Fear and Loathing on Wall Street!

Today we have witnessed a watershed event...

A major Wall Street House has all but declared insolvency. While such an event was no surprise to Finance guys, who warned that this day would come, I was surprised to learn that the victim was Bear Sterns.

From the AP:

Bear Stearns Bailed Out by Fed, JPMorgan
Friday March 14, 3:44 pm ET

By Stephen Bernard and Joe Bel Bruno, AP Business Writers
Teetering Bear Stearns Gets Bailout From Federal Reserve, JPMorgan Chase

NEW YORK (AP) -- Bear Stearns Cos., one of the most venerable names on Wall Street, turned to a rival bank and the federal government for a last-minute bailout Friday to prevent it from collapsing.

The Federal Reserve responded swiftly to pleas from Bear Stearns that its coffers had "significantly deteriorated" within a 24-hour period as rumors about the bank's situation fueled the Wall Street version of a run on the bank. Central bankers tapped a rarely used Depression-era provision to provide loans, and said they were ready to provide extra resources to combat an erosion of confidence in America's biggest financial institutions.

Nearly half the value of Bear Stearns, or about $5.7 billion, was wiped out in a matter of minutes as investors felt the bailout signaled that the credit crisis has reached a more serious stage, and now threatens to undermine the broader financial system -- and the U.S. economy...

I thought that if any Investment House would go under, it would JP Morgan itself, as they have trillions of dollars worth of derivatives outstanding. And what's worse, many Wall Street and other firms have been dabbling in what Deepcaster calls Dark Liquidity pools that are not open to any meaningful public examination.

Disaster could strike these firms in the blink of an eye, and we wouldn't know it until all Hell breaks lose on CNBC. Needless to say, a paralyzing Market Crash could be the ugly result. Credit is contracting rapidly, and all manner of banks and hedge funds have been feeling the squeeze!

Something else that needs to be pointed out: The Federal Reserve is OWNED by JP Morgan and other elite institutions. Therefore, read this as a case of the Federal Reserve acting on the orders of its Money Masters. Understand that the Fed stands ready, not to protect you, your purchasing power, or your standard of living, but to bail out its owners, the major Banks and Wall Street firms.

Who are, by the way, literally hanging on by a thread.

Today's debacle tells us all we need to know about what the Fed will do from here on out. As a Gold investor, I was concerned that the current Gold rally could end if the Fed decided to either hold or increase interest rates.

However, Dear Reader, the future is clear.

The Fed will continue to pump billions into the economy, and in a ironic twist of Divine Justice, it will have to accept as collateral the hazardous loans that it helped to create, thus putting the Privately Owned institution directly on the hot seat.

The slashing of interest rates will assure that Gold, Crude Oil, and Commodities will continue their upward trend. Indeed, we are now living in the era of One Thousand dollar gold.

Ever increasing commodity inflation, especially in the case of Oil, will strain the consumer, causing our Recession to deepen. Businesses will see their profits fall, which could lead to more job losses. Home foreclosures will continue unabated. The Dollar will continue to sink to new lows.

Everything in our socialistic managed economy depends on artificially manipulated interest rates. And so long as the Fed is powerless to increase interest rates, expect the devaluation of the currency, and the impoverishment of the Average Joe and Jane to continue without mercy.

The Money Masters have really gotten themselves into a jam this time... and unfortunately for them (and many innocent and naive sheeple), they are going down HARD. God's justice is sure, thorough, and terrible.

Dare I say it... this is the beginning of the end of the New World Order (not to mention their weak political feminist handmaidens). It will soon be every useless politician for themselves!

Very soon, the entire world will know that RON PAUL WAS RIGHT.







So!

Don't get caught swimming naked, as Warren Buffet would say.

Talk to your financial adviser, get your portfolio right, STOP buying useless crap, SAVE your money, and BUY assets with real value that are going to APPRECIATE during this downturn.

(Also, for those who want the real reasons as to why Bear Sterns collapsed, be sure to check out Mish of Mish's Global Economic Trends as he lays it down and gives you the Straight Dope.)

Toku9000.