Best of the Week
Most Popular
1. Five Charts That Show We Are on the Brink of an Unthinkable Financial Crisis- John_Mauldin
2.Bitcoin Parabolic Mania - Zeal_LLC
3.Bitcoin Doesn’t Exist – 2 - Raul_I_Meijer
4.Best Time / Month of Year to BUY a USED Car is DECEMBER, UK Analysis - Nadeem_Walayat
5.Labour Sheffield City Council Election Panic Could Prompt Suspension of Tree Felling's Private Security - N_Walayat
6.War on Gold Intensifies: It Betrays the Elitists’ Panic and Augurs Their Coming Defeat Part2 - Stewart_Dougherty
7.How High Will Gold Go? - Harry_Dent
8.Bitcoin Doesn’t Exist – Forks and Mad Max - Raul_I_Meijer
9.UK Stagflation Risk As Inflation Hits 3.1% and House Prices Fall - GoldCore
10.New EU Rules For Cross-Border Cash, Gold Bullion Movements - GoldCore
Last 7 days
Bitcoin Crash Sees Flight To Physical Gold Coins and Bars - 18th Jan 18
The Interest Rates Are What Matter In This Market - 18th Jan 18
Crude Oil Sweat, Blood and Tears - 18th Jan 18
Land Rover Discovery Sport - Week 3 HSE Black Test Review - 18th Jan 18
The North Korea Quagmire: Part 1, A Contest of Colonialism and Communism - 18th Jan 18
Understand Currency Trade and Make Plenty of Money - 18th Jan 18
Bitcoin Price Crash Below $10,000. What's Next? We have answers… - 18th Jan 18
How to Trade Gold During Second Half of January, Daily Cycle Prediction - 18th Jan 18
More U.S. States Are Knocking Down Gold & Silver Barriers - 18th Jan 18
5 Economic Predictions for 2018 - 18th Jan 18
Land Rover Discovery Sport - What You Need to Know Before Buying - Owning Week 2 - 17th Jan 18
Bitcoin and Stock Prices, Both Symptoms of Speculative Extremes! - 17th Jan 18
So That’s What Stock Market Volatility Looks Like - 17th Jan 18
Tips On Choosing the Right Forex Dealer - 17th Jan 18
Crude Oil is Starting 2018 Strong but there's Undeniable Risk to the Downside - 16th Jan 18
SPX, NDX, INDU and RUT Stock Indices all at Resistance Levels - 16th Jan 18
Silver Prices To Surge – JP Morgan Has Acquired A “Massive Quantity of Physical Silver” - 16th Jan 18
Carillion Bankruptcy and the PFI Sector Spiraling Costs Crisis, Amey, G4S, Balfour Beatty, Serco.... - 16th Jan 18
Artificial Intelligence - Extermination of Humanity - 16th Jan 18
Carillion Goes Bust, as Government Refuses to Bailout PFI Contractors Debt and Pensions Liabilities - 15th Jan 18
What Really Happens in Iran?  - 15th Jan 18
Stock Market Near an Intermediate Top? - 15th Jan 18
The Key Economic Indicator You Should Watch in 2018 - 15th Jan 18
London Property Market Crash Looms As Prices Drop To 2 1/2 Year Low - 15th Jan 18
Some Fascinating Stock Market Fibonacci Relationships... - 15th Jan 18
How to Know If This Stock Market Rally Will Continue for Two More Months? - 14th Jan 18
Everything SMIGGLE from Pencil Cases to Water Bottles, Pens and Springs! - 14th Jan 18
Land Rover Discovery Sport Very Bad MPG Fuel Economy! Real Owner's Review - 14th Jan 18
Gold Miners’ Status Updated - 13th Jan 18
Gold And Silver – Review of Annual, Qrtly, Monthly, Weekly Charts. Reality v Sentiment - 13th Jan 18
Gold GLD ETF Update.. Bear Market Reversal Watch - 13th Jan 18
Stock Market Leadership In 2018 To Come From Oil & Gas - 13th Jan 18
Stock Market Primed for a Reversal - 13th Jan 18
Live Trading Webinar: Discover 3 High-Confidence Trade Set-Ups - 13th Jan 18
Optimum Entry Point for Gold and Silver Stocks - 12th Jan 18
Stock Selloffs Great for Gold - 12th Jan 18
These 3 Facts Show Gold Is Set to Surge in 2018 - 12th Jan 18
How China is Locking Up Critical Resources in the US’s Own Backyard - 12th Jan 18
Stock futures are struggling. May reverse Today - 12th Jan 18
Three Surprising Places You See Cryptocurrency - 12th Jan 18
Semi Seconductor Stocks Canary Still Chirping, But He’s Gonna Croak in 2018 - 12th Jan 18
Land Rover Discovery Sport Panoramic Sunroof Questions Answered - 12th Jan 18
Information About Trading With Alpari And Its Advantages - 12th Jan 18
Stock Market Investing 2018 - “I Hope I’m Making a Bad Buy” - 11th Jan 18
S&P 500 Fluctuates As Stock Market May Be Topping, Or Not? - 11th Jan 18
SPECTRE Microprocessor Security Flaw - Big Brother = You - 11th Jan 18
7 Market Forecasts 2018 from the Brightest Financial Minds I Know - 11th Jan 18
It’s Not Enough to Be Contrarian - 11th Jan 18
Stocks That Take One for A Roller Coaster Ride Through the Thick And Thin Of Every Single Investment Made - 11th Jan 18
Police Arrest Tree Protester on Meersbrook Park Road, Sheffield - 10th Jan 18
Stock Market Aggressive Sell Signals - 10th Jan 18
The 2018 Decline in Precious Metals - 10th Jan 18
Gold Hits All-Time Highs Priced In Emerging Market Currencies - 10th Jan 18
TMV : 3X Leveraged Short on US Treasury Bonds - 10th Jan 18
Here are the Key Levels in Gold & Gold Miners - 10th Jan 18

