25 Signs That The Financial World Is About To Hit The Big Red Panic Button

[Feuer Frei!]

Most of the worst financial panics in history have happened in the fall. Just recall what happened in 1929, 1987 and 2008. Well, September 2011 is about to begin and there are all kinds of signs that the financial world is about to hit the big red panic button. Wave after wave of bad economic news has come out of the United States recently, and Europe is embroiled in an absolutely unprecedented debt crisis. At this point there is a very real possibility that the euro may not even survive. So what is causing all of this? Well, over the last couple of decades a gigantic debt bubble has fueled a tremendous amount of "fake prosperity" in the western world.

But for a debt bubble to keep going, the total amount of debt has to keep expanding at an ever increasing pace. Unfortunately for the global economy, sources of credit are starting to dry up. That is why you hear terms like "credit crisis" and "credit crunch" thrown around so much these days. Without enough credit to feed the monster, the debt bubble is going to burst. At this point, virtually the entire global economy runs on credit, so when this debt bubble bursts things could get really, really messy.

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[CaptainMattJ.]

well i didnt need an article to tell me this. Everyone blames america, as people always have recently, but honestly its not just our fault. And its not just our crisis.

and its not a surprise things have gotten this way. this isnt a democracy. Its a round table of kings that control the whole show. Congress has the most power in this "checks and balance government". The president may get a say in it, and he may be completely ignored, and hes always the one who gets the blame. Obama is blamed for no improvement in our condition, when congress has been running the show all along.

And who pays these politicians to vote for bigger breaks for the top guns? The top guns. In return for large sums of money for their personal life and advancement in the political power they so desperately desire, the politicians wont vote for closing loopholes, or improving things for small buisness and the middle class american.

Back in the 1800s and 1900s, Small buisness and thousands of individual small companies were the backbone of America. Then, those who prospered more then others started buying out the competition. When your one of the only guys in the buisness, you get big, big bucks. Such as the 3 top guys in the food industry at the moment.

The top 3 in food have practically deplorable facilities and low maintenance farms and have no real competition. very few individual farms prosper. everyone else has contracts with guys like Tyson. Tyson then keeps them on a financial leash, forcing them to get expensive unnecessary upgrades and lord over them with the debt.

Or the wall street Banks. THe wall street banks made an astronomical gamble in the late 20s, and look what happened. same thing today. They took a rediculous gamble in real estate, and we paid the price because WE had to bail them out and they ended up screwing us over.

Capitalism isnt working. Because those at the top do everything in their substantial power to keep themselves at the top. If that means everybody else goes down, so be it.

[mookiemookie]

Real reliable and reputable source there. The economy is indeed headed for another recession, but can't you find more level headed and rational commentary than that?

[AVGWarhawk]

#1 According to a new study just released by Merrill Lynch, the U.S. economy has an 80% chance of going into another recession.

We never left the recession started 2 years ago.

#3 European bank stocks have gotten absolutely hammered in recent weeks.

All stocks across the globe have taken a beating in the recent weeks.

#5 Credit markets are really drying up. Do you remember what happened in 2008 when that happened? Many are now warning that we are getting very close to a repeat of that.

The credit markets were bone dry in 2008 and have remained so. Can't repeat what has not changed in 2 years. For substancial credit today you need a stellar credit report.

#17 German voters are against the introduction of "Eurobonds" by about a 5 to 1 margin, so deeper economic integration in Europe does not look real promising at this point.

Come on Skybird. Join the crowd.


The article has not really stated anything new or financial issues that have been plaguing the financial world for the past two years.

[mookiemookie]

Originally Posted by AVGWarhawk

We never left the recession started 2 years ago.

No. The last recession ran from December 2007 to June 2009. It's been an extraordinarily weak recovery, but that's the norm after recessions caused by credit crises. Further constraining recovery has been the abysmal housing market. It was so overbuilt in the boom years that the overhang in inventory and ill-advised government programs designed to artificially prop up inflated home values has made it an uphill battle for prices return to equilibrium levels.