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Financial Crisis: Sorting Through the Rubble in Post-Bubble America
- Text size
Mike Whitney
Global Research
March 8, 2008
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| The hurricane that began with subprime mortgages, has swept through the credit markets wreaking havoc on municipal bonds, hedge funds, complex structured investments, and agency debt. Now the first gusts from the Force-5 gale are touching down in the real economy where the damage is expected to be widespread. | |
“Market conditions are the worst anyone in this industry can ever remember. I don’t think anyone has a recollection of a total disappearance in liquidity…There are billion of dollars worth of assets out there for which there is just no market.” Alain Grisay, chief executive officer of London-based F&C Asset Management Plc; Bloomberg News
The hurricane that began with subprime mortgages, has swept through the credit markets wreaking havoc on municipal bonds, hedge funds, complex structured investments, and agency debt (Fannie Mae). Now the first gusts from the Force-5 gale are touching down in the real economy where the damage is expected to be widespread. The Labor Department reported on Friday that US employers cut 63,000 jobs in February, the biggest monthly decline in five years. The cut in payrolls added to the 22,000 jobs that were lost in January. 52,000 jobs were cut in manufacturing, while 331,000 have been lost in construction since September 2006.
The Labor Department also reported on Wednesday that worker productivity slowed significantly in the last quarter of 2007. When productivity is off; labor costs go up which adds to inflationary pressures. That makes it harder for the Fed to lower rates to stimulate the economy without inviting the dreaded “stagflation”—slow growth and rising prices.
The news on commercial construction is equally bleak. The Wall Street Journal reports:
“For the second month in a row, the Commerce Department reported a decline in spending on nonresidential construction — which includes everything from hospitals to office parks to shopping malls….Signs of trouble cropped up at the end of the year. As credit markets tightened, office space sold in the fourth quarter dropped 42 per cent from a year earlier, and sales of large retail properties declined 31 per cent, says Real Capital Analytics, a New York real-estate research group….If spending continues to slow, construction workers, who are reeling from the housing slowdown, face more layoffs.” (“Building Slowdown Goes Commercial”, Wall Street Journal)
Commercial real estate is the next shoe to drop. There’s a tremendous oversupply of retail space nationwide and the bloodletting has just begun. Builders have continued to put up shopping malls and office buildings even though residential real estate has gone off a cliff. Now the battered banks will have to repossess thousands of empty buildings in strip malls with no chance of leasing them out in the near future. It’s a disaster . From December 2007 to January 2008 spending on commercial construction took its steepest drop in 14 years. The sudden downturn is adding more and more people to the unemployment lines.
So, what does it all mean? Unemployment is up, productivity is down, inflation is increasing, the dollar is underwater, commercial real estate is in the tank and the country is sliding inexorably into recession.
As for the housing market:
“Housing is in its "deepest, most rapid downswing since the Great Depression," the chief economist for the National Association of Home Builders said Tuesday, and the downward momentum on housing prices appears to be accelerating.
"Housing is in a major contraction mode and will be another major, heavy weight on the economy in the first quarter," said David Seiders, the NAHB’s chief economist.” (“Rapid Deterioration”, MarketWatch)
Home sales are down 65 per cent from their peak in 2005. Inventory is stacked a mile-high. Vacant homes now number about 2 million; an increase of 800,000 since 2005. Demand is weak and prices are plummeting. It’s all bad. Meanwhile, the Federal Reserve and the Bush administration are scrambling to devise a plan that will keep homeowners from packing it in altogether and walking away from their mortgages. But what can they do? Will they really write-down the principle on the mortgages like Bernanke recommends and face years of litigation from bond holders who bought mortgage-backed securities under different terms? Or will they simply allow the market to clear and send 2 million homeowners into foreclosure in 2008 alone?
