Scare you?

I Dugg a great blog about the nightmare that our economy has become. You should check it out but I warn you that it is very technical and if you do actually understand it then the content WILL SCARE THE LIVING SHIT OUT OF YOU.

If you think the mortgage/credit crisis is over or has any chance of getting better anytime soon then you are in for an extremely big surprise. The next phase of this financial disaster is the outright failure of huge numbers of banks. Don't worry the FDIC will save us...sure, if you've got less than $100,000 in the bank the FDIC will cover the losses. But the FDIC only has a total of $50 billion to cover claims when a bank fails and the IndyMac implosion has already taken 10% of that reserve. So do you think that $45 billion is enough to cover the failures of as many as 1500 banks that are in seriously exposed positions now?

Now I'm all for giving people the chance of owning their own home and building some wealth but all of the irresponsible lending that has taken place over the last 6-7 years is coming back to haunt us. Combine that with changes made to legislation regarding both banks and investments/futures and you end up with where we are now, a veritable financial "Perfect Storm".

And don't think that the rest of the world will be safe from the impending collapse of the US economy. Forget about a recession, we're way past that now. This may be the beginning of a world-wide depression.