The Savings and Loans Collapse 2.0

http://www.sfgate.com/cgi-bin/article.cgi?...ed=rss.business

Two possible scenarios can easily and most likely will occur in Scenario A. Joe Taxpayer (you and I ) get screwed in Scenario B. Joe TaxPayer (you and I) get screwed again..

When the Savings and Loan collapse occured what actually happened is about 700 banks went bankrupt because of the laws determining interest rates - as a result in order to cover the closed banks the FSLIC department simply covered the losses of the deposits and then added the charge to the federal deficit! - It means in order to cover the money on deposit they simply raised taxes / lowered services and increased their federal debt. So in the end the end user payed... and then the FSLIC went OOPS! WERE BANKRUPT - and rolled themselves into the FDIC that all the banks crow about are sure to protect you - NOT! - This is a possible scenario when banks start to fail when faced with financially crippling lawsuits when the court lawsuits are filed...

Check it out for yourself here : http://en.wikipedia.org/wiki/Savings_and_Loan_Crisis

But here is the situation - they have peddled trillions in sh*t loans on ARM mortgages - which are basically like a balloon loan you would get off a unethical car loan like the ones were you don't pay for 6 months / get a free trip to Hawaii!! and all that garbage... However instead of giving them their correct rating (C or lower) they mis-labelled them deliberately as AAA+ loans and then fooled international investors to buy trillions of dollars in them... Nice hey - but the problem is under US contract law if their was deliberate misrepresentation or false dealing in the loan the contract is VOID and must be repurchased at face value - the value of these bad bonds is 10x the value of all the US banks put together. So somebody has to eat it and I will show you in both cases it will be Joe Taxpayer...

So in scenario A they loose in court and then are faced with huge penalties and a pile of US banks go Chapter 11 bankrupt - then the internationals demand the deposits of the depositers in lue of the bad bonds - tying up depositor assets into a legal limbo for years while they fight and squabble over it... So the depositor either looses his deposits or FDIC steps in and issues the currency to cover the loss - which they then roll into the federal debt all over again... Just like they did in the Savings and Loans Collapse - So Joe tax Payer gets it one way or the other...

But in Scenario B is just as bad because the Government can foot drag itself and that is exactly what it is doing by legislating this latest Good Hope Program it is a deliberate legal hurdle meant to keep Bernankes friends from real jail time... But it doesn't work either because if the the United States decides to break contract law - then the international community will come in and dump US dollars crashing their economy... and will also cease trading with the US - So Joe Tax Payer gets it in the end again.. Because productivity in the US is so LOW and nothing is made here the dollar would devalue immediately against the lack of products and the huge amount of currency... So the dollar becomes worthless either way!

I figure this will be unraveling all year - Remember NONE of the banks will tell you they are awaiting their insolvency or that they mis-sold ARM bonds and are about to get sued -

In ALL SITUATIONS THE END RESULT IS A SERIOUS COLLAPSE IN THE VALUE OF THE US DOLLAR - Silver will stop deflation, I do not know how well Canada's financial system is in this...

Make sure you goto news.google.ca and be watching you bank or the banking sector (especially in relation to lawsuits) it is going to get ugly.. Some are going to become VERY rich if they have enough sense to completely get out of the system - others are going to loose it all... Its up to us as people where we want to be in all of this..

Silver is heavily undervalued right now - so it is a good purchase... and it will be worth ALOT more in the future. It is going to take some time for this system to lurch and fail - but the point is maybe to start watching the company holding your deposits like a hawk.. The smartest thing to do if the banks get in a weakened position is to buy silver bullion... with WITHDRAWN ASSETS (aka take the money physically out of the bank and physically buy silver bullion)..