"IndyMac Bank's assets were seized by federal regulators on Friday after the mortgage lender succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures". Huffingtonpost

I have been screaming on the top of my lungs about the ongoing financial crises for several years and my concerns have been validated ever since last Augusts’ market declines. Year over year housing prices have decreased by 15% but I will suggest that when this whole bear cycle is done housing will decline by 50%. Some areas will do better like here in Western PA which prices tend to be less exaggerated on the way up and down. In some areas of the Markets like in Southern CA, NYC, Boston, FL, Vegas, will see declines of over 70%. Looking at technical analysis I have already published on another blog that the DOW will decline to around 8400 and even the potential of 7600.

Thus, it is no surprise to see Freddie and Fannie this week drowning in their crumbling hyper-leverages assets. Moreover, failures of financial institutions like Bear Stern and now InydyMac Bank will become the norm over the comer two years. Just think of the social, political and financial implication of the DOW declining to such level!  If I was an incumbent politician I would be very scared about keeping my current job regardless of party and would begin drafting and pushing policy that would address issues that arise with extreme recession and depression like conditions.

Unemployment will skyrocket up and possibly over 25%!!! The best place to financially protect oneself is to keep assets in cash, gold, silver, and government treasuries. However, for most Americans wealth preservation is out of reach because most are in debt or over leveraged with "things". I wait with anticipation to see how the government performs because I suspect they will not bail out every day Americans because they are not Bear Sterns.      

Originally posted to Kcaridad on Sat Jul 12, 2008 at 07:32 AM PDT.


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