Market Oracle FREE Newsletter

6 Critical Money Making Rules

Stock Market Crash is Inevitable!

Stock-Markets / Financial Crash Sep 29, 2008 - 01:41 AM GMT

By: David_Vaughn

Stock-Markets

Best Financial Markets Analysis ArticleWe've heard that before, huh? But this time it is real.

“The US stock market could suffer a devastating crash with shares losing a third of their value this week…” “…a meltdown of 1929 proportions…” “Officials close to Paulson are privately painting a far bleaker portrait of the fragility of the global economy than that advanced by President George W Bush…” “…the message from government officials is that “the economy is dropping into the john.”


“…We could see falls of 3,000 or 4,000 points on the Dow…” “That could happen in just a couple of days.” “We're looking at catastrophe, huge, amazing catastrophe.” “It's going to be really, really nasty.” “This has the potential to make 1929 look like a walk in the park.” telegraph.co.uk/finance

Below is an email I received this last week from a reader.

“Mike M. – “You see I am the person you were talking about. I have lived in a 1200 square foot home for 31 years and I served in the military for 4. I drive a truck for a living, 31years and still going. I live below my means and try to always watch what I spend money for. In the end these people and every single government figure will be held accountable. I wish to God I could put each one of them in the electric chair and just pull the level down for full power. I would personally laugh as each one of them…fried. You say damn this man is crazy; no I am not crazy I just believe in vengeance and fairness. I am sick and tired of a crooked government and a crooked system.”

And what is the average sentiment of our congressional leaders at this moment?

“For the most part, it seemed lawmakers were afraid to vote for the bill, yet afraid to vote against it.” usatoday.com, 9-25-2008

We witnessed a few years ago Enron, WorldCom, and other CEOs with failed companies. But those fellows were small potatoes to AIG, Meryl Lynch, Lehman Brothers. These large banking and insurance institutions understood the measure of the risk they were taking on these past 5 years. Or are we to understand that these Ivy League whores are just stupid?

“Lehman Brothers Chief Executive Richard Fuld…took the blame for the company's staggering second-quarter loss…” "This is my responsibility…" aol.co.nz, 6-17-2008

And how was Lehman Brother's CEO rewarded for his admitted responsibility?

“…Fuld (Lehman Brothers CEO), a 30-year veteran of the once-venerable Wall Street investment bank that filed for bankruptcy protection…was awarded $22 million…” forbes.com, 9-15-8

And a few years back?

“In the 40 years that Richard S. Fuld, Jr., 60, has been with Lehman Brothers, he has seen the Firm undergo many changes…” “…Fuld's leadership abilities stand out.” "Real leaders earn the right to lead," Fuld said…” “…Fuld was named to Barron's "World's Most Respected CEOs" list in 2006…” harbus.org, 10-16-2006

And what can we say about the largest US bank failure?

“Washington Mutual collapses in biggest bank failure in U.S. history” haaretz.com/hasen, 9-26-2008

Were there any internal warnings within Washington Mutual sending out red flags a few years ago?

“… Washington Mutual was careless, analysts say. The company failed to integrate a number of rapid acquisitions fully and didn't build sufficient room into its financial plan to weather an expected drop-off in mortgage lending…” “…that's meltdown time ." marketwatch.com/news/story/failure-heed-rate-warnings, 6-24-2004

But, hopefully, the CEOs were being prepared financially so that they personally would not experience Washington Mutual's coming failure! Thank the good Lord as this seems to be the case!

“Washington Mutual, the largest U.S. savings and loan, reduced Killinger's ( Washington Mutual CEO) total compensation…$5.25 million from $14.2 million in 2006.” “Killinger's salary remained the same at $1 million last year to maintain the tax deductibility of his full salary…” in.reuters.com/article/governmentFilingsNews

Let's hear now about the new CEO who has replaced outgoing Killinger and how much this new dude will make at Washington Mutual as the new CEO.

