Get ready for Bank Crisis II! Today's news tells us that Bank of America posted a massive $1.79 BILLION loss in the last three months of 2008. . . it slashed dividends and accepted a $1.38 BILLION emergency lifeline. Also Citigroup reported total losses of $18.7 BILLION in 2008 . . . $8.29 BILLION in the fourth quarter ALONE! A new phase of bank crisis is beginning. . .soaring unemployment, plunging stocks, cancelled dividends and sinking investment income ahead.
The phrase, speculative bubble, is used to describe the financial tumescence that characterizes the often manic unfounded rise of asset values. The phrase, however, inadequate for it fails to convey the destructive aftermath that follows; for such purposes, train wreck, is a better description. In 2009, the largest train wreck in economic history is about to occur.
Unfounded manic speculation, e.g. the 2002-2007 real estate bubble, is not new. Similar manic speculation occurred in internet stocks in the 1990s, radio stocks in the 1920s, as it did in railroad stocks in the 19th century and in the tulip bulbs in the 17th century. Manic speculation is as human as the markets.
Next time: The famous Dutch Tulip Mania!
Please see my Blog: http://Whysilverandgold.blogspot.com
It ties in with what we are saying here and is very important to your financial well being.
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