Can You Say Depression? The Feds Can't Quite Do It.....Yet, Anyway

US manufacturing hits 26-year low: ISM
US manufacturing slumped to a 26-year low in November, highlighting the abrupt downturn in the world's biggest economy, a survey showed Monday.

"The worsening credit crisis and deepening global slump have pushed the ISM index below the 41 figure that is consistent with past recessions," said Sal Guatieri, economist at BMO Capital Markets.

"The fact that the index continues to decline points to more than your garden-variety downturn."

U.S. May Be in for ‘Great Recession’

The U.S. economy, now officially in recession, may be in the midst of the longest slump in the post- World War II era as job losses mount and credit dries up.

“This may be referred to as the Great Recession,” because of its length, said Norbert Ore, chairman of the Institute for Supply Management’s factory survey. “It looked like we were headed for a shallow recession earlier in the year because of higher energy prices. With the meltdown in the financial sector, it has become something more serious.”

Mortgage delinquencies shoot up to nearly 4 percent in 3Q, nearly double historical average

For the quarter ended Sept. 30, 3.96 percent of people holding a mortgage were at least 60 days behind in payments, compared with 2.56 percent in the 2007 third quarter.

"It's nothing short of staggering," said Ezra Becker, principal consultant in TransUnion's financial services group. Becker noted the rate had hovered at about 2 percent for years, until the second quarter 2007, when it started climbing.

Moreover, the climb is not likely going to slow, he said. "Our projections are that it's not only going to be increasing but it's increasing at a faster pace," he said. The fourth quarter of 2008 could see the percentage of mortgages past due jump as high as 4.6 to 4.7 percent, he said, an estimate that reflects the recession and rising unemployment rates. "This is more pessimistic than what we would have forecast a quarter ago," he acknowledged.

Breakdown of the Global Monetary System by Summer 2009

The G20-meeting held in Washington on November 14/15, 2008, is in its essence a historical indicator that the Western - above all Anglo-Saxon - monopoly on global economic and financial governance, is coming to an end.
Four key-factors are now pushing the Bretton Woods II (2) system to collapse in the course of the year 2009:

• Fast weakening of the central players: USA, UK
• Three visions of the future of global governance will be dividing world’s largest players (United-States, Eurozone, China, Japan, Russia, Brazil) by spring 2009
• Unbridled speeding-up of the last decade’s (de-)stabilizing processes
• Increasing number of more and more violent backlashes.

The agitation that has seized global leaders since the end of September 2008 indicates that panic has struck at the highest level. Worldwide political leaders have now understood that the house is on fire. But they have not yet perceived something obvious: that the very structure of the building is involved.

The Worst Is Yet To Come
Anonymous Banker Weighs In On The Coming Credit Card Debacle

Today, we are bailing out the banks because of their greedy and deceptive lending practices in the mortgage industry. But this is just the tip of the iceberg. More is coming, I’m sorry to say. Layoffs are being announced nationwide in the tens of thousands. As people begin to lose their jobs, they will not be able to pay their credit card bills either. And the banks will be back for more handouts.

Even Bushie has finally admitted that the economy is in big trouble, acknowledging that we are in a "recession"....of course, this is more than a recession, but the powers that be just can't bring themselves to admit to the big "D" word yet....but, it's coming, and they just make it worse by dancing around the issue. The majority of the American people, even those tuned in enough to see what's happening, don't want to believe it can happen here...but it is happening. Our economy and a good part of the global economy is collapsing. We are in for quite a ride over the next few years.

Economic Desperation Notes of the Day

Grasping at Straws

21/09/08 "ICH" -- - On Friday morning, Senator Christopher Dodd, the head of the Senate Banking Committee, was interviewed on ABC's “Good Morning America.” Dodd revealed that just hours earlier at an emergency meeting convened by Secretary of the Treasury Henry Paulson and Federal Reserve chairman Ben Bernanke, lawmakers were told that "We’re literally maybe days away from a complete meltdown of our financial system.” Dodd added somberly, that in his three decades of serving in public office, he had "never heard language like this.”

