What happens when large banks start failing after Dow reaches 5000?
Sunita Zaveri
Mar. 18, 2007

The run on the bank is not very pleasant. The panic in the public is catastrophic. Analytics manifest signs of massive problems in the economy. The stealth deflation is getting stronger every day. The huge ballooning budget deficit and the massive private loans are the root cause of the deflation.

It is likely that by third quarter the real GDP will be negative. By another six quarters, the GDP will start falling 3% or more. The large commercial banks will start failing by 2008-2009. Dow can reach 5000 or lower by end of 2010.

Some think tanks wonder what will life be those days?

< FDIC that insures individual deposits will itself become insolvent. It can only support three large bank failures. Federal Reserve will have zero percent fed funds rate. The long bond however will yield more than 4% due to increasing budget deficit and Asian Central Bank’s selling of Treasuries.

The house prices will have collapsed 70 to 80%. The unemployment will rise far above 20%. In the financial services sector seven out of ten people will be out of job. Investors will go after the corporate CEOs for their losses. The real estate, stock, bonds and futures brokerage will come to an end. Trading will move to the Internet entirely

Declines industrial metals and oil show the deflationary downtrend in stock markets and economies
Neal Sunders
The oil is takes two step backward and one step forward. The industrial metals and alloys like copper, steel and others are slowly retreating from a parabolic top.
READ MORE>>

Can Dollar crash now? What is the effect on world stock markets and economies?
Jaren Zuba
That will create a massive financial meltdown in the world economies. The exporters to US will go bankrupt. Japan and China will be worst hit. Indian outsourcing industry will end its existence.
READ MORE>>

What happens when large banks start failing after Dow reaches 5000?
Sunita Zaveri
FDIC that insures individual deposits will itself become insolvent. It can only support three large bank failures. Federal Reserve will have zero percent fed funds rate. The long bond however will yield more than 4% due to...
READ MORE>>

China signals a trend by challenging Airbus and Boeing in commercial aviation – the country will not allow any western goods and services into its territory in the long run
Preeti Singhani
China plans to build its own commercial jet liners and reject Boeing and Airbus monopolies. China has been recruiting American Chinese engineers and secretly performing R&D on manufacturing big commercial jets.
READ MORE>>

Stealth deflation has trapped the Federal Reserve into a scenario where no matter what the economy will get depressed and stock market collapse
Peter Oberois
According to some analysts, 40% of the people will default on their loans and mortgages in the next five years. The home prices have already declined 10% from their peak. It is likely to go down by another 60% in the next ten years.
READ MORE>>

Economy headed for massive depression - 1.5 million more Americans may lose their homes, another 100,000 people in housing-related industries could be fired
Sam Adelton
The effect is far bigger than the dot com bubble. The biggest problem is that the subprime mortgage defaults are now spreading fast into regular mortgage sector.
READ MORE>>

MORE ARTICLES >>