Bank Failures Dead Ahead

Updated: Sept 23, 2008

On September 22 during an appearance on David Letterman's show, former President Bill Clinton was asked how much money would be needed to help stem the growing mortgage crisis - his answer was "No one knows".

This is the central problem. There is no transparency on this issue. No one knows how much bad debt is being held out there. Estimates run from around one trillion to three trillion or even more. This is clearly a crisis of unknown dimensions.

When Ken Lewis, the Chief Executive Officer of the Bank of America was asked how many of the nation's 8,500 banks will survive the coming wave of bank failures, his response was "about half". What will remain of our economy if half our banks go belly-up.

Former Federal Reserve Chief Alan Greenspan recently remarked that this crisis is "probably a once-in-a-century event."

Banks and brokerage houses that were solid enough to survive the Great Depression of the 1930s are now either collapsed or approaching collapse.

Every area of our national financial picture is mired in debt. From our cities, counties and states to the federal government debt is at or near record levels. Corporate debt and consumer debt have soared over the past few years. Today we're forced to borrow billions each day from the Chinese. Half of that money is then handed over to the Saudis to pay for our oil addiction.

Back to the Letterman show - when Clinton was asked "who would want the job of President these days?" His response was interesting. He felt that this would be an ideal time to become president as the potential downside is so small. Things are so screwed up now that you couldn't possibly make things worse.

Survive and thrive during the coming bad times. Get the facts - there's no other book like it. Order today!

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