Found on Voy Forum

Florida at the Precipice of Depression

 Snip

Banks cannot afford to take 50-75% hits on mortgages, and that is exactly what is happening.  The precipice is here, and we are on it.  Recent reports about home sales rebounding are insignificant, because no one is accurately describing the growing inventory build-up.  Banks simply don’t have the margins to deal with this crisis.  And for that reason, we will see massive bank failures and this will snowball into a complete economic meltdown.  If you have an argument against this scenario, I’d love to debate you on a live conference call.  We deal with the banks.  We know what is going on before the numbers show up at the Fed or any analysts desks.  We deal with the public, so we hear the desperation at all levels.  I listen to grown men cry about how to explain to their families that they are losing everything.  I listen to people that I fear are on the verge of suicide.  I read about people committing crimes simply to put food on the table.  Spend a week with me, and you’ll understand why there is no feasible way to avoid a Depression. 

The banks will fail, just as they failed in 1929 . . . but worse because this time some of this leverage is as high as 40:1.  Insurance?  Where is that going to come from?  There is no insurance that can cover the cost of the coming bank failure, unless we just print more money.  We are two generations removed from 1929.  I am talking about Biblical 40 year generations.  And when you look at who we were in 1929 and who we are now, you’ll realize just how ugly it is going to be.  In 1929 there was a stronger base of family values.  There was a work ethic that we don’t see today.  The generation from 1929 - 1969 grew up with a totally different set of values than the generation from 1969 - 2009.  The first generation worked their way out of the Depression.  Today’s generation doesn’t understand work.  We only understand creative financing and how to live off the next generation.  And sadly, that is where we are today.  We are at the precipice, and we are going to push our children over the edge because we lived so far above our means and ignored all of the warning signs.  We lived just like the Romans in their final days.

http://tinyurl.com/5cwvme