As Weiss Research financial analyst Mike Larson says in the latest Safe Money Report:
Despite all the siren songs by Washington politicians and Wall Street fat cats, the facts most Americans can see with their own eyes paint a very different, much darker, picture
- The housing slump has returned with a vengeance ...
- Unemployment is sky-high ...
- Consumers -- 70% of the economy -- are slashing their spending ...
- Despite the Fed's efforts to keep interest rates low, it's actually getting harder to borrow money!
Time after time, you have to wonder WHY there's such a glaring discrepancy between what you see with your own eyes and what everyone is telling you. And the answer is that Washington and Wall Street are lying through their teeth. The bald fact is that nearly everyone we trust to lead the economy or manage our money has serious conflicts of interest -- powerful incentives to make sure you do not know the truth:
- Politicians and bureaucrats need you to believe they're saving the day or they could lose their jobs ...
- Financial fat cats and CEOs need you to believe it's OK to buy their stocks again or their own shares in their companies will crash in value, and
- Rating agencies like S&P, Moody's, and Fitch need you to believe their ratings are reliable or the companies they rate will stop paying them for their ratings, and the agencies themselves will go belly-up.
The fact is, these rating agencies gave the most notorious flops of this crisis their highest ratings, right up until the bitter end: AIG ... Bear Stearns ... Citigroup ... Fannie Mae ... Freddie Mac ... Lehman Brothers ... Wachovia ... Washington Mutual and others all were rated highly.
And because "the customer is always right" ... and their paying customers are the very companies they rate ... you can bet your bottom dollar that nearly all the other ratings they've issued -- especially for the biggest companies that still pay the biggest fees -- are also deeply conflicted.
The disturbing truth behind the hype and happy talk
If the economy is recovering ...WHY ARE BANKRUPTCIES EXPLODING?!
According to the American Bankruptcy Institute, the number of U.S. companies filing for bankruptcy each year has TRIPLED since 2006 and is setting new records this year. PLUS, the number of personal bankruptcy filings is soaring -- up as much as 35% per month so far in 2010!
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