Imploding Bubble Economies - by Stephen Lendman
Major media downplay imploding economies.
Economic meltdown comes in stages. Recognition takes longer. Tout TV pundits stay in denial longest, calling crisis conditions a normal correction.
Reality suggests otherwise with US unemployment approaching 23%, home foreclosures multiplying, and poverty levels double or more official distorted numbers that artificially hold them down.
Longtime market expert and regular Progressive Radio News Hour guest Bob Chapman says Eurozone countries are collapsing.
They're "in a state of contagion with six of its sovereign members in serious financial trouble....The creators of the EU, euro zone, and ECB have a failing monstrosity on their hands," an out-of-control debt bomb.- Advertisement -
"There is absolutely no way a financial crisis can be avoided," and it's already been unfolding since 2008. No combination of countries can bail out others in crisis "without destroying themselves. Can 21 nations find $4 to $6 trillion to bail out six?"
Impossible! "Fragile isn't the word for it. Neither is contagion. The operative (word) is abject failure," heading for collapse.
Economist David Rosenberg sees "imminent" Greek default. In mid-September, its one year treasury yield exceeded 100%, telling intrepid investors it already happened for those willing to buy worthless junk.
At a dismal 57.8 reading, University of Michigan consumer sentiment also spells trouble.
In comparison, it was 70.3 in September 2008 when Lehman Bros. collapsed, 81.8 in September 2001 after 9/11, 97.4 in October 1998 after Long Term Capital Management faced imminent bankruptcy and Russia defaulted on its debt, and 89.3 in October 1987 when Wall Street had its largest ever one day decline (22.6%).
On September 16, Global Europe Anticipation Bulletin's (GEAB) latest economic update headlined, "Global systemic crisis - Fourth quarter 2011: Implosive fusion of global financial assets," saying:
Over many months, nearly $10 trillion and 15 trillion in "ghost assets....have gone up in smoke. The rest (and probably much more) will vanish in" Q 4.
GEAB sees a "perfect storm" coming "that will make the summer problems look like a slight sea breeze." Six elements, in fact, already are apparent:
(1) America's congressional "super committee" won't resolve budget austerity tensions.