The system is at the breaking point, and despite Wall Street's elation from the proposed $1 trillion dollar bailout to remove toxic mortgage-backed debt from banks balance sheets, the market is still correcting in what has become a vicious downward cycle. This cycle will persist until the bad debts are accounted for and written off for or until the exhausted dollar-system collapses altogether. Either way, the volatility and violent dislocations will continue for the foreseeable future.

Government To Steal $15,000 From Every American Household To Bailout Big Banks and Lenders

If someone came into your home and held you at gunpoint and forced you to fork over $15 thousand dollars in cash (provided, of course, you kept such a large amount at home), you’d call the cops as soon as you could, wouldn’t you? In fact, if you had a gun at home, you might even try and shoot the bastards before they could get away with your money. But what happens when it is the U.S. government that is about to break into your house and make off with that much money? Whom do you call? Batman? And yet, that is exactly how much money, thus far, the current round of government bailouts of big financial institutions is costing American households.

The Cost of the Bailout: $2,000 Per Person - WashingtonWatch.com

Bailout legislation that may sail through Congress this week will cost about $6,500 per U.S. family, a little over $2,000 per person, according to an estimate published on the WashingtonWatch.com blog.

Well, things are moving right along lately aren't they? The economy is on its way to an incredible collapse. I saw this coming, but I was hoping for a bit more time to prepare. But I guess my bunch is better prepared than most. How horrible it will be for the majority of people who have been taken totally by surprise. I hate to think of it, hungry children and desperate families. And the perpetrators of this financial mess made trillions over the years, yet they will be bailed out by the tax payer and never be held accountable for the destruction of so many lives.

"Financial Storm of the Century, and the Levees are Breaking"

Roubini: You Should Worry About Deposits

With the "financial storm of the century" hitting financial institutions, many Americans are worried about the safety of their bank deposits. While the FDIC insures individual accounts up to $100,000, the reaction to IndyMac's failure this summer -- lines outside retail branches -- shows Americans have limited faith in the Federal Deposit Insurance Corp., which guarantees individual accounts up to $100,000.

But Americans are justified to be worried, says Nouriel Roubini, of NYU's Stern School and RGE Monitor, who notes there is already a "slow-motion run on retail banks" occurring nationwide.That "run" could accelerate as people realize the FDIC fund has about $50 billion to "insure" about $1 trillion in assets at the nation's financial institutions, says Roubini. "They're going to run out of money" unless Congress acts soon to recapitalize the FDIC.

Be sure to check out the video on the page and hear what this man has to say. The "Financial Storm of the Century, and the levees are breaking".....and where exactly is Congress going to get the money to recapitilize the FDIC? The government is beyond bankrupt, it is trillions in debt, making us more and more dependent on foreign governments, the very ones we continue to antagonize...Russia, China, and the Gulf states....bright "leadership" in this once great country..what a shame. And, through it all, Paulson is still busy reassuring the sheeple that everything is under control...have faith in our economy...with a straight face even...what a joke. Only the beginning folks...hold on to your hats, the worst of storm is yet to come.

Financial Tidbits of the Day

Worsening Credit Markets Cause More Banks To Fail

An increasing number of federally insured banks are on the government's "problem" list as a result of the worsening credit crisis in the United States.

The Federal Deposit Insurance Corp. said on Wednesday that 117 banks and saving institutions were now on the list — the highest number since 2003. At the end of the first quarter of 2008 there were 90.

Fannie's Mudd Shakes Up Management to Boost Investor Confidence

Fannie Mae Chief Executive Officer Daniel Mudd replaced three top deputies in an effort to restore investor confidence after record losses and a 90 percent drop in the shares.

Mudd is seeking to show investors the company is taking action after $9.4 billion of losses the past four quarters eroded capital and sparked concern the company may not weather the worst housing slump since the Great Depression.