Many of you already saw this credit downgrade of the U.S. Government by a German ratings agency. A commenter posted the link yesterday in the comment section but I didn't have time to do a blog post: LINK It's worth the quick read if you haven't seen it and here's information on Feri, the entity that issued the report:
Feri EuroRating Services AG is a leading European rating agency for the evaluation of assets in markets and products and one of the leading European economic research and forecast institutes LINKI would certainly trust Feri's assessment of the U.S. creditworthiness over that of any U.S. credit assessment company and I believe even Feri's view is far too optimistic.
I also wanted to post a great summary of the situation facing this country and the inability of most of the citizens to either comprehend how dire our situation is OR unwilling to look at it and deal with it, preferring instead to cover up their eyes and hope for the best. Here's LINK and I highly recommend spending the time to read it. It's the most honest assessment of what's to come in this country that's been hung out for public perusal and I believe even this one is too sanguine...
As a follow-up to my Monday post about the brewing liquidity problem in the banking system from mortgage delinquencies, here's an accounting of a family in Florida that has been living in its home for 5 years without making a payment: Wow You wanna know who's making up those payments to keep the bank balance sheets above water? We the Taxpayers are. You like apples? How do you like those apples?
And speaking of past, present and future Taxpayer bailouts and subsidizing of banking employee bonuses, recall that AIG's stock is down 55% since January. Well it looks like the U.S. Taxpayer is being set up to transfer even more wealth to AIG and the crooks who run it, courtesy of Geithner and the Obama people. Read this from Zerohedge: LINK
I'm still shocked that the American public looks the other way and accepts this arrangement between Obama and the big financial firms. I'll finish with this little anecdote. Was chatting with a long-time colleague earlier who was meeting with a client who works for a big insurance company selling insurance products. This fella was in a meeting with some big hedge fund managers earlier this week. The hedge fund guys made the comment to the insurance guy that "he should expect that down the road the big insurance companies will never be able to cover the claims which come from all of the crazy insurance coverage they are underwriting because they are in such bad shape financially now."
Just like everything else in American finance, big insurance is a giant, derivatives-infested Ponzi scheme getting closer to blowing up. I think the truth of that statement is contained in the 6-month performance of AIG stock...buona giornata a tutti.