Debt Crisis Growing Worse by the Day – Wall Street Underground

By Nick Guarino | August 10, 2008

This economic crisis that started with home mortgages has now spread like a metastasizing cancer and is attacking the entire financial system. The only thing that is holding banking system and financial institutions together are government guarantees.

The question the government doesn’t want you to ask is this: How can a government that is already $100 trillion in debt guarantee anything? If you had a dead-beat brother-in-law who was always borrowing money from people… and he told you, when you were facing a foreclosure on your home loan, that you didn’t have anything to worry about because he’d “cover” it… wouldn’t you say the obvious truth? What do you mean you’ll “cover” it? You don’t have a penny to your name! You’re borrowing from every loan shark in town!

That’s what we’re facing today. I would be derelict in my duty to you if I did not report what no one wants you to hear. When I face GOD – and, yes, I believe we will all face Him — I do not want to have to explain that I knew what was about to happen and did warn my fellow man, especially the ones who trusted me (oftentimes for decades) and paid me to tell them the unvarnished truth no matter how unbelievable it may seem.

I want you to know that things are getting far, far worse. The enormous, out-of-control debt system in this country is finally coming down like the house of cards we have warned you for decades that it is. Mortgages, car loans, credit card debts, commercial loans, student loans, every kind of debt imaginable are finally being defaulted upon. And there is no government bail-out that can possibly save the day.

I make no bones about this. I have seen this day coming all my adult life. If the truth be known and as crazy as it sounds, I knew about it as a boy. I cannot explain all this but I always knew this would happen. I feel like I am in the audience of a mystery show and am watching the play unfold. The people around me are puzzled by the mystery, but I am not since I have a copy of the script in my hand and have had for decades.

I believe with all my heart and soul that the debt melt-down we talked about for years has started and there is no stopping it. And, yes, I also believe I know how to navigate through all this. It’s also true that I could be full of shit and could be wrong. My only question to you is this. With what you have seen so far and what you are seeing now, how wrong could I possibly be? After all, at bottom my recommendations are rock-solid conservative. I am not telling you to do anything with your core wealth but put it in the most conservative places you can find, including first and foremost your lumpy mattress.

Most of all, I want you to always remember this: The Federal government and Wall Street, the architects of this debt orgy, are desperate to get their greedy hands on your cash. The rigged rallies in commodities like oil and gold and soy beans you have seen the commodities rally were their desperate manipulation to raise cash. They are not your friends. In fact, they are your enemy.

The politicians are going to be under enormous pressure from the masses as they lose their life savings. It will be just like the dot com wipeout but 100 times worse. The people will cry for blood. People with no debt and who have ready cash will be the only pool of wealth the government will be able to lay its hands on. When you lay on your lumpy mattress at night, I want you to think about that.

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