Bond Market Collapse is Imminent

Imagine a country such as Venezuela announced that it was bailing out an investment bank, then just days later said it was nationalizing its mortgage industry, and then just days later that it was bailing out its biggest insurance company, and then just days later its government pledged 700B$ to inject into its failing banks, and then just days later its stock market fell 20%. Would you feel comfortable having your money invested in such a country, in its stock market, in its bond market or in its currency?

I hope you answered “No” or “Hell, No!” to the above question! So why should you feel any different about the situation if the country is called “America”? I am going to show you that the US Bond market is on the brink of collapse and with it will come the collapse of the currency, just as you would expect to be the outcome of such ridiculously inflationary policies in any other country.
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H.R. 1424 - Congress Sells Soul to the Bankers & Gives Americans the Boot

After two weeks of anguishing debate, Congress has passed and President Bush signed a massive plan to save the financial industry and the economy at large from an unthinkable free fall. Now, the world holds its breath, seeing if it will work.

Passage of the $700 billion financial rescue package came after Treasury Secretary Henry Paulson at a meeting last month shocked congressional leaders into action by warning of pending economic collapse without immediate congressional intervention.

Paulson said after the climactic House vote Friday that he already had staff working out details and was lining up advisers from outside the government to get the money flowing.

The immediate response to the 263-171 vote was not promising. Wall Street, which plunged a record 778 points after the House initially rejected the bill last Monday, fell 157 points on Friday as more economic bad news, such as a jump in job losses, outweighed news that Congress was finally coming to the rescue.

Still, Bush and Congress made clear that the legislation was urgent and vital. “We have acted boldly to help prevent the crisis on Wall Street from becoming a crisis in communities across our country,” Bush said after the House vote. He acknowledged that “our economy continues to face serious challenges.”

“We know that if we do nothing this crisis is likely to worsen and put us in a slump the likes of which most of us have never seen,” said House Republican leader John Boehner, R-Ohio, who worked with House and Senate Republican and Democratic leaders in a rare bipartisan response to what both parties saw as a dire threat to the nation’s economic well-being.

“We are addressing the real pain felt by Mr. and Mrs. Jones on Main Street,” House Speaker Nancy Pelosi, D-Calif., said. “They are why we must pass this legislation today.”
http://waronyou.com/2008/10/hr-1424-congress-sells-soul-to-the-bankers-gives-americans-the-boot/