Worsening Financial Crisis About to Send the Stock Market Over the Cliff! – Wall Street Underground

By Nick Guarino | August 23, 2008

It’s really eerie out there in stock market wonderland. Try as they might, our friends on Wall Street just can’t get the old market manipulations going like they used to. The bear market continues and every rally attempt hits the proverbial brick wall before it even gets off the ground.

I am sitting here waiting to see which is the next major financial institution to publicly fail and for the next stock market death plunge to the ground. It is pretty obvious that no one has pulled a rabbit out of their hat. In fact, there is a monster pounding on Wall Street closet door. Talk about skeletons in the closet busting out!

There is no cash out there — and now even the Sovereign Wealth funds that were the great white hope for broke mega-banks and Wall Street brokers are backing away from any deal the bankers cook up. That means, as the bankers are forced to fess up to the avalanche of mounting losses they face, the capital they need to get to keep their doors open gets harder and harder to find.

We are coming to crunch time. That is where we will see a cascade of wipeouts of mega-institutions that were once deemed too big to fail.

The reality here is that we are rapidly coming to the time when these financial monsters will be deemed “too big to save.” The implications of that reality are astonishing. The losses that are coming stagger the imagination. The financial landscape is about to change in ways few people realize as the greatest destruction of money in history occurs.

Events are about to accelerate. You’re going to be hearing about one financial disaster after another. In our latest offering in Radio Free Wall Street, we discuss the dilemma facing central banks the world over (including the U.S. Treasury) as they are forced to put up (cash!) or shut up.

These central bankers are facing mega-institutions crumbling under the weight of their worthless derivatives and the mounting losses that are getting too big to hide any longer.

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