We are living in dangerous times, Patriots. The Eurosocialists appear to be at the abyss. Insane spending has driven them to the edge. It is rumored (denied for now) the IMF may have to come up with 600 billion Euros to save Italy. Since the U.S. is big chunk of the IMF, that’s more American dollars flying off to Europe and no guarantee we’ll ever get the principal back. How are we supposed to finance Italy when we can’t come close to covering our own deficit.
Monday, 11-28: Bloomberg
The Fed and its secret financing helped America’s biggest financial firms get bigger and go on to pay employees as much as they did at the height of the housing bubble. Total assets held by the six biggest U.S. banks increased 39 percent to $9.5 trillion on Sept. 30, 2011, from $6.8 trillion on the same day in 2006, according to Fed data. For so few banks to hold so many assets is “un-American,” says Richard W. Fisher, president of the Federal Reserve Bank of Dallas. “All of these gargantuan institutions are too big to regulate. I’m in favor of breaking them up and slimming them down.” Employees at the six biggest banks made twice the average for all U.S. workers in 2010, based on Bureau of Labor Statistics hourly compensation cost data. The banks spent $146.3 billion on compensation in 2010, or an average of $126,342 per worker, according to data compiled by Bloomberg. That’s up almost 20 percent from five years earlier compared with less than 15 percent for the average worker. Average pay at the banks in 2010 was about the same as in 2007, before the bailouts.
Tuseday, 11-29: S&P downgrades banks
After a failed German bond auction last week, it has become clear to everyone that there are no safe houses in the Eurozone. Even the continent’s most powerful economy and export machine is being pulled into the same trench with other profligates. Blaming others and name-calling haven’t spared it.And the outlook for the continent is increasingly dim. We have the first rumors that “Too Big To Bail – Not Fail” Spain and Italy are mulling over holding their hands out for bailouts too because their new governments haven’t convinced markets there will be political stability or “reforms”. And there just isn’t enough cash for that unless digital printing presses roll earnestly in high speed.
Right now wouldn’t be a bad time to lay in some extra canned goods, ammo, drinking water and maybe 10 gallons of bleach. Just in case. With a little luck maybe the reckoning gets pushed down the road a little further, but a painful reckoning is coming. If the Euro tanks, America will not be immune. Be prepared.