Back on November 27th I wrote a story titled “The Worst Is Yet To Come For US Financials“. The story was accompanied by the following mortgage reset chart courtesy of Bank of America:
The “don’t worry, be happy” crowd at CNBC and other financial media refused to report on the true size of this debacle and chose to amplify “self-interested commentators that are itching for the US Federal Reserve and Congress to bail them out” (from Information Arbitrage).
Nonetheless, me and many bloggers who are not conflicted by the mainstream stuck to our guns and continued to do our best to warn investors of what we could see coming over them hills.
Well it’s officially over the hill and coming straight for us, with this Bloomberg story quoting both Goldman Sachs and UBS AG that credit losses will hit $400 – $600 billion respectively.
If you think the answer is simply cutting interest rates, then you are new to the blog and I forgive you. Please read my January 3rd post titled “Checkmate Coming For US Fed“. In fact, read all my posts in my $1,000 Gold Category.
The Axeman cometh, there is no stopping it now. All you can do is pay him off with gold coins in your pocket. Don’t have any? Get some. They’re still cheap at just $US 985/oz.
Regards,
George