World Leaders and the Financial Panic of 2008

World leaders have had a busy weekend as they attempt to come up with a coordinated way to inject liquidity and a measure of confidence into the world financial system. The leaders seem to have their own financial panic of 2008 underway as they feel the need to quickly act and do something but don’t seem to have any better idea as to what to do than you or me. How comforting.

Leaders from the G-7 and G-20 nations as well as the IMF are all discussing what should be done to at least slow down the world wide bleeding. The great challenge is that the de-leveraging process now underway discloses in a very nasty way just how far off course the world financial system, lead by the irresponsible people in the United States of America government, was over the many years of deregulation, poor oversight, and bubble creation.

Worldwide Financial Panic of 2008

We are uncomfortably close to the beginning of the great worldwide financial panic of 2008. You had better buckle your seat belt, put on your crash helmet, and get ready for a bumpy, and for many, very unpleasant ride.

“We are going to see economic times the likes of which no living person has seen,” Trends Research Institute Director Gerald Celente said, forecasting a “Panic of 2008.”

“The bigger they are, the harder they’ll fall,” Celente said in an interview with New York’s Hudson Valley Business Journal.

Celente, who correctly forecast the subprime mortgage financial crisis and the dollar’s decline a year ago and gold’s current rise in May, told the newspaper that the subprime mortgage meltdown was just the first “small, high-risk segment of the market” to collapse.