuit of private profit via the use of public credit and debt. Today, most governments, especially the US and UK, are controlled by private bankers - which is why government policy continues and will continue to favor the interests of private bankers over the public good." Read it all here, just a great read. kitco.com drschoon.com This guy posts some very interesting reads on hit site. He thinks there is no way to avoid the great depression which will run for the decade starting in 2010. Me thinks market bottom no sooner then 2015, I agree with this timeline. Quote: "We will see slowing demand followed by an economic recession leading into a deflationary depression even more severe than the 1930s - this time, money is no longer backed by gold." -we are now in the recession so what is next?