As I mentioned in yesterday’s post, I was at a seminar on Monday and I am reviewing the “highlights”. The speaker was Jerry Robinson, author of “Bankruptcy of our Nation”. In my previous post, I discussed what the author considers five dangerous economic trends:
- Faith based currency (no tangible backing of U.S. dollar – debt instrument).
- U.S. Government Debt (trillion this year alone and counting)
- Energy Crisis (demand surging ahead of production)
- Federal Reserve (shadow government institution)
- Consumer Debt (6000 individual bankruptcies per day)
Today, I want to review what he feels is the current state of the American economy. In keeping with the title of his seminar and book, it is depressing!
- Commercial Real Estate is collapsing. $83 billion in defaults and foreclosures. Many of the bank foreclosures that are happening can be tied to the deteriorating commercial real estate market.
- Residential Real Estate is still bottoming out. Currently, 13% of Americans are behind in their mortgage payments. There are 10,000 foreclosures per day. Adjustable Rate Mortgages are ready to reset their rates within the next 24 months.
- Bank Failures. There are 416 banks on the FDIC watch list (15 year high). There have been 106 bank failures so far this year. According to his figures, 1/4 of all banks are currently unprofitable.
- Federal Reserve. Unknown strength or assets. This entity has never been audited.
- FDIC. Has less than 10 billion (close to $0 by now) in assets to cover over 4.8 trillion in assets. The assets of the 416 currently troubled banks is 29 times the current FDIC insurance fund.
- Federal Government. U.S. debt is currently 12 trillion. By 2010 it is estimated to climb to 20 trillion.
- State Government. States are collecting 12% less in revenues. 48 out of 50 states have budget deficits.
- U.S. Dollar. Currently at a 14 month low. Russia, China, U.N. are calling for a new global currency.
So, isn’t that some bright news to add cheer to your day! Tomorrow I will review his predictions for the next 5-10 years, and on Friday I will review what we can personally do in such a climate.
So as not to leave us dangling with all that bad news – things looked just as dire during the Great Depression and people survived, and some even thrived. Take each day as it comes, and do the best you can with it. Many of these macro factors we cannot control, but we can control our own outlook, our work ethic, and our saving and spending.
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Bankruptcy of America – Our Current State
by JD on October 28, 2009
As I mentioned in yesterday’s post, I was at a seminar on Monday and I am reviewing the “highlights”. The speaker was Jerry Robinson, author of “Bankruptcy of our Nation”. In my previous post, I discussed what the author considers five dangerous economic trends:
Today, I want to review what he feels is the current state of the American economy. In keeping with the title of his seminar and book, it is depressing!
So, isn’t that some bright news to add cheer to your day! Tomorrow I will review his predictions for the next 5-10 years, and on Friday I will review what we can personally do in such a climate.
So as not to leave us dangling with all that bad news – things looked just as dire during the Great Depression and people survived, and some even thrived. Take each day as it comes, and do the best you can with it. Many of these macro factors we cannot control, but we can control our own outlook, our work ethic, and our saving and spending.