Dear Readers: This could be gloomiest day of the month. And here is why… As of March 19, 2008, CBSmarketwatch ran one of the scariest headline ever: The Great Unwind has begun:

As markets and economies de-leverage across the globe, investors should avoid companies and countries that have grown to rely too much on borrowed money, they said. That means favoring public-equity markets over hedge funds, private-equity and real estate, while leaning toward emerging market countries and away from developed nations like the U.S., the bank’s global equity strategy team advised. Within equity markets, the financial-services should be avoided because it’s still over-leveraged, while other companies have stronger balance sheets, the strategists said….. “The banks have a long way to go,” the strategists said. “We would continue to avoid the sector while they are de-leveraging.” Other companies are in much better shape, having rebuilt cash from strong earnings since 2003…. However, even though some companies may not have much debt themselves, they may be exposed to over-leveraged customers or highly leveraged investors, Citigroup warned…. “Similarly, many hedge funds have generated healthy uncorrelated returns by adopting cautious underlying strategies, but applying significant leverage. Again, that looks unsustainable in the current environment.” Leveraged economies, like the U.S., should also be avoided, in favor of emerging market countries, which have reduced borrowing, the bank advised….

Well, thank you Citigroup for finally acknowledging that the world credit crisis resulting from lenders’ own criminal doings in the first place has entered its last phase, which reminds us of the Shades of 1929.

The debt orgy is coming to an end. It only is a matter of time… not ‘if’ but ‘when’.

Unfortunately, the recent tax “rebates” implemented to stimulate the economy and the socialist Wall Street bailout will not address our ever growing triple deficits. Nevertheless, the stockbrokers and Co whose machinations brought upon us the day of reckoning will be enjoy driving their ‘ferraris-porsches-lmaborgini-mazerattis‘ for a while longer and at our expenses - rest assured!
But it would be unwise to throw more oil onto the fire. Let’s analyze another fact mentioned by Robert Novak in his editorial Finance’s “New Day”.

The Federal Reserve’s unprecedented bailout of Bear Stearns was crafted not at the White House or Treasury, but in secret by a New York central banker whose name is unknown to Washington power brokers and was a Clinton administration presidential appointee..

America was conned - who will pay? Larry Elliott, working for the guardian.uk, asks

Indeed - Where does it leave us?

Fixing the mess and to prevent it from happening again is a non-partisan issue that goes beyond the future of America. It is the entire world that is shaking and could be crumble down completely at any moment.

Please do not miss any in depth reports by Danny Schechter, for further info.

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