Banks Are Grabbing Every Dime They Can to Try to Keep Their Doors Open – Wall Street Underground

By Nick Guarino | August 11, 2008

You can’t have a depression and an inflation at the same time. It’s either one or the other. Despite the fact that Wall Street wants to keep you confused, the price increases you have seen in everything from oil to gold to soy beans are a temporary blip on the radar screen. They were a result of the desperate attempt by the dead broke financial institutions to corner the commodities market and raise some fast cash.

I can’t say this enough. The banks are desperate. They are in their death throes. The government is letting them do anything to get their hands on some cash. Eventually, the Feds will let them freeze your bank, money market and mutual fund accounts. I realize this sounds extreme to some people. But every single week that goes by, we see more and more dead broke financial institutions admit that they are posting billions more in losses on their balance sheets.

Their whole act is getting absurdly predictable: They proclaim they are done writing down worthless derivatives debt and don’t need any more money…. and then, within another month, they are right back at it again, fessing up to more losses and begging for more capital from the Fed and the capital markets freezing everyone else out. This has been going on for a year now. Despite the media spin, things are getting worse, not better, as the mountain of debt Wall Street created in the evil Frankenstein derivatives factories goes bad. There is not enough money in the entire world to cover the losses hidden in the world’s biggest financial institutions.

Here’s what you must understand: There is a FORTUNE to be made as the messes they made implode. You have already seen the bubble real estate market they created crash. The automobile market is imploding with car lease debt crashing in value. Their latest little scandal — the attempt to rig the world’s commodities markets — is blowing up in their sleazy faces right now. There is a hell of a lot of money you could make as gold, oil and a whole host of commodities wipe out.

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