The deflating housing bubble is finally being felt in the broader economy. Home equity is vanishing which is putting downward pressure on consumer spending and shrinking GDP. Also, the dollar is at historic lows, and an intractable credit crunch has left the financial markets in disarray. Experts are now predicting that consumer spending won’t rebound until housing prices stop falling which could be late into 2009. When Japan experienced a similar credit/real estate meltdown; it took more than a decade to recover. There’s no reason to believe that the present crisis will unwind any faster.
On Friday, banking giant USB estimated that credit woes would end up costing financial institutions $600 billion, three times more than their original estimate of $200 billion. But USB’s forecast does not take into account the $6 trillion of lost home equity if housing prices fall 30 per cent in the next two years. (which is very likely) Nor does it account for the potential losses in the structured finance market where $7.8 trillion of loans (which are presently in “pooled securities”) have gone into a deep-freeze. There’s no way of knowing how much capital will be drained from the system by the time all of this plays out, but if $7 trillion was lost in the dot.com bust, then it should greatly exceed that figure.
The housing bubble was entirely avoidable. It was the policies of the Federal Reserve which made it inevitable. By fixing interest rates below the rate of inflation for almost 3 years, Greenspan ignited speculation in housing and created a false perception of prosperity. In truth, it was nothing more than asset-inflation through the expansion of debt. The Fed’s actions were complimented by repeal of regulatory legislation which prevented the commercial banks from dabbling in securities trading. Once the laws were changed, the banks were free to peddle their mortgage-backed securities to investors around the world. (A-rated mortgage-backed bonds are currently fetching just 13 per cent of their face value!) Now, those sketchy bonds are blowing up everywhere leaving large parts of the financial system dysfunctional.
As investors continue to run away from anything remotely connected to mortgages; the price of risk, as measured by the spread on corporate bonds, has skyrocketed. In fact, investors are even shunning overextended GSEs like Fannie Mae and Freddie Mac. As the number of foreclosures continues to soar, the aversion to risk will intensify triggering a savage unwinding of leveraged bets in the hedge funds as well as a wider paralysis in the finacial markets.
There’s absolutely no doubt now that the storm that is currently ripping through the financials will soon bring Wall Street to its knees. It may be a good time to remember that on March 24, 2000, the NASDAQ peaked at 5048. On October 9, 2002 it bottomed-out at 1114; a loss of nearly 80 per cent. Could it happen again?
You bet. Expect to see the Dow hugging 7,000 by year end.
The Wall Street Journal ran an article on Tuesday which outlined how the banks changed standards at the Basel meetings in Switzerland to give them greater autonomy in deciding issues that should have been governed by strict regulations:
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“Some of the world’s top bankers spent nearly a decade designing new rules to help global financial institutions stay out of trouble…Their primary tenet: Banks should be given more freedom to decide for themselves how much risk they should take on, since they are in a better position than regulators to make that call.” (“Mortgage Fallout Exposes Holes in New Bank-risk Rules”, Wall Street Journal)
It is a classic case of the foxes deciding they should oversee the hen-house.
The Basel Committee on Banking Supervision is an industry-led group comprised of the central bank governors from the G-10 countries; Belgium, Canada, France, Italy, Japan, the Netherlands, Sweden, Switzerland, Britain and the US. Basel is supposed to establish the rules for maintaining sufficient capitalization for banks so that depositors are protected. But it’s a sham. It appears to be more focused on maintaining US and European dominance over the developing world and making sure the levers of financial power stay in the manicured paws of western banking mandarins.
Now that the financial system is in terminal distress; many people are questioning the wisdom of handing over so much power to organizations that don’t operate in the publics interest. Thomas Jefferson anticipated this scenario and issued a warning about the perils of abdicating sovereignty to unelected, profit-oriented bankers. He said:
“If the American people ever allow private banks to control the issue of our currency, first by inflation, then by deflation, the banks and the corporations that will grow up will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”
Even though the nation is stumbling towards an economic hard-landing; the banks are still only interested in finding a way to save themselves. Last week, the New York Times revealed a “confidential proposal” from Bank of America to members of Congress asking the US government to guarantee $739 billion in mortgages that are at “moderate to high risk” of defaulting to save the banks from potential losses. On Thursday , Rep. Barney Frank–operating in the interests of his banking constituents–made an appeal in the House of Representatives on this very issue, saying that congress should consider buying up some of these sinking mortgages to help struggling homeowners. But why should the taxpayer pay for the mistakes of privately-owned banks; especially when those banks have been bilking the public out of billions of dollars through the sale of worthless subprime securities?
