Is the financial flood ready to come? Lamech (in the Scripture) lived 777 years. He was Noah’s dad. Plastered all over the New England newspapers was the number- 777. With over one quadrillion dollars in outstanding derivatves (1,000,000,000,000,000), the global financial system is a house of cards and people are scared. The problem wasn’t "newsworthy" years ago as it was building. Those of you who attended the Tabernacles meeting in Phoenix a few years ago heard me speak of the upcoming financial tsunami. This week, four European banks were saved and there are more to come. European banks tend to be secretive about their affairs until the last minute. See: http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3104666/Banking-crash-hits-Europe-as-ECB-loses-traction.html
Nine years ago yesterday, the NY Times published an article that documented the origins of the sub-prime mortgage crisis. Bill Clinton’s Administration put pressure on the banking industry to expand mortgage loans among low and moderate income people, specifically mentioned is Fannie Mae. Fannie Mae had already lowered down payment requirements in order to expand its revenue and profits. See: http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260
Franklin D. Raines, the former CEO of Fannie Mae served as White House budget director under President Bill Clinton prior to his job at Fannie Mae. What a tangled web they weave.
The financial bailout will not bail out anything, it’s only a band aid. The scare tactics presented by Paulson focused on our "retirement accounts". Remember when a change in laws promoted the IRA/401K programs which allowed companies to move away from a defined benefit retirement plan? The U.S. politicians have systematically placed the American people and global community in harm’s way. The Federal Reserve lowered interest rates to artificial lows. This act helped the borrowers and hurt the savers. The generation who lived through the Great Depression are mainly found among the group of savers. They knew what it was like to have no money. They had to hoard anything that might be of use in the future. Many of those who lived in the Great Depression are dying off now. They were like a compass to remind us of how hard times could be. Could we be entering into a Greater Great Depression? By injecting huge amounts of new money into the financial system our retirement accounts will suffer anyway. Why devalue our retirement account any more than it already is?
The same people who got us into this mess want to use our money to bail us (them) out! Every senior executive in the financial industry who received bonuses in the last nine years should write a check and return every dime. Not gonna happen! Maybe it’s time to get into the Ark!