The Credit Crisis Could Be Just Beginning

[Issachar]

Massive levels of debt underlying the world economic system are about to unwind in a profound and persistent way. http://www.thestreet.com/pf/newsanalysis/investing/10380613.html

I hope most of you will take a few minutes to read this whole article. It is an important read imho.

Issachar

[Issachar]

How "massive of levels of debt"?

The liquidity factory was self-perpetuating and seemingly unstoppable. As assets bought with borrowed money rose in value, players could borrow more money against them, and it thus seemed logical to borrow even more to increase returns. Bankers figured out how to strip money out of existing assets to do so, much as a homeowner might strip equity from his house to buy another house.

These triple-borrowed assets were then in turn increasingly used as collateral for commercial paper -- the short-term borrowings of banks and corporations -- which was purchased by supposedly low-risk money market funds.

According to Das' figures, up to 53% of the $2.2 trillion of commercial paper in the U.S. market is now asset-backed, with about 50% of that in mortgages.

When you add it all up, according to Das' research, a single dollar of "real" capital supports $20 to $30 of loans. This spiral of borrowing on an increasingly thin base of real assets, writ large and in nearly infinite variety, ultimately created a world in which derivatives outstanding earlier this year stood at $485 trillion -- or eight times total global gross domestic product of $60 trillion. Issachar

[4JesusLove]

Great news! :(

[Issachar]

You know what? It's not good news and it's not bad news. It's just info concerning what is going on in the world. It's definitely bad news for those not in Christ and will become even worse news as time passes. Even if what is in this article is totally correct or partly correct, it matters not. Jesus is our Lord. In Him is rest. In Him is contentment.

I know this is "preachin' to the choir" so to speak, but these are a few verses I keep in mind when reading up on all these "end times" things in general.

Habakkuk 3:
17 *Although the fig tree shall not blossom, neither shall fruit be in the vines; the labour of the olive shall fail, and the fields shall yield no meat; the flock shall be cut off from the fold, and there shall be no herd in the stalls:
18 *Yet I will rejoice in the LORD, I will joy in the God of my salvation.
19 *The LORD God is my strength, and he will make my feet like hinds' feet, and he will make me to walk upon mine high places.

Job 1:
21 *And said, Naked came I out of my mother's womb, and naked shall I return thither: the LORD gave, and the LORD hath taken away; blessed be the name of the LORD.

Philippians 4:
11 *Not that I speak in respect of want: for I have learned, in whatsoever state I am, therewith to be content.
12 *I know both how to be abased, and I know how to abound: every where and in all things I am instructed both to be full and to be hungry, both to abound and to suffer need.

1 Timothy 6:
6 *¶But godliness with contentment is great gain.
7 *For we brought nothing into this world, and it is certain we can carry nothing out.
8 *And having food and raiment let us be therewith content.

Issachar