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Financial news I consider important, with my opinion, which is worth as much as you paid for it.
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Sunday, August 24, 2008

A very extreme view of USA situation

I ran across a blog rant of how bad off the USA is positioned. This diatribe is even too gloomy for me to read in full detail.
I recommend you don't even attempt to read if you have sharp objects near you.

The entire diatribe on the "Prudent Bear" can be found here:

My Spin: The information here point to at "best" a flat year next year and at worst, well, read it to see. We are just not positioned for a rebound in the near future, based from this and common sense. USA went on a debt shopping spree starting in 2001 and the party is ending, we are not going to turn this around in a year, or two.

I DO NOT believe everything I read on the internet, I do pay more to the distributed media over the corporate media spin. Look back remember phrases like "contained", "contained to sub prime", "financials have hit bottom", "now is the best time to buy a house" and "Doesn't need to raise capital but doing so to show strength" what? Who are they kidding? Heck, if I took 100% faith what corporate media says, I'd be broke!

And you listened to individual stock picks, wow did you most likely lose out! Cramer recommending DSL, Bear Sterns, Countrywide, Washington Mutual, Centex in 07, almost all have falling 90%+ to below 5 bucks. Numerous recommendations "too big to fail", as we watch Fannie Mae and Freddie Mac shares go to near zero.

Anyway, before I go on my own diatribe, a couple of image bullets as a synopsis from the blog entry from "Prudent Bear".

The most stunning to me is the GDP if you EXCLUDE the money taken out of real estate (MEW Mortgage Equity Withdrawal). This paints a very dark GDP since Bush took office, with artificial inflation through trickery of playing with interest rates.

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