“Golden parachute for Washington Mutual CEO” “ Washington Mutual's new CEO Alan Fishman -- who had been on the job a measly 17 days -- was paid nearly $20 million in the last month .” “That includes a $7.5 million bonus when he was hired Sept. 8. And it includes a mind-blowing $11.6 million cash severance now that the company has gone under. That's on top of his base salary -- a cool $1 million a year. Plus, he was eligible for annual bonuses worth up to 365 percent of his base pay.” “ All this while the company was posting billions in losses. (Yesterday, it became the biggest bank failure in U.S. history…) “ Read over all that again -- and explain to me why something doesn't need to be done about CEO compensation .” dallasmorningviewsblog.dallasnews.com, 9-26-2008

Why isn't the general public and lawmakers automatically jumping and demanding President George Bush's 700 billion recovery plan? For over 20 years the American public has been trained to always look for that magic silver bullet. Folks, there are no more silver bullets.

“How did things go so badly? The simple answer: greedy, fat cat investment bankers who used these complicated derivatives no one could understand to leverage themselves, make tons of money at the expense of the typical mortgage holder, and who will never experience any down side from their profligacy.” economist.com, 9-23-2008

These “Masters of the Universe” that created this chaos will ultimately down the road profit in some way off of the very mess they created. It always works that way.”

“Despite steep declines in the performance and stock price of the three companies, Mr. Mozilo (CEO of Countrywide Financial) , Mr. O'Neal (Merill Lynch CEO), and Mr. Prince (Citicorp CEO) were rewarded generously.” “… Mr. Mozilo (Countrywide CEO) received over $120 million in compensation…” “Also Mr. Mozilo (Countrywide CEO) received over the past 5 years a total of $391.88 mil.” “…Mr. O'Neal (Merrill Lynch CEO) departed with…$161 million…” “…Mr. Prince (Citicorp CEO) was awarded a $10 million bonus, $28 million in unvested stock and options, and $1.5 million…upon his departure from Citigroup.” oversight.house.gov 2008 & forbes.com

Ready to throw up yet folks?

These mega bankers are the elite of the world and will remain so. Whatever seeds of corruption they plant for others their personal harvest will still be bountiful. The banks rule the world. Even when this depression finally sets in for real these worms will ride the surf, smile and profit.

“…the Mortgage Banker Association is here for the banks, not the people.” “They would throw your grandma under the bus as they foreclose on her home and kick her to the curb in a heart beat.” loanworkout.org, 1-20-2008

The following below is a good explanation and summary written by the venerable Gary North. Well worth reading and absorbing.

Gary North, lewrockwell.com/north, 12-19-7 - “This is the domino effect. The subprime mess cannot be contained. It is like an untreated cancer cell. It will spread.” “If they (banks) knew about the fraud, they should have to buy the bonds back.” “…this bubble is like no other in my lifetime. It is tied to housing, and the entire Western world has been affected.” “ The economic losses are gigantic and will grow .”.” “…has sucked in the best and the brightest people on earth, those who allocate capital. They trusted Alan Greenspan. They trusted artificially low interest rates. They trusted fiat money. That trust has been betrayed, as always. But this time, it has been betrayed on a scale that puts the world's banking system at risk . The bailouts have only just begun.” Gary North, lewrockwell.com/north, 2007

But don't you worry folks. The perpetrators of this financial crisis will be guaranteed to profit as I stated earlier.

“Golden parachutes here to stay” “…those hoping for an end to golden parachutes - the large pay packages that top executives get when they leave a company - may end up disappointed.” "We're not abrogating contracts," said a Treasury official who briefed reporters Sunday.” “Another Treasury official said that even future golden parachutes could be paid…” CNNMoney.com, 9-28-2008

By David Vaughn
Gold Letter, Inc.
David4054@charter.net

© Copyright 2008, Gold Letter Inc.

“The Worldwatch Institute, an organization that focuses on environmental, social and economic trends, says the current rate of global demand for resources is unsustainable.”  

The publisher and its affiliates, officers, directors and owner may actively trade in investments discussed in this newsletter. They may have positions in the securities recommended and may increase or decrease such positions without notice. The publisher is not a registered investment advisor. Subscribers should not view this publication as offering personalized legal, tax, accounting or investment-related advice. The news and editorial viewpoints, and other information on the investments discussed herein are obtained from sources deemed reliable, but their accuracy is not guaranteed. © Copyright 2008, Gold Letter Inc.

David Vaughn Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

David Gragowski
05 Oct 08, 15:34
stocks crash

This is the prediction for the share market....Good Luck!!


RICHARD F SHEPHERD
06 Nov 08, 05:03
STOCK MARKET CRASH 2008

JUST THINK WHEN THIS HAPPENED .... WHEN BUSINESS GOT THE MESSAGE THAT OBAMA WAS LIKELY TO BE ELECTED PRESIDENT ... THE DOW STARTED TO LOSE VALUE. BY 5 NOV THE DOW WAS DOWN 40% AND ON 6 NOV THE DOW WENT DOWN MORE THAN 5%. GET IT ?

ITS A MATTER OF CONFIDENCE. BUSINESS KNOWS WE'RE ENTERING A NUCLEAR WINTER FOR ENTERPRISE ... AS OBAMA IS SURE TO BE PRESSURED TO SAFEGUARD SUB-PRIME MORTGAGES AT THE EXPENSE OF THE DREADFUL INVESTORS. FRIENDS .. IT IS THE END. GET OUT WHILE YOU CAN


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules