Fannie Mae has failed.
Freddie Mac has failed.
Merrill Lynch has failed.
Bear Stearns has failed.
Lehman Brothers has failed.
Lehman's collapse into bankruptcy protection is the biggest corporate debt default in the history of the world.
AIG, the largest insurance company in the United States, is failing.
Are you paying attention yet?
Alan Greenspan, the former chairman of the Federal Reserve, said over the weekend: "We will see other major firms fail."
This is not an internet rumor. It is the former chairman of the Federal Reserve saying that more major firms WILL fail.
And John McCain and Barack Obama cannot do a thing about it.
"This crisis stands out because of its sheer scale, the monetary value, its complexity and the speed with which it is happening," said Robert F. Bruner, dean of the Darden Graduate School of Business Administration at the University of Virginia.
So now the federal government has stepped forward to bail out Fannie Mae and Freddie Mac. Problem solved? No. Did you realize that every penny spent to bail out these private corporations has to be borrowed since there is no money in the federal treasury?
So who is paying for this mess?
What do you do if you are a big financial firm and you are failing?
You call "Helicopter Ben Bernanke" and he bails out your company by stealing from the American taxpayers.
The American Dream has now become the American Nightmare.
Fannie Mae and Freddie Mac owned or guaranteed about half of the 12 trillion dollar mortgage market in the United States.
They have collectively been responsible for more than 80% of the new mortgages being issued in 2008.
Fannie Mae reported total assets of $882.5 Billion in 2007.
Fannie Mae and Freddie Mac are two of the largest corporations in the world, and if they were countries, their gross domestic products would be bigger than most of the nations in the world.
And now Fannie Mae and Freddie Mac have FAILED.
Posted below is a chart of Fannie Mae's stock price.
Do you notice a trend???
Fannie Mae and Freddie Mac are the absolute heart of the mortgage industry in the United States. If they have failed, do you think that is a good sign for the U.S. economy?
The next chart shows the total reserves of all the banks in the United States. Can you see what has happened? The reserves of our local banks are totally gone!:
The next chart shows the absolutely insane amount of money our banks have had to borrow from the Federal Reserve just to stay afloat. Even with all of this borrowing, 11 banking chains have already failed this year.
This fourth chart shows the growth of America's national debt over the years. Imagine if your own personal borrowing looked like this.....
In just a few short months, the federal government of the United States will be over 10 TRILLION dollars in debt.
10,000,000,000,000 dollars in debt!
Will the current generation of Americans repay this debt?
No, the current generation seems determined to go even deeper in debt.
So, that means that the current generation of Americans is dumping this debt on to their children and their grandchildren and to generations beyond that.
That is inexcusable!
The truth is that America has sold their children and grandchildren into economic slavery forever.
How would you feel if you were a little child and you discovered that your parents had run up a million dollars on a credit card in your name, and now you had to make interest payments on that credit card for the rest of your life?
I imagine that you would be furious!
America's children and grandchildren will be working ALL of their lives to pay interest on this ridiculous debt. Their labor will go into serving the owners of this debt, and there is no escape.
America has had the greatest party in the history of the world and it has fueled this extravagant party on massive amounts of debt, but there is some really bad news.....
The party is coming to an end.
The reserves of America's local banks are gone. The financial institutions of the United States have borrowed an insane amount of money from the Federal Reserve this year just to stay afloat. Many have already failed. America's financial system has never experienced a crisis of this magnitude.
The biggest debt bubble in the history of the world is beginning to burst.
For decades Americans have lived like kings and queens.....enjoying the biggest party the world has ever known.....but financed with ever increasing amounts of debt.
Once upon a time, the United States was the biggest creditor in the entire world. But those days are long gone. Now America is the biggest debtor nation to ever exist on the earth.
America was the wealthiest nation in the world, but that was never enough. Americans always had to have a bigger car, a bigger house and an endless supply of "stuff". So the American government piled up debt, American companies gorged on debt, and Americans made using credit cards into a national pastime.
And if you include the future liabilities that the United States government has committed to such as future Social Security and Medicare payments, then the total debt of the federal government is over 59 TRILLION dollars.
59 TRILLION dollars!
Now that many of America's jobs have gone overseas, the price of gasoline is shooting through the roof, and tons of people are losing their homes, do we find that Americans are learning their lesson?
Not at all.
Instead Americans are squeezing everything they possibly can out of their credit cards. Total credit card debt in America is now over 790 billion dollars, and it is increasing at a rate which is four times faster than earlier this decade.
Instead of showing restraint, Americans have jammed the accelerator to the floor.
Prices are increasing dramatically while wages are not. Jobs are being shipped overseas and factories are being closed. America's largest banks and financial institutions are teetering on the brink of failure. Homes are being foreclosed at record rates. Personal bankruptcies recently hit an all time high. And what is the answer that the politicians are giving to America?
Spending even more money and getting us into even more debt.
It is time to face the truth.
The American Dream has gone "bye bye" and it isn't coming back.
And there isn't anything that John McCain or Barack Obama can do to stop it.