Wallstreet in Tears

CRASH! PANIC!! MELTDOWN!!!

If you've listened at all to any of the Boo Hoo Hooers of Wallstreet and the Fed over the past two weeks you would think that no one would have ever predicted the recent financial collapse. That's just not true. There were plenty of people who knew this was coming. They are just "over qualified" for job positions in the federal government or to be paraded across CNBC! :)

Jim Puplava and his excellent Financial Sense Newshour radio show over on FinancialSense.com predicted EVERYTHING that has been occurring LONG BEFORE before it even started, from the skyrocketing inflation to the mortgage meltdown to the collateralized debt meltdown and the credit crisis.

Peter Schiff, a frequent guest on FinancialSense.com, has been warning the world of what was coming since before his book came out in February 2007. His recent Comrade Bernanke Does It Again article is an EXCELLENT piece on the sad fall of America into Socialism. I strongly encourage you to read it. Here's a quote:

While Fannie and Freddie were arguably quasi-government agencies that deserved special protection, no such status exists with AIG. Where does the Fed get the authority to use the money it prints to take over private companies? Congress never gave such authority and, even if it had, it would be unconstitutional, as Congress itself has no such authority to delegate. What about the shareholders? Why didn’t they get to vote on this acquisition? Whatever happened to private property rights?

So where do we go from here? As Stephen Leeb, Jim Rogers, Jim Puplava, and many others have made the case for all along we are still in a long-term bull market in commodities. Nothing has changed there. Energy and raw material supplies are razor thin and continuing to fall with the peak in oil production, in particular, behind us with a perpetual declining slope ahead.

Despite Wallstreet's insistence that the rest of the world must slow down as Wallstreet fails (From the same people who bid up heating oil prices when it snows in New York City, as if they're the center of the universe.), a mild slowdown will only be short lived. The rest of the world will go on while government officials bail out all of their Wallstreet friends and print hundreds of billions of dollars off the printing press, pushing the value of the dollar into oblivion.

The real question is, when will China and over governments stop buying the worthless U.S. paper? If you think things are bad now, wait until that happens.