The Fed has already lowered the Fed Funds rate by 2.25 basis points to 3 per cent (more than a full-point below the current rate of inflation) to help the banks recoup some of their losses from their bad bets. Bernanke has also opened a Temporary Auction Facility (TAF), which allows the banks to use mortgage-backed securities (MBS) and other structured investments as collateral at 85 per cent their face-value.(even though the bonds are only worth pennies on the dollar on the open market) So far, the TAF has secretly loaned out $75 billion to capital-depleted banks, which Bernanke thinks is a positive development. But why is the Fed chief encouraged by the fact that the country’s largest investment banks need to borrow billions of dollars at bargain rates just to stay solvent? The truth is that many of the banks are just padding their flagging balance sheets so they can scour the planet looking for investors to buy parts of their franchises.
On Tuesday, Bernanke addressed the Independent Community of Bankers of America exhorting them to take whatever steps are required to keep homeowners with negative equity from walking away from their mortgages. Along with the proposed “rate freeze” on adjustable rate mortgages (ARMs); the Fed chief also suggested that the lenders lower the principle on the mortgages to entice homeowners to keep making nominal payments on their loans. But, clearly, foreclosure is the wisest choice for many homeowners who may otherwise be chained to an asset of steadily declining value for the rest of their lives. Homeowners should base their decisions on what is in their best long-term financial interests, just as the bankers would do. If that means walking-away, then that is what they should do. The homeowner is in no way responsible for the problems deriving from the subprime/securitization scam. That was entirely the work of the bankers.
The FDIC has begun to increase staff at many of its regional offices to deal with the anticipated rash of bank failures in states hardest hit by the housing bust. California, Florida and parts of the southwest will definitely need the most attention. These states are undergoing a housing depression and many of the smaller banks which issued the mortgages and commercial real estate loans are bound to get hammered. They simply do not have the capital cushion to withstand the tsunami of defaults and foreclosures that are coming. Depositors should make sure that all their savings are covered under FDIC rules; no more than $100,000 per account. Money markets are not insured.
Also, the G-7 nations announced last week that if “irrational” price movements persist, they would “collectively take suitable measures to calm the financial markets”. The group added that they would conduct their activities secretively for maximum effect. Consider how desperate the situation must really be for G-7 finance ministers to issue a public warning that they are planning to intervene in the market to prevent a calamity. This is stunning. The group did not specify whether they were talking about propping up the stumbling greenback or buying up futures in the equities markets like a global Plunge Protection Team. Nevertheless, their comments add to the growing perception that things are out of control and deteriorating quickly.
With oil, gold and food prices soaring, the Fed has been roundly criticized for cutting rates and risking further erosion to the value of the dollar. (This morning the dollar fell to $1.53 on the euro!) But Bernanke is right; the real danger is deflation. We are at the beginning of a consumer-led recession; characterized by weakening demand, lack of personal savings, declining asset-values (particularly homes) and over-indebtedness. The Fed’s increases to the money supply via low interest rates will not effect the dramatic economic slowdown that will be evident within the year. Trillions of dollars of derivatives, over-leveraged subprime assets and otherwise bad bets are all unwinding at the same time draining an ocean of virtual capital from the economy. If credit keeps getting destroyed at the present pace, the country will be in the grips of a depression-like slump by 2009. The Wall Street Journal’s Greg Ip puts it like this in his article “For the Fed, a Recession—Not Inflation—Poses Greater Threat”:
“So why is the Fed more worried about growth than inflation? First, it thinks run-ups in commodity prices explain the increases, not only in overall inflation but also in core inflation: higher energy costs have "passed through" to other goods and services. Core inflation rose and fell with energy inflation between early 2006 and mid-2007, and the Fed thinks the same thing is probably happening now. If energy and food prices stop rising — they don’t have to actually fall — both overall and core inflation should recede.
