- In 2008, Americans will wake up to the worst economic
times that anyone alive has ever seen. And they won't know what hit them.
Gerald Celente, 17 December 2007
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- THE PANIC OF '08: CODE RED - PROTECT YOUR FUTURE
NOW!
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- RHINEBECK, NY 14 July 2008
-- The "Panic of '08" that we had predicted is "ON."
Only the blind can't see it, the deaf don't hear it and those in
denial won't admit it. America's economy has taken a direct hit. The nation's
financial superstructure is collapsing. Those waiting for the "official
word" and hesitating to take survival measures will go down with
the sinking ship of state.
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- The Economic 9/11 that we had warned would "topple
corporate giants" and "crush the man on the street" hit
on Friday. (See "Economic 9/11," Trend Alert, 12 November 2007;
"Economic 9/11" Top Trends 2008, Trends Journal, Winter 2008.)
While an economic terror strike was long in the making and the devastation
long predicted, the financial markets melted down and panic hit the Street
on the news that the nation's two largest mortgage finance companies, Freddie
Mac and Fannie Mae, were on the brink of failing.
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- The dollar resumed its downward slide, gold sharply reversed
its three month slump and oil rose to record highs on the threatening economic
news and word that Israel was practicing bombing runs over Iraq in preparation
to attack Iran. The Dow - before paring some of its losses on a late in
the trading day rumor that the Fed would open its discount window to keep
feeding Mac and Mae with needed cash to stay afloat - had fallen to
a two year low on Friday.
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- Hours after the markets closed on the East Coast, and
with the nation gearing up for another summer weekend, most people
were tuned out when IndyMac Bancorp officially went belly up at 3 PM PST.
Had the news hit while Wall Street was in session that the second biggest
bank failure in US history was under way, calamity would have ensued. Instead,
the out-of-touch missed the news and the ever-hopeful believed Uncle Sam
would save the day.
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- Baby Talk
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- Despite calls from the business media and politicians
from both parties for government intervention to rescue the failing institutions,
there are no bailouts, buyouts, quick fixes or magic remedies that will
save America's economy from going under. The formula is simple and the
outcome predictable: The more money the government prints to cover the
multi-trillion dollar losses, the weaker the dollar gets. The weaker the
dollar gets, the higher inflation goes. The higher the rate of inflation,
the more it costs to live. With wages going down and unemployment going
up, the poorer the nation becomes. Americans will be facing the worst
economic times in living history, and so too will much of the world.
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- There is NO WAY OUT. While Washington may devise some
tricky monetary maneuvers to temporarily stop the bleeding, as they did
to keep Bear Stearns from going bankrupt this past March, there is nothing
that anyone can do that will stop the economic hemorrhaging.
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- Editor's note: Claims by market analysts, politicians,
special interests and the generally interested that media and pundit "hysteria"
is "unnecessarily inflaming market fears" are overstating the
power of persuasion and understating the causes and effects that have created
the current economic climate. More than homegrown pessimism and personal
negativity, it took decades of destructive business and government policies
and years of greed and corruption to destroy the world's largest economy.
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- Trendpost to Profit: Some $1 billion of uninsured deposits
held by 10,000 IndyMac customers are now trapped and federally seized.
Since FDIC only insures deposits of up to $100,000, holders of accounts
with larger amounts under one social security number (business and/or personal)
may consider dispersing funds to safer havens.
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- We predict a continuing spate of banks, businesses, and
brokerages going bust (See "Panic of '08," Top Trends 2008, Trends
Journal, Winter 2008). As events continue to spin out of control
- and considering draconian measures that have abrogated constitutional
rights under the guise of fighting terror - we forecast that the "little
people" will be forced to pay for costly government rescue plans to
save the "too big to fail." A dollar devaluation, a repatriation
of gold coins, bullion, stocks, ETFs, etc, bank withdrawal limitations
and other government restrictions will be put in place to prevent the general
public from taking steps to secure their liquid assets.
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- Forewarned is forearmed. For those that proceed into
the future unprepared, the outcome could be ruinous. For those searching
for fresh opportunities and new directions, we can provide trend-based
solutions to put you on the path to profit in the midst of confusion, panic,
fear and loss. For more information, please contact our Professional Services
Department at 845.876.6700 or go to www.trendsresearch.com for the full
range of Trends Research Institute services.
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- Gerald Celente
- Founder/Director
- The Trends Research Institute
- Website: http://e2ma.net/go/1199454285/1089834/39892890/
- www.trendsresearch.com
- Email:gcelente@trendsresearch.com
- 845-876-6700
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