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Duration: 10:54 minutes Upload Time: 2007-12-28 20:39:04 User: johnnyLiberty1776 :::: Favorites :::: Top Videos of Day |
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Description: Joe is holding down the fort at PTG while the Wall Street journal had a very telling headline this morning .... "Happy New Year - don't bank on it" because they see tough times ahead. CitiGroup talked of 8-11 bil in write-downs in November but now the estimate has been upped to 18-19 billion in losses and that may not be the end of it. They and other lending institutions throughout the world have been advised to sell assets (12-100 billion for CitiGroup alone) to raise capital for the short falls, so they can avoid defaults. In addition, 93 different lending institutions went to the Fed windows to borrow funds but the majority of the money (82.5% or 16.5. billion) went to the NY lending institutions close to Wall Street. The same guys who control the money, write the rules, and they always look out for themselves first. The banks are beginning to have 'garage sales' to cover their losses. Small business bankruptcy filings are also up at least 13%, and in biggest risk of Chapter 11 are electronic makers, coal companies, agricultural companies, paper and chemical companies, online brokerages, financial institutions, some entertainment companies, due to credit crisis, rising costs and slowing growth of economy. Troubles in the bond markets are ahead as well. Brikshire Hathaway (Warren Buffet) is opening a new bond insurance company in NY, instead of buying some of the existing bond insurers (like ACA Capital (AAA Bond Insurer) who are in deep trouble for writing bonds on less that insurable parties. The credit crisis is beginning to spread and snowball and will get much worse before there can be a turn around. New home sales are down for the year - lowest since 1995, and down 34% in the last 12 months alone. Call 1-800-951-0592 (closing early today and Monday but we'll be open and doing a live show on Monday, as well). |
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| de79hill ::: Favorites 2007-12-29 02:15:14 joe, telling it like it is! __________________________________________________ | |
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