The banking system was put into an upheaval. Fannie Mae and Freddie Mac virtually disappeared overnight. Major banks went under. One day they were vibrant and the next day a bigger bank purchased the remaining assets for small amounts. An insurance company linked with mortgage securities also went under.
In the meantime the securities industry or should I say the stock markets in the United States and also abroad collapsed and then the next day they had an all time high for a day. Joy and sadness, up and down. Can anything come to the rescue.
Yes, our rescue is coming in November around the Thanksgiving time. Stories of the turnaround will resonate for milleniums on how quickly the turnaround happened. Innovations. Innovations. Innovations. Alternative Fuel sources which were being worked on have finally claimed the headlines. The price of oil thus is plummenting. Happy are all in the world because the United States is happy. Well, some in the world who are depending upon oil are not happy. Is this temporary or this is permanent. They are speculating. Some airlines are worried. They speculated on the price of oil remaining high. They lost when the price of oil came down. Their only hope now may be bankruptcy. Will it work. Can someone else in the airline industry buy them. No, the contract is too ironclad. No one will try. Can the assets be purchased. Can the landing rights be purchased. Can the jets be purchased. What is the new going rate.
Detroit is working on advancing production of the GM Volt but production is scheduled for the 2010 model year. Ford has other ideas which they are ready to put into production for the current model year. Will this date put the Volt out-of-date. Are the innovations from Ford going to bankrupt GM. Will Ford buy GM. Does GM have other innovations to apply to its list of new car development. Will the new innovations eliminate the need for tires completely.
Other innovations are encouraging speculators to invest in new technologies. Will the alternative fuel industry remain alive if the price of oil goes to “rock-bottom”.
Funneling of cash to terroist organizations seems to have stopped while individuals attempt to recover personally from years of oil production of which now has a low value. Terrorist organizations have made advances toward a peace truce. Can this be real. The price of oil. Will it hit $20 or $30 per barrel again.
The government has started a huge project in solar to build a 20 by 20 miles solar panel in a desert. Bids are out to the states for cooperation. Will the final coverage be 10 by 10. A 20 square mile coverage is supposed to be able to supply all of the electrical needs of the United States. If 10 by 10 then other sources of electricity will be able to be encouraged for production. Internal security I believe dictates scattered placement of electrical venues. Electical cars will demand more and more electrical needs. Innovative homeowners have now been allowed to pull money out of their IRAs or Roth/IRAs for home solar cell electricity sources.
A national disaster has turned into cooperation between the political parties. Everyone is now on board. The unity was strengthen when two countries tried to rattle their sabers. The unity was deafening. They backed off. The strength of a United United States was too much for them to overcome.
It only took a short time for years of struggling innovations to come in the forefront of completion.
Medical innovations or alternative medical innovations have also been developed and abundant amount of cures to once struggling medical science will soon be common place cures. Who needs to worry about health insurance. It is almost like you just need to eat an apple. The solutions are readily available.
The greatest times of the United States are yet to come. Keep innovation compounding. And if you don’t believe this then pray God will quickly answer your prayers. When a nation prays, God listens. Or better yet look at www.kimclement.com for a more precise knowledge of what “will” happen.
Keith Ljunghammar 
God how I wish above was happening. Here in Europe, people aren’t even protesting. They are just putting their faith in government intervention. What makes me most sad is the fact that what you write is not only possible, it is what I believe is inevitable if the governments of the world stop meddling with the economy.
And here in Sweden people are patting themselves on the back, explaining what a good move it was to save the banks in the 90’s, by the state taking over ownership. The “swedish model” of socialism being adopted worldwide is not a success, it is a clear cut way towards depression. What no one knows is that the swedish model is based on the fact that the socialists have been forced to become more and more economically liberal throughout the years, out of fear that people wouldn’t vote for them. That is what is keeping us alive. Sadly, we now have a more center-right government, which, to ensure votes, is moving constantly to the left. No one believes in what is right anymore, they just believe that they are right because people vote for them.
Save capitalism!
But in Sweden I believe one of my relatives does have a bank. All I know is that he received a bank as a gift from his dad who is also my great uncle as a 25th birthday present. I really should be working for him because I probably would be making more money. His father my dad’s uncle created the system in Sweden whereby workers would be getting a set amount of wages and the companies did not bid on work in the construction industry but instead were told what they would be paid for the project. Engineers developed the cost structure and the companies had to either accept or reject the amount of the bid.
This worked for the industry at that time and the Swedish government and the workers made more money per capita than anyone else in another country. Sweden was number one.
But adjusting the financial system to that same scenario is dangerous.
However, this financial crises is definitely going to be short lived. Innovations from companies will take over and America will once again be number one in worldwide economies and success will thrive by the new year. Workers will be working again. I have even submitted proposals to Congressional candidates for what I think will stimulate the economy.
[…] – Financial Crisis Short lived. saved by […]
The Swedish socialist model probably what was created here in the United Sttes as well. In order to get people into housing they reduced the barier to entry into a home. Then as prices for homes were going up the risk was nil. If they could not pay, no big deal, the banks could sell it to someone else at a profit. But when the prices went down the continual payment of the mortgage and the hampening of the economy forced the marginal economic purchasers to fold their tend and pay either their credit cards or their mortgage. If they paid their credit cards then that bill would be reduced. If they paid their mortgages they still had to pay their credit cards but with what money and if they didn’t pay their mortgages the government would put them into low income housing and their payment would actually be less than if they were being responsible and making mortgage payments.
The socialist part fo the political wings in the United States government are in control and have full control of revising legislation and have continually been warned and have ignored these warnings. The socialist program they explained needed to continue.
So you see the danger in the banking system in Europe just has not come to a head as of yet. Maybe it will just take a little bit more time to unravel. Sorry about your dilema. Your saving grace is the somewhat higher interest rate of your central banking system of 3.5% versus our 1.5%.