Ip continues: “Fed officials don’t think the latest jump (in food and energy) can be justified by fundamental supply and demand….A more likely explanation, investors perhaps alarmed by the Fed’s dovish stance, are pouring money into commodity funds and foreign currencies as a hedge against inflation. …But speculative price gains can’t be sustained if the fundamentals don’t support them. If the Fed and the futures markets are right, prices will be lower, not higher, a year from now.”
Bernanke is right on this point. Temporary price increases are not the result of shortages, increased production costs, or fundamentals, but speculation. In fact, demand for petroleum products has been down by 3.4 per cent over the last four weeks compared to the same time last year, which means that prices will probably drop steeply once the commodities frenzy runs out of steam. Investors are simply looking for somewhere to put their money rather than in shaky corporate bonds or overpriced equities. Commodities are the logical alternative. But as soon as consumer spending stalls; all asset-classes will fall accordingly, including gold and oil. (And, yes, the dollar should recover some lost-ground, however temporary.)
Many analysts believe oil’s rally will be short-lived. Falling demand for overall petroleum products, which was down 3.4 percent over the last four weeks compared to the same time last year, suggest prices could drop steeply once the dollar-driven oil investment frenzy runs out of steam, analysts said.
Cyclical downturn or post-bubble recession?
An article in the New York Times by Morgan Stanley’s Asia chairman, Stephen Roach, states that the country is not in a cyclical downturn, but post-bubble recession. There is a big difference. The Fed’s interest rate cuts and Bush’s “Stimulus Plan” are unlikely to stop housing prices from continuing to fall nor will they miraculously fix the problems in the credit markets. The massive expansion of credit in the last 6 years has created a $45 trillion derivatives balloon that could implode or just partially unwind. No one really knows. And no one really knows how much damage it will cause to the global financial system. Stay tuned.
Roach notes that the recession of 2000 to 2001 was a collapse of business spending which only represented a 13 per cent of GDP. Compare that to the current recession which “has been set off by the simultaneous bursting of property and credit bubbles…. Those two economic sectors collectively peaked at 78 percent of gross domestic product, or fully six times the share of the sector that pushed the country into recession seven years ago.”
Not only will the impending recession be six times more severe; it will also be the fire-siren for America’s consumer-based society. Attitudes towards spending have already changed dramatically since prices on food and fuel have increased. That trend will only grow as hard times set in.
Roach adds: “For asset-dependent, bubble-prone economies, a cyclical recovery — even when assisted by aggressive monetary and fiscal accommodation — isn’t a given….Washington policymakers may not be able to arrest this post-bubble downturn. Interest rate cuts are unlikely to halt the decline in nationwide home prices…Aggressive interest rate cuts have not done much to contain the lethal contagion spreading in credit and capital markets…A more effective strategy would be to try to tilt the economy away from consumption and toward exports and long-needed investments in infrastructure."
The Federal Reserve and Washington policymakers are still stuck in the past trying to revive consumer spending by creating another equity bubble with low interest rates and their $600 per person “stimulus” giveaways. Wrong way. Invest in infrastructure and environmentally-friendly technologies, rebuild the economy from the ground up, reestablish fiscal sanity and minimize deficit spending, put America back to work making things that people use and that improve society, and (as Roach says) “help the innocent victims of the bubble’s aftermath — especially lower- and middle-income families”. And, most importantly, abolish the Federal Reserve and give the control of our money back to our elected representatives in Congress. That is the only way to put America’s economic future back in the hands of the people.
That’s a plan we can all get behind. It’s time to split the new wood and start fresh.
