40% drop in stock market, Fed lends record $431 billion as of Wednesday

By Daniel | October 9, 2008

40% drop in our stock market and not even in a recession. Clearly, the fake numbers from the govt, govt wants to clam investors but failed. Bears knew the fake numbers would come back to haunt the Bulls. History books will make fun of america’s fake numbers and massive stock market crash and depression. Further confirmation that we are so crooked, it needs to crash—so the crooks can jump out windows and cease to exist.

The fundamentals are driving the fear. People are slowly waking up to the fact that institutions are insolvent, that P/E ratios are *still* ridiculous, and worst of all people are slowly waking up to the fact that the USD is a fiat currency, our government is completely insolvent and that when the derivatives bomb explodes it will take the *whole* economy with it.

All of this propping up and changing the rules has created a situation where the entire economy is a complete and utter fantasy. Seriously, why would I put money in equities when I’m not sure what the Fed and Treasury Dept. are doing behind the scenes? What they are doing in broad daylight is ridiculous enough.

I trust gold. I trust food and water that can be stored, and that is about all I trust.

I’ll trade markets that are still relatively free for now, such as commodities and currency, but if the government puts its greedy paws into that, I’ll find a new free market.

Speaking of USD, We have a fiat currency system, so the government can essentially create money as much as they want to. Our currency isn’t backed by anything real and it annoys people.

Without a fiat currency system not only would we be in a depression now, but we’d have seen at least one or two since 1930. We also would have no US government central bank, so we’d be hostage to private bankers with absolutely no oversight whatsoever - just like we were to JPMorgan decades ago.
“The average daily balance of loans from the Fed topped $420 billion for the week ending Wednesday, also a record, the Fed reported Thursday.”

No one can estimate how huge can Fed’s loan balance increase for troubled banks or institutions, our taxpayers’ money is in danger, while the number can go a lot bigger sooner or later, Fed may have to print the paper for crisis, and then our currency is in danger too.
We’re in a crappy situation, but it could be a lot worse.

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