Subprime financial meltdown exploding into other areas and continents – a global financial catastrophe
Karen Zuba
Aug. 4, 2007

The subprime mortgage fiasco is the worst case unprofessional management of money in the history of the world. The hedge funds, private equity funds, investment banks and commercial bank’s threw out the basic conduit of money management – the risk assessment to capitalize on economically slaving poor people to make ‘easy mo0ney’. The whole thing also got support from Federal Reserve under Alan Greenspan through the concept of overlook and do not ask.

The situation far grimmer than one can imagine. When prosperity is based on ‘house of cards without foundation’ the catastrophe is severe. This is exactly what is happening to the financial system. The prosperity in the economy was based on borrowing against home when clearly people could not afford the loan in the first placed.

Now the well-paid financial managers are confessing that they really gambled with clients’ money. The effect is severe. This will be the root cause of depression in the economy and a total banking collapse between 2208 and 2015.

A global financial catastrophe is in process. The worst affected countries will be China, India and other emerging nations. Living in borrowed money has become a norm in those economies. The subprime mortgage meltdown will cause US economies to stagnate in the beginning and get depressed in the later years. But the lower conswumer and corporate demand in America will create massive unemployment in emerging nations like India and China.

The financial meltdown will eventually bring worldwide depression that will stay for many decades.

Subprime financial meltdown exploding into other areas and continents – a global financial catastrophe
Karen Zuba
Now the well-paid financial managers are confessing that they really gambled with clients’ money. The effect is severe. This will be the root cause of depression in the economy and a total banking collapse between 2208 and 2015.
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Pending Home Sales Index Rises 5 Percent in June - real estate bottom may be here
Media Release
The National Association of Realtors said it was the largest monthly gain in more than three years and that increases in pending sales were reported across the country.
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Construction spending is up – builders continue to build in spite of slack in residential real estate – what is the net effect?
Kara Zeilig
The residential real estate market is weak and getting weaker. The effects of the bubble will be evident for decades. But the construction spending is up. That is typical in a sector where capacity has expanded several times in the last several years.
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Lower gas prices boosted consumer confidence – stocks will continue to rally and bonds correct recent gains
Joe Weinman
The economic downturn is evident. But nothing in the market place happens in a straight-line. The consumer confidence index went up because consumers are feeling better with lower gas prices at the pump.
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The financial meltdown has started - prices of credit-default swaps based on the debt imply that U.S. investment banks have junk credit rating
Alan Hershey
The biggest bubble in the history of the world is about to explode. The investment banks and other financial institutions banks promised to provide $300 billion in debt for leveraged buyouts announced this year.
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