The Economic Boom,Enjoy It while it Last!

Ben S Bernake..the US Federal Reserve Chaiman

"The subprime industry has been contained.It turns out to be contagious & the 2 trillion not backed by govt-sponsored agencies is at a standstill.That's just the beginning."

Housing created a lot of ancillary economic activity & jobs & now we are in the reverse pocess...says Paul Kasriel,chief economist at Northern Trust Corp in Chicago & a former Federal economist.

THE MARKET BUBBLE.
(1979 - 1983) The federal Reserve induced recession,every period of economic "growth" under the monetarist system has been a bank created bubble.
(1980 - 1987) The buyout-acquisition-merger bubble ending in the stock market crash & later the recession which lasted the entire term of President George H.W.Bush.
(1990's) The Dot-com bubble under President Clinton ending in the 2000 - 2002 recession.
(2007) Under George W.Bush...the housing bubble...the fraud infested subprime market. Equity-asset bubble,with an overpriced stock market setting ever new records.

The current market crash and meltdown , are they being syncronise events and man-made agenda....!!!! Are they a pre-planned counter-strike to test the vulnabilty of the financial system of each countries around the world.?

Let's see what the next speaker has to say.



Henry Paulson,US Treasury Secretary.

"warn of a major economic slowdown on July 23,2007"
article in Fortune by Rik Kirkland entitled "The Greatest Economic Boom Ever;Enjoy It While It Lasts"
His remarks came in the context of assessing the ability of the high-leveraged equity,hedge & derivative markets to withstand the shocks to come."We haven't had a global financial shock since 1998.I believe that these large & dramatic increases in private pools of capital in the credit derivatives markets since then have help manage & disperse risks & make the economy more efficient.When we do have one-and it's when,not IF.That's not me being negative.It's just that we're not going to defy economic gravity- we'll be seeing for the first time now some of these instruments perform under stress."The fate of the global economy depends in large measure on the ability of the US consumer to buy what the rest of the world produces.The economic fundamentals continue to move in the wrong direction.


William Poole:President of the St Louis Federal Reserve bank said:-
'The subprime mortgage rout doesn't threaten US economic growth & only a "calamity" would justify an interest rate cut.He also said;-"No one has called up and said that the sky is falling"The comment suggest a reduction at or before Sept 18 meeting.

So you mean the market will keep falling till the Fed announcement?...........u got to be killing.The current stock market doldrum is forcing u to give the answer right away....if not all of us will sink like the titanic! Do or die.!

Today in History

On August 16th, 1896, gold was discovered in the Klondike.
In 1812, British forces foiled plans for a U.S. invasion of Canada by capturing the city of Detroit.
In 1896, the North Country gold rush began with the discovery of gold in the Klondike region of Canada's Yukon Territory.
In 1939, New York's famous vaudeville house, the Hippodrome, closed after 34 years.
In 1948, baseball legend Babe Ruth died in New York of cancer at age 53.
In 1977, Elvis Presley, the king of rock 'n' roll, died of heart failure at his home in Memphis at age 42.
In 1987, a Northwest Airlines jet bound for Phoenix crashed on takeoff from Detroit Metropolitan Airport, killing 156 people. A 4-year-old girl was the sole survivor.
In 1990, U.S. naval forces were ordered to prevent ships from reaching or leaving the ports of Iraq and Iraqi-occupied Kuwait.
In 2004, as many as seven helicopters were pressed into service to rescue hundreds of flood victims stranded on roof and car tops near Cornwall, England. Rescue workers called the situation "horrendous." In 2005, a magnitude 7.2 earthquake hit northern Japan triggering a tsunami alert along the Pacific coast.
In 2006, authorities in Bangkok, Thailand, arrested American John Mark Karr for the widely publicized 1996 slaying of JonBenet Ramsey, a 6-year-old beauty queen from Boulder, Colo. Karr publicly confessed but said it was an accident. He was later cleared of any involvement.
Also in 2006, flooding in Ethiopia, which already had killed hundreds and stranded thousands, spread across the country as more rivers burst through their banks.