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March 8th, 2008 at 7:39 pm
Hail to irreproachable Alan Greenspan and all the unregulated Wall Street money making schemes-hedge funds, derivatives, etc. that got us here. The same guys who concocted them are the same ones who profit when the ship goes down, scapegoating the people and the and leaving them to suffer. – and some people say the illuminati is just a far fetched conspiracy theory.
March 8th, 2008 at 9:30 pm
I almost tend to agree with Dictator Bush about the economy not being as bad as what this article portrays. That is because the number of empty homes seems very suspicious. Either the number used in this article are a yearly standard anyway or I ask where are people living if not in some home that had residents to begin with? Our population is still growing, so that sounds suspicious for sure.
Next, about the commercial “emptiness” that this article speaks of as well as the naysayers about the economy as a whole. If what is being said about commercial property being so in the way that no one is renting the spaces, then I must ask why is there so much commercial construction still going on around the country?
If there are so many now emptying commercial properties as indicated, then maybe that is because everyone has more money to buy all the new places being built. That also would go for the empty homes. Think about it. The numbers just do not seem to add up.
Rhonda
PS: This is comment number two
March 8th, 2008 at 10:34 pm
If everyone with a mortgage stopped making the payments right away the whole FedResBank scheme would just collapse, and it would be the best thing for our country. They screw’d us first. Time to reciprocate. This was a brilliant, illuminating article, Mike. Well done!
March 8th, 2008 at 10:43 pm
Hey Rhonda, your a idiot!!!!
March 8th, 2008 at 10:49 pm
PS: Rhonda,…What country are you living in? Here, in the USA there is a financial meltdown. That is why you can buy a new $26,000 vehicle for $16,000. after the rebates and discounts. Un-heard of in my 50 plus years. There are so many empty retail locations. Service businesses are doing OK, but retailers are all dying.
March 8th, 2008 at 11:04 pm
Rhonda –
When people lose there homes they move into apartments or move in with family members until they can manage to try to buy a home again or find an apartment. Many places are feeling the burden of the recession much more than others. Many homes will be bought up by the affluent for pennies on the dollar and used as rental properties. Many former homeowners will rent these. This is part of the planned transfer of wealth. The poor and middle class are encouraged to buy when prices are high, the wealthy are more than happy to buy when it all comes tumbling down and prices are low.
As for commercial properties, there are always vacancies, but even a 5% increase in vacancies and a thirty day increase in statistics on how long it takes to fill a vacancy on average can mean a huge difference in a landlord’s bottom line. Retail businesses tend to stay more stable (because retail tends towards resteraunts, bars, clothing and other things people tend to spend their money on even when they are relatively broke) than office space in a large building so much of the vacancy problem may not be visible at street level when you are walking or driving around.
As for construction, thanks to illegal immigrant labor, construction jobs no longer pay well and labor is cheap. Also, construction projects take a significant amount of time to set up plans, permits, gathering financial backing, etc. This means that you will see construction taper off in a year or two from now. For current projects, the investment in time and money is already at a point where you know you’ll lose your shirt if you delay or stop it so all you can do is keep building, pray there’s no cost over-runs and hope you can fill the space when it is done. When the economy boomed in Seattle during the late 90’s Seattle probably added 1 building to it’s skyline for every two it already had, when the bust came there were a dozen unfinished projects but they kept on building since they really are left with no other choice at that point. A year or two later construction was finished and no new holes for high rise buildings were being dug.
So at the moment you have to look at the statistics and raw economic conditions to really see what your own eyes won’t tell you until a year or two from now. If the economy were to turn around and start booming again tomorrow you would still see a large decrease in construction a year or two from now and an upsurge from the recovering economy a year or two afterwards.
Don’t fool yourself, just as with the variances between different segments of the economy, the poor like myself are already getting kicked straight in the teeth with this economy, the middle class is feeling it to, just not as much – same kind of time lag. We canaries in the coal mine are dropping like flies.
