Perhaps you've heard about the strong arming of Bank of America's CEO, Andrew Cuomo, by Ben Bernanke and Paulson over the purchase of Merrill Lynch. These revelations could have serious repercussions, as lawsuits will probably be filed over this. If that happens (and I think it will) it will put all of the other past and present Fed behaviour into a harsh spotlight. Under that scrutiny, future bailouts, which are mostly illegal acts on the part of the FED and the Treasury, anyway, will be much more difficult to do, and that will spell the absolute end for the zombie banks. That moment of reckoning could happen as early as this summer, so with the automakers failing, another tsunami of foreclosures in housing and commercial real estate, and in all probability, the functional failure of most of the biggest banks as well, I think we're going towards the moment when people should have spare cash handy and maybe some canned goods. No kidding.
This could correspond pretty well with the end of the current rally, which means we would start either wave 'C' or '3' down. Both being grim events.
It's only the phony hope of continual, unsustainable bailouts that has kept this financial Titanic (or Ponzi scheme, if you prefer) called the U.S.A., afloat. The end of bailouts means the end of any way to prop this house of cards up further, so expect general and widespread breakdown of most of our systems....I wish it were otherwise...
By the way, go over to Karl Denninger's site, I have it in my links area as Market-ticker.denninger, and look at his recent posting called 'Again: Government Lawlessness'. It's very good.
1 comment:
Mark: well said.
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