Friday Update: US Markets Continue Freefall

as to why the market jumped so high today? Does anyone know what may happen tomorrow when the bond market is open again?

bounce.

Just an educated guess.

Do not take my word for it.

WAHOR!!
http://www.dailypaul.com/node/48994

keep falling

I recently started to think of and make a list of major events that have occurred during my lifetime that have made a huge impact on the world or on me personally. Many of the worst things have happened in the last 7 years.

What events have had a major impact on your life? (No fair listing "Ron Paul" because that's pretty much a given)...

Message was:

- Here's how the mortgage meltdown fragged other stuff.

Mainly:
- Insuring the bundled mortgage securities with default swaps {to bring their rating up to AAA} was a market bigger than the gross world product. When housing prices dropped and the subprimes started to default lots of institutions that had "written the policies" had to pay up and ended up cash-strapped.
- Meanwhile the uninsured ones dropped in value and similar institutions which had used them as collateral on heavily-leveraged investments (10:1, perhaps parlayed with REleveraging THAT) got margin calls. More liquidity gone and assets selling off into declining market to cover obligations.
- So that's what started killing financial institutions that you wouldn't expect to be exposed to the housing industry.
- Then nobody with money would lend it - for ANYTHING - because they were scared they'd lose the principal. This locked up the credit markets and broke all sorts of stuff.
- Example: The auto industry: No auto loans, car sales tank by a factor of several, dealerships are are paying interest on the price of the cars while they sit on the lot so dealerships fold. People out of work, not buying anything or paying THEIR bills, etc. Repeat in many other sectors.

- But stocks go up and down, and people's mood leads them to sell at the bottom and buy at the top. So now (Yesterday) looked near the bottom.

- There are good days even in a bear market and missing them cuts your return.

- So rebalance your portfolio and hang in there. And keep buying stocks because they're a bargain due to the drop.

Yeah, right. And they carefully cut the great depression off the left side of the stock market graph so it just showed the long climb with the occasional small dips, rather than the big hole that took a decade to climb out of.

And they didn't have any way to buy gold or silver in the plan. (Not even a metals fund. "But we have this 'natural resources' fund that's full of mining companies." In a credit crunch, when the ore is pricey but there's no operating cash? Tell me another.)

I apologize up front for how long this is.

As I mentioned before, all this talk of crisis has me thinking of an article from 2007. It's worth reading again, and we'll get to it below.

At the risk of also sounding alarmist, let me throw this in the mix.

A perfect storm may be brewing as I have mentioned before. A few years ago Bush and his cohorts started down the road to a North American Union with very little mention from the media. You would think such a thing would be front page news, but alas, most people have never heard a thing. Why not?

Around that time talk of a new currency, the so-called "Amero" started springing up, but again, received very little coverage except from a few good people like Lou Dobbs. Sounds like Euro, doesn't it? Again, even today, very few people who rely on The Times, Foxnews, or CNN have ever heard of such a thing. Why not?

I suggest it is primarily due to the fact that the public would not support such moves. If an NAU or Amero was to come about, it would have to be timed perfectly.

Of course, this reminds many people of the "timing" surrounding many liberty-stealing bills and measures passed post-9/11. When you do a little research, you find that a number of the horrific bills and directives initiated after 9/11 were actually up for consideration before 9/11 and failed miserably - including what came to be known as the Patriot Act, the grand-daddy of all heinous Acts. Why didn't you hear much about these things before 9/11? Simple. The timing wasn't right. It took the fear-mongering surrounding that tragedy to make the sheep give their consent to just about anything and everything, which is exactly what they did. But that is for another post.

A financial collapse could be the 9/11 that brings about things like the NAU and Amero. I know it sounds "crazy" but just for a moment, think about this. If there were a globalist plan to unite North America, and ultimately, the world, under one government, what would the next step be? You have secured the legality of virtually every dictatorial power necessary to run that government (have you ever read the Acts and Directives since 9/11?). Now all you need is one people to govern. An NAU was formally, though quietly, introduced a few years ago, but those taking temperatures told you the time was not ripe. The same thing goes for the Amero. So, what would you do? Well, nothing brings the people together like a good tragedy.