March 8th, 2008 at 11:14 pm
Hey Rhonda, if you were here in South Florida you’d see the thousands of empty homes and condos everywhere. People are moving in 2 or 3 families per house or apartment, friends are rooming with other friends, etc. That’s what happens in a depression. We haven’t seen them much in the last 30 years but when I was a boy “boarding houses” were common. An elderly couple or widow with a larger home would rent out bedrooms for a small amount per week or month to people who couldn’t afford their own home. The owners would cook and clean for the “boarders” and so could make ends meet. People had to learn to live together and get along. My parents lived through the depression. Everyone shared because there was no money. If one happened to find some apples or potatoes they shared with friends so all could have a little to eat. Get used to the idea, because the hogs who have looted America the past 40 years have left us in a horrible mess. Whoever the next president is they are doomed to be another Herbert Hoover and will be blamed for the bread lines and tent cities thousands of homeless Americans will find themselves in. Nothing will change until people wake up and throw the useless criminals out of our gov’t and elect someone like Ron Paul. To do that, all electronic voting machines will have to be scrapped and carefully watched paper balloting must be used because there are factions of elites who plan to make a killing off Americans’ misfortunes by buying up their property for next to nothing.
March 8th, 2008 at 11:17 pm
Gee, productivity drops when people can no longer meet their basic needs on their deflated and never increased wages? Who’d a thought? Could those who actually work for a living (as apposed to managers, CEOs, CFOs, investors, sales people, i.e. actual useless eaters) be traitorously getting annoyed about being fleeced. Who told those human resources they were allowed to say “ow” when we skin them?
March 9th, 2008 at 3:00 am
9/11 conspiracy theorists predicted Gold would reach $1000 and everyone called them wackos.
March 9th, 2008 at 5:13 am
Operation Noble Resolve is scheduled for July. Will it go live? Hard to predict, since “green-light” or to go orders go through so many steps, the last one being just a few days before. There aren’t a lot of instances for comparison. If it goes live then that’s martial law.
March 9th, 2008 at 5:51 am
Weakening the dollar is a planned event. Keep in mind, to make a million dollars on paper is smaller then the stock in your Wal-Mart stores, it’s also under heavier guard. To say there’s a deficit is to say, Wal-Mart is shutting down some of their stores. If that’s the case, why is Wal-Mart still building newer markets across the U.S. ? They’re all being built by Unions too; non-stop; 24/7 !
Oh, I see, they must have a direct line of money from the Federal Reserve ? I think the public should wake-up, all of this is being orchestrated; the reason is much bigger then we can imagine.
March 9th, 2008 at 6:11 am
I try and spread the word, but people call me a nut job!
March 9th, 2008 at 7:37 am
What most Americans need to continue doing is to listen to mainstream media and every word they preach. Continue to be fearful of widespread Terrorisim and Al Qaeda, continue to loose your rights in the name of security, Vote Obama, Hillary and McCain and then riducule and ditch the true American patriots who talk about and want to fix the very same things that the majority of Americans desire as change. Don’t ask important questions. Don’t investigate on any matters yourselves and point to others as anti-American when they do. Accept that nothing is being done by your leaders and allow them to ignite more wars, while allowing yourselves to be trapped in a huge recession and economic disaster so that the NAU can be formed. Actually, this is exactly what is happening.
The Elite must be pissing there pants. It’s a f---ing joke !
March 9th, 2008 at 8:42 am
“All the perplexities, confusions, and distresses in America arise, not from defects in the Constitution or confederation, not from want of honor or virtue, as much as from downright ignorance of the nature of coin, credit, and circulation.” – John Quincy Adams
March 9th, 2008 at 10:04 am
Doom and gloom. Really made my day! Nero fiddles in the White House as the country burns to ruin. Congress has sold the American people down the river, NAFTA, CAFTA, any industry left. The Federal Reserve is not Federal and there is no Reserve.Unemployment is growing like a cancer. There are no jobs. How do I make a mortage payment? How many homes can be reposessed? Waiting for the sheriff to show and evict. The dollar buys, what? Where are the Statesmen that will help lead us to prosperity again? Hillary? O bama? Mcain? The monster feeds and grows. Villagers arise! The time for pitchforks and tourches has come, for the monster runs amuck! “But, besides that, Mrs. Lincoln; How did you enjoy the play?”
