EconomicCrisis.US

The US economy faces a difficult time ahead as consumers stop spending and the fallout escalates from the collapse of the commercial real estate market, economist Nouriel Roubini told CNBC.

Repeating his prediction that the economy faces a threat of a “double-dip” recession and at best a slow-growth U-shaped recovery, Roubini said in a live interview that more banks will fail and residential real estate prices have more room to decline.

Additionally, non-government bonds will face pressure, the securitization market is all but dead, the credit markets are still frozen and consumers will continue to save more rather than spend and boost growth.
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Lehman Brothers

The fallout was fast and frightening, and will reach far into the future.

Almost 6 million lost jobs. A 5,000-point Dow plunge. The government bailing out cash-starved banks. General Motors and Chrysler declaring Chapter 11. The unemployment rate doubling to almost 10%. Consumers getting $4,500 handouts from Uncle Sam to buy a car. Talk of a 1930s-style depression.

To modern-day Wall Street historians, these bizarre events mimic the other-worldly feel of a Ripley’s Believe It or Not episode. But all those unthinkable occurrences made news in the past year. They all tie back to Sept. 15, 2008, the day Wall Street titan Lehman Bros. filed for bankruptcy. The collapse of the investment bank was so shocking it triggered a financial tsunami of such size and scope that it was compared to the Great Depression.
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Austrian economist Ludwig von Mises (1881 – 1973) said:

“There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”

Under Alan Greenspan, Ben Bernanke and successive US Treasury Secretaries, America chose the latter path and now faces the consequences of their reckless, criminal behavior.
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Fraudster stole purse from Fed chief’s wife and then tried to deposit a $900 cheque made out by ‘Ben and Anne Bernanke’

He may be the chairman of the US Federal Reserve, overseeing the world’s largest economy. But even Ben Bernanke can fall victim to the simplest of financial crimes – identity theft by a fraudster who snatched the family cheque book.

Court documents in Washington have revealed that Bernanke’s wife, Anne, had her purse swiped from the back of a chair in a branch of Starbucks in the US capital last year, losing her driving licence, social security card, credit cards and cheque book.
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