Economic Collapse Emanate

Emanate: unseen forces coming out of a specific source.


By Greg Hunter’s USAWatchdog.com

Employers are cutting full-time employees back to part-time to avoid the
requirement of providing health insurance under Obama Care. Trader Karl Denninger says, “As the Obama Administration runs against the economic reality of what they passed, they are now trying to find ways to dodge it. . . . The Obama Administration’s reaction to this has been to unilaterally, and by the way illegally, put off the imposition of mandate.” This is not going to save the teetering economy as Denninger contends, “Bernanke has lost control of the bond market and, in general, his policy. . . . The reality is the Fed is not in charge, and when that confidence level breaks, you are going to see all hell break loose.” Denninger goes on to predict, “We are setting up for a collapse that is going to be worse than 1929, and it’s going to come sometime within the next two years. It could come as soon as the next couple of months, but it is going to happen, and there’s nothing that is going to stop it.” (end watchdog)

Wow, here's a startling fact -- more than 10 million Americans have been evicted from their homes since 2007. That's nearly the entire population of the state of Michigan. Just imagine if the people of an entire state were rendered homeless overnight -- it would be quite a calamity. In February 2007, just before everything fell apart, Goldman Sachs bundled thousands of subprime mortgages from across the country and sold them to investors. This bond became toxic as soon as it was completed. Hundreds of thousands of subprime borrowers are still struggling.

Deals like the Goldman one leave a rich paper trail that includes many details about the loans that were contained in the bond. The numbers are jaw-dropping. Three-fourths of the borrowers in the deal have fallen well behind on their payments at some point, according to a special analysis of the deal performed by the Federal Reserve Bank of Boston. Many of those people have lost their houses or will lose them. Nearly half the loans in the bond have been in foreclosure proceedings since it was issued, according to the Boston Fed.

JPMorgan has lately faced a slew of sanctions by federal regulators. In January, regulators ordered the bank to take steps to correct poor risk management that led to a surprise trading loss last year of more than $6 billion. The Federal Reserve and the U.S. Comptroller of the Currency also cited JPMorgan for lapses in oversight that could allow the bank to be used for money laundering.

About Greg Hunter:

Greg is the producer and creator of USAWatchdog.com. The site's slogan is "analyzing the news to give you a clear picture of what's really going on." The site will keep an eye on the government, your financial interests and cut through the media spin.
USA Watchdog is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.

Greg Hunter