The Good News

I lied...in the title to this post.

The year 2008 will start with a resumption in the disorder breakdown buzz, a resumption in the gold climb, and new chapters in big bank bankruptcy throes, and eventually a nearly complete loss of respect and integrity in the US Federal Reserve. The word 'Bankruptcy' will not be used until a big bank actually files for bankruptcy. The ring of the word Bankruptcy is more accurate, since it implies Hemorrhage, another great word. The collateral damage will include most bond insurers going bust, but holding firm to 'AAA' ratings in pure corrupt manner. The collateral damage will include most homebuilders going bust. However, the centerpiece of 2008 woes will be the PRIME MORTGAGE BUST, felt much like the stage falling through the floor in the Victorian Theater. The decline in housing prices will continue to push prices down another 5% to 10% in the new year, killing off prime mortgage portfolios and their bonds. The bust will take down the entire US banking system, which is now reeling and tipsy, like a punchdrunk boxer after enduring ten rounds of a pure beating, bloodied, wobbly, dizzy, blurred in vision. The mortgage debacle will extend to the commercial property arena, the degree of which will be uncertain.

Very highly recommended.