>By Don White
If you think we have turned the corner on bailouts and financial crises, think again. We have just seen the tip of the iceberg, according to insiders. Just consider the latest eerie news on things that are happening or going to happen to your dollar, to your retirement, to your ability to survive in these troubling times:
- Being a former insurance executive I know we haven’t even scratched the surface of the insurance imbroglio. Assets are being driven down while liabilities are going sky high. We will never have enough reserves to pay for everything insured. Insurance companies are about to suck this economy back into crisis. They’re getting hammered from sinking assets, with almost no way to pay their guaranteed annuities to their customers. This could make AIG look like small potatoes… And we’ve just talked about life liabilities. What about accident and health? And what about the property and casualty side of things? Just wait. . .
- Commercial real estate is about to blow. It’s financed by $3.1 trillion in debt – and the delinquency rate just doubled to $724 billion. And this is just the tip of the iceberg…
- Bernanke is handing out another $1.5 trillion to banks and other failing companies. Total bailout money now exceeds $13 trillion. Where’s the money coming from? The Fed’s printing presses. Inflation, baby, it’s coming down hard.
- And get this… According to the Bank for International Settlements, the value of all derivatives (including toxic credit default swaps) now exceeds 683.7 trillion. If we were to spend 100% of the worlds annual GDP ($56 trillion) on the problem, it would still take 12.2 years to unwind everything. But forget that. We can’t use up every other nation’s GDP to cover President Obama’s stupid decisions. Forget that. And he continues to take these expensive “dates” to see a Broadway show with wife Michelle at about $350,000 each when the rest of us must tighten our belts. A ruler like that is not a public servant, he either believes he king of America or that money falls from the sky. In reality, Barak is a raving lunitic with a mission to lower taxpers to the same paltry poverty level and lower America among nations to the poorest of the poor.
And if that weren’t enough to raise the hairs on your back… Homes foreclosures are unending… Unemployment is still rising… Banks may need another $500 billion to stay solvent, according to the IMF… Corporate earnings are hitting all-time lows… And a loan of any kind is still harder to get than a Popsicle in the Sahara…
Government can’t spend us out of this mess. Senator Judd Gregg of North Carolina said today on Fox TV that spending is the real culprit. The answer is not printing new dollars because that ignites hyper-inflation. The answer isn’t borrowing more money. China refuses to lend us more money because our credit rating is about to drop from AAA to the high B’s. To put this in perspective, we now are worse off than Britain, that socialistic country we all used to talk about. Based on fund borrowed compared to ability to pay it back the Brits are at 50 percent. America is worse off than that — yes the greatest country on the face of the earth, or the one that used to be that — is at 58 percent. Is it any wonder no one has any solid answers.
One wrong move and this bear market can slap down your gains in a single day – and leave you reeling for years to come. Or even worse… Fail to move and you could miss the biggest gains of your life.
One mistake in either direction could leave your retirement dead as a door nail.