"It's not going to get fixed. There's going to be another crash. The commercial real estate bubble hasn't burst yet. That's going to burst. The credit card debt is so huge right now, it will never be repaid. That's a house of cards waiting to fall. So the crash of '08 is going to look like coming attractions. And we're in for a much, much worse time. That's how I honestly feel."
The last crisis didn't start in America, it started in the UK. Before the problems in America there was the issue with Northern Rock. Subprime loans, bank lost liquidity, government bailout. This all happened about half a year before the crisis started in America. Investors saw what happened in the UK and realized that American banks had similar problems, therefore they started to invest against American banks, which made it harder for them to get cash which led to the well known consequences.
Investors who did the right moves at the right time made a fortune through the crash.
They have learned from that and are currently doing the same again, only one step bigger.
They are no longer investing against banks, they are investing against countries, especially Greece.
They have financial problems, because of the last crisis and might go bancrupt which currently inflates the prices of their cash insurances. This creates a vicious circle. Greece has to pay more for credits, people "bet" that they have to pay more for credits, therfore Greece has to pay more for credits... If you would have started about half a year ago to "bet" on Greece bancruptcy you would by now have doubled your money.
A bancruptcy of could either lead to the end of the Euro, or if Greece gets "bailed out" by the rest of the EU it can lead to attacks against the other three PIIG states (Portugal, Italy and Ireland who have similar financial problems as Greece, even though not as bad yet). It looks like the banksters will keep investing against the Euro, until it dies. This will lead to financial chaos and a situation that will make the last crisis look really idyllic.
It seems the worst is yet to start.
"The first thing Fascists usually try to do is silencing the opposition."
by
opposition on
03/03/2010 11:21:51 AM EST
