The Financial Markets are Melting

::: Transcribed from personal myspace blog account:::

It's happening - The mortgage market is now coming to a standstill, as the largest lender in the U.S. is about to file for bancruptcy protection. Will the Fed let that happen? We'll see...

Bottom line is, with CFC coming to a close, this will cause thousands to be laid off. The refinancing of a property is now coming to an end because it'll be near impossible to do. ARMs coming due will not be able to be refinanced and those people will walk away from their homes or get foreclosed on. All of those people that have used equity loans and lines to buy investment properties are going to see their properties cheaper than ever thought possible, and when you're upside down around the million dollar mark, it doesn't matter how good your credit is, you'll feel the strain. Soon, banks will see defaults on their A paper, banks will be at risk, laying people off left and right to salvage their financials, and this will lead into a huge meltdown of the world economy.

What I have predicted in the past is becoming more and more evident, but the scary thing is that it's playing out a whole lot faster than that I anticipated. I expect us to be in a recession by the middle of next year, and the depression to hit, obviously 3 periods after that. But, this is going to be bad with millions of people out of work, and major banks going under. This is because all of the financing that banks have taken up and incurred are going to be defaulted since these people are going to lose thier jobs and not pay. When it comes to survival, credit scores aren't a big deal.

In the end, it'll get better as the stronger currencies of the other countries around the world will help boulster our economy with exports increasing to levels not seen since the 60s. This will cause a manufactering boom, and keep people employed, but at substandard living. There won't be anymore families purchasing a half million dollar home on credit with stated income. It'll be renting a small apartment, if they used to be home owners, or owning a small home.

Granted, this is all speculation that the fed keeps interest rates where they are. Who knows... It may change! But, at this point, the roaring 00's are over! The teens will be known as the GD2.