A Second larger Tidal Wave of Financial Disaster is on its wayby
Kief Lewis
Campaign spokesman for the Charlie Champion for President Campaign
The sub prime fiasco:
Has precipitated a drastic fall in real estate values.
A dramatic rise in foreclosures.
Billions of dollars in write offs by financial institutions.
Has contributed to the free fall of the dollars value.
Has exposed fatal flaws in both the lending and the insurance industries.
Has exposed flaws in the SEC regulations,monitoring Wall Street lending policies.Especially
concerning margin loans for the purchase of stocks and even worse the low equity required for
trading commodity contracts.
Has exposed a serious lack of regulations concerning the commodities trading exchanges,
which were never intended to become speculative casinos.
Trading commodity futures was intended to be a marketplace for related industries to hedge
and lock in the price of necessary raw materials. Todays traders have no intention of taking
delivery of a barrel of oil, or a 100 bushels of corn..
This subprime fiasco has pushed us right into the early stages of a recession..