The bad news on the sub-prime morgage comes in trickles which is
suspicious in of itself. A certain bank will "discover" it has lost
some billions due to the mess. Two weeks later they announce another
few billion in losses. Some time later..another couple of billion.
Like a leaking toilet, they slowly leak out the bad news to avoid
causing panic on the markets.
The old Enron scam of making debt disappear has been around for some
time. Now comes rumours that some banks have hidden their losses
hoping to declare it overseas later (or maybe never) rather than
declare them all at once in the US.
If they were ever found to be in collusion with the US govt, all hell
would beak loose on the financial markets. Nobody would trust govt
figures. As it is people are getting suspicious. Just like the fake
inflation rate and talk of propping up the dollar prior to devaluing
it, everyone would turn suspicious of any annoucement or instrument of
debt (i.e. money/bonds) issued by the govt or big business.
Cor****ate corruption has penetrated big government and is slowly
destroying the dollar's value.
So stay on guard and monitor the decline of your purchasing power
(cost of living). You will be a much better barometer of how fast
inflation is burning a hole through floor.
