The Economic Crisis is Old News
The current sudden economic crisis has been predicted for a long time by those in the know.
There are those who would like people to think it is not so and there was nothing they could do earlier to avert disaster until now.
Fortune Magazine lists 8 financiers who saw the problem coming and 8 who did not.
Here is a Toronto Star newspaper article, Five Reasons to start worrying", which explains it all and predicts what has happened since March and will happen as a solution come Monday. http://www.thestar.com/News/Canada/article/349667 One has to assume a lowly columnist isn't the first to know.
The article ends,
"If worst comes to worst, the United States may end up creating a state agency to relieve troubled lenders of their junk – which the Fed effectively began to do by accepting a liberal definition of collateral in return for emergency bank financing.
It would be a costly gambit, reminiscent of Resolution Trust Corp., which picked up the pieces after the U.S. savings and loan disaster of the 1980s, whose total cost, while enormous by contemporary standards, would seem like chicken feed compared to this catastrophe.
Better that, though, than a great unwinding of the global financial system – although there's room to wonder if America, facing a $3 trillion debt in Iraq and Afghanistan, can resort to a rescue for the ages without resorting to printing the currency to fund it."