March 9th, 2008 at 10:24 am
I try and spread the word, but people call me a nut job!
Chris,
It’s been like that throughout our History. When Hitler was coming into power the same things were said to those who were trying to warn the masses. David Icke has once said, we are policing our own selves. Please understand, that we are our own worst enemies. If you want to know who the enemies are, you need to only look into a mirror (V). People want change but fear change most. People are more concerned about how they fair against there fellow man then to do and to act on what’s right. If you are one of those who is trying to inform the public then you are also one of those who is gifted, able to see beneath the surface of things, and actually in charge of your own mind. I like to refer to us as the intelligent one’s. Hint: You don’t need a PHd. Some of the biggest fools actually have high degrees. So, don’t be bothered by the sheep.
Most people will realize when the damage begins and stopping it is too late. It is our destiny !
Keep spreading the word
March 9th, 2008 at 10:36 am
shotguns, ammo, and canned goods people. face it, it is over
March 9th, 2008 at 11:25 am
For those that say they can’t afford gold may I suggest silver. I’ve been buying since it was $5.00 an ounce. Have been getting more weekly as it should at least double from its current price. Also, if they call in the gold as they did during the last depression they more than likely will not call in silver.
March 9th, 2008 at 11:39 am
john, shotguns ammo and canned goods.. cant eat silver
March 9th, 2008 at 12:33 pm
You nailed it Mr Hucky (post #7)
Even as individuals we all must first “bottom out” from our troubles before we gain a clear concise view of how we got to the bottom. That’s what the coming depression will do…American Idle, The NFL and every other “distraction” will melt away under the heat of reality. When deciding between food, fuel, and shelter… or attending a concert for 85$ a ticket, Americans WILL wake up.
That’s when 9/11 truthers everywhere will not only be redeemed in the eyes of others…but… We will then have to step up and help lead…the next chapter in all our spiritual journeys…leadership…strength…be ready
March 9th, 2008 at 12:53 pm
“I was in the right place, but it must of been the wrong time”
Rhonda, You are a complete moron. Go find another site. Your incompetence wreaks!
March 9th, 2008 at 2:26 pm
Rhonda –I,ve got some nice water front property for sale CHEAP !!!!!You have got to have been asleep for at least the last year !!! DAM
March 9th, 2008 at 5:57 pm
wait until food is the new currency, bread specifically.
People will be buying and selling the ‘Mc mansions’ for 12 loaves of bread.
13*
March 9th, 2008 at 7:30 pm
Mr. Dutton, you have a tight grip on reality, I hadn’t heard of the swedish rapes, I thought they were all pretty much armed over there, even if not, why arn’t they stringing the muslims up, long ago while I was in the brig, ihad nothing much else to do but work out and read, they happened to have a copy of the koran, I read it and found stuff like, it’s alright to rape as long as your intentions are good! I’m so sick of it all, men all over the world need to be standing up for their women and children!
March 9th, 2008 at 8:45 pm
Quote from From McClatchey Article: “The losses stood in stark contrast to the forecasts of most mainstream economists, who’d predicted an increase of about 25,000 jobs in February”.
Boy, am I glad I’ve been following Whitney for a year now! People accused him of being too gloomy and a whacked out nut. I got out of this mess last Aug. thanks to him.
March 10th, 2008 at 10:38 am
This is all going down exactly as planned.
Stirring up the hornets nest in the Middle East (note how most people haven’t connected the INVASION of Iraq to 911.
The collapse of the dollar…
The masses are in a hypnotic trance.
The public is in deep DENIAL.
The writing is on the wall in bold relief.
Get ready for the coming storm (and look out for FEMA who is ready to clean up!)
Heaven help us.