So here's how you can play at home - follow along with what's happening daily. Here's the depression scenario:
(1.) The collapse of bond insurers (MBIA, Ambac, FGIC and others). They have guaranteed billions in collateralized debt obligations (CDOs) which are becoming worthless. (2.) The banks that paid them for protection against default on their CDOs and face more writedowns (Merrill, Citi and others) -- maybe $1 trillion in the whole system. A big bank might go under. (3.) Writedowns will move from subprime mortgages to near-prime, to prime mortgages, to commercial real estate, to auto loans, to credit cards, to corporate buyout loans, to corporate bonds and derivatives. (4.) Lenders would then have to pull back on ~$2 trillion in lending, according to a Goldman Sachs analysis. (5.) Financial losses spread to other world capital markets, especially Europe. Credit spreads will keep widening. Equities, housing, commodities, emerging market assets and the dollar will get hurt. (6.) Home prices, down 8% currently, could fall by 20% to 30% total before bottoming. (7.) Large recession or depression ensues, probably globally. Cash is king. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;203748912;27390454;j Archive: http://www.houseoffusion.com/groups/CF-Community/message.cfm/messageid:264342 Subscription: http://www.houseoffusion.com/groups/CF-Community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
