Large investment banks and commercial banks can go bankrupt in the next several years fighting the bubble effects of mortgage, real estate, leveraged mergers, and acquisition
Karen Zuba
Aug. 6, 2007

What is happening is that Bear Sterns is not just unique to them, but an industry trend. The losses from bad investment decisions, loans to leveraged buy out deals, hedge less hedge fund operations, irresponsible commercial, and residential real estate mortgage underwriting and some of the many reasons why the banks are in deep trouble.

We wrote in India Daily that a 100-year and 40-year banking cycle topped simultaneously. Cycle tops always manifest total craziness on part of banks. They forget their conservative approach to managing finances. In massive mega cycle tops, investment and commercial banks start ‘gambling’ with their money.

This time that is exactly what happened. The banks are now getting the shock of their lifetime. The cycle down is here. It is just a matter of time before large investment banks and commercial banks go bankrupt in the next several years fighting the bubble effects of mortgage, real estate and leveraged mergers and acquisition.

Do not trust your bank in the time of this financial meltdown – FDIC protection means little when many large banks fail at the same time
Sam Adelton
We do not know which bank will really go belly up. But no one should trust their bank any more. FDIC insurance means nothing at this stage.
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Junk status of investment bank credit status signals the first stage of financial meltdowns
Peter Oberois
What that really means is that the investment banks cannot raise warehouse level mega funds from the credit market to finance deals in the future.
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Large investment banks and commercial banks can go bankrupt in the next several years fighting the bubble effects of mortgage, real estate, leveraged mergers, and acquisition
Karen Zuba
Cycle tops always manifest total craziness on part of banks. They forget their conservative approach to managing finances.
READ MORE>>

The common household faces worst financial nightmare – crashing home prices and free falling equity prices – how do you protect against the financial meltdown?
Sondra Huffington
The biggest question is what can you do to protect yourself from the catastrophic financial meltdown started by the collapse in several bubbles in the system at the same time?
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Housing bubble takes a new dimension as builders now accelerate discounts and incentive – net effect is severely low real estate and equity prices
Susan Hicks
In recent weeks the builders have become extremely bearish. The capacity utilization in the residential new home building sector has dropped very slightly. The anomaly is significant and bearish for the stock market and the real estate market.
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Massive buildup in inflation pressure in the commodity front and stagnating productivity – the first signal of long term bear market in stock market
Sam Adelton
The rise in CRB index in recent weeks confirms that the stock market is headed for a long-term bear market.
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US dollar and Japanese Yen at a bottom?
Marla Guthrie
With rising Chinese Yuan against US Dollar, the trade deficit will improve in favor of America at the cost of Chinese trade surplus. China will eventually import more from US and export less to US. The net result is stronger dollar.
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