[Marxism] where is the economy heading?

Dbachmozart at aol.com Dbachmozart at aol.com
Wed Jul 16 18:40:54 MDT 2008

The Financial Tsunami: The Next Big Wave is  Breaking Fannie Mae, Freddie Mac 
and US Mortgage Debt

By F. William Engdahl
_Global Research_ 
wTz3CVLQ==) , July 15, 2008

The announcement by US Treasury Secretary Henry  Paulson together with 
Federal Reserve chief Bernanke, that the US  Government will bailout the two largest 
guarantors of housing mortgage  debt—the Fannie Mae and Freddie Mac—far from 
calming financial markets,  has confirmed what we have said repeatedly in 
this space: The Financial  Tsunami which began in August 2007 in the relatively 
small "sub-prime"  high risk US mortgage securitization market, far from being 
over, is only  gathering momentum. As with the Tsunami which devastated Asia 
in wave  after terrifying wave in December 2004, the financial Tsunami we are  
witnessing is a low-amplitude, long-wave phenomenon of trillions of  dollars 
of financial securities being unwound, defaulted on, dumped on the  market. But 
the scale of the latest wave to hit, the collapse of  confidence in the two 
Government-Sponsored Entities, Freddie Mac and  Fannie Mae, is a harbinger of 
worse to come in what will be the most  devastating financial and economic 
catastrophe in United States history.  The impact will be felt globally.  
full --  
(http://www.globalresearch.ca/index.php?context=va&aid=9588) > 

Financial Collapse Edges Closer

By Martin  Hutchinson 

16/07/08 "Asia Times" -- -- The financial  crisis in the United States and 
worldwide entered a new phase this week,  as Fannie Mae and Freddie Mac, the two 
huge US home-loan institutions,  began what appears to be a "death spiral" 
similar to that which claimed  Bear Stearns four months ago. Fannie and Freddie 
are unique institutions  and will almost certainly be bailed out by the 
long-suffering taxpayer.  However, for the first time, the specter has been raised 
of a general  financial meltdown, such as the US managed to avoid in 1933 but 
Sweden  succumbed to in 1991. 
full --  <_http://www.informationclearinghouse.info/article20295.htm_ 
(http://www.informationclearinghouse.info/article20295.htm) >

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