If you ever wanted a good tragedy, the recent financial fallouts are just the ticket. Think about this. The people opposed this bill nearly ten to one. 10 to 1! The Congress voted it down and the Dow fell 777 points (as it should have, I might add). The media and the higher-ups used this decline to scare (fear-mongering?) the people and the Congress, telling them that if they didn't pass a Bailout soon, everything would collapse. The Senate, who certainly don't represent any of the people, decides they will pave the way and now it is back on the Congress. Long story short, a $700 billion dollar, 100 page bill that was too much for Congress to pass the first time around, turned into an exponentially more expensive, nearly 500 page bill, full of earmarks and pork that was apparently more palatable.

The result? Instead of a 777 point decline to around the 10,500 mark, the Dow has free-fallen to near the 8500 point mark and is still falling with no sure end in sight.

Interestingly enough, the fear tactics didn't work on the people this time around. They still opposed the bill and saw it for what it was. But our Congress, cowering in the face of "experts" wheeled-in for the show and giving into bully-tactics, decided they knew what was best for the people they apparently represented. Case in point, consider this quote from a letter I received from my Representative, Gary Miller:

Many of you have expressed opposition to the financial rescue package and are disappointed that I voted for this legislation. However, as you Representative in Congress I always strive to do what is right and best for Americans, even if it is unpopular."

He is completely aware that the public, the people he apparently "represents," opposed this legislation 10 to 1, yet he justifies his vote by saying that he strives to do what is best for Americans. That is not his job! His job is to represent the people of his district and it would be hard to find an issue where the people's choice was more apparent than regarding the bailout.

If that was not bad enough, if I may be allowed to wander a bit, he goes on to appeal to Bernake and Paulson:

Secretary Paulson and Chairman Bernake have warned that the economy could suffer badly if Congress does not swiftly pass legislation to address the financial markets crisis. Not listening to their warnings proved to be dangerous, as evidenced by the over $1 trillion loss in the stock markets on September 29th. Doing nothing is a gamble, and quite frankly rolling the dice with our economy is not a gamble I am willing to take.

Wow! Did you catch that? First, I didn't vote for Paulson or Bernake. Second, who exactly are we taking our marching orders from? Think about it. Finally, and again, your job is to listen to and represent your constituents! Bernake and Paulson have no idea what they are talking about. They, at best, are trying to salvage a game that has been played according to the wrong rulebook for decades without actually throwing that bad book out. At worst, they are perpetuating an unconstitutional and fraudulent Federal Reserve system that is a primary cause of the fall of our economy and ultimately our country. These are not the men we should be listening to. They certainly don't represent the 90% of the people who spoke out against this bailout. Apparently, they do speak for the Congress.

So the bailout bills passes and the market is now in a free-fall. Now this sounds like a crisis. And here's the thing. Anyone with a head on their shoulders, if they are honest, knows that the bailout bill will kill our economy in the end, and despite what it may sound like, I do not think the people in Washington are stupid. This means that it is entirely reasonable to think that the people who pushed this bailout through knew exactly what would happen. This is when things start to get really scary. It is also the moment I just lost a number of my readers because now we have ventured too far into the land of "conspiracy." The problem is, you got here one reasonable step at a time and you know it.

Let me add at this point, that I am not promising you that this is the way things are or that this is the way things are going to go down. What I'm telling you is that history shows this is nothing new. What I am trying to get across is that, to whatever degree, something is wrong. It is time to start putting aside labels such as "conspiracist" and the rest and realize that, whether the problem is something as obvious as Congress not representing the people or as "crazy" as an orchestrated move toward a North American Union, we must unite and fight. We all agree that something is wrong. We have to stop the name calling and infighting and get back to holding our government accountable.

Of course, if you really want some "conspiracy," here's the kicker. Is this financial crisis the "national emergency" that will finally lead Bush to cancel national elections and enthrone himself indefinitely? Now that sounds crazy, but it leads me back full-circle.

Go read this article from 2007 by Harvey Wasserman and Bob Fitrakis at the Online Journal entitled, Will Bush Cancel the 2008 Election?

Alarmist? Perhaps. But whether you fear an elitist globalization plot or are simply frustrated with Congress, we are all on the same team. We need work together, stop the name-calling, and work for change. Time is of the essence.

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The vox of dan -
Before the Face of God
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