The Fed can't admit that the potential shocks it's worried about have already materialized, because that would trigger the very panic the central bankers hope to avoid
Baltimore, MD (Vocus) October 22, 2010
In the rush to foreclose upon millions of U.S. homeowners, big U.S. lenders resorted to apparently fraudulent corner-cutting strategies – actions that now threaten to derail the nascent U.S. recovery according to a new article from Money Morning.
That’s right. Just as it seemed as if the U.S. economy was finally and firmly in a recovery mode, the U.S. financial system is once again facing a problem that could undo all the gains.
The fallout potential is so numbing and the actions that birthed it so scandalous that commentators have given the crisis the Watergate-esque title of “Mortgagegate.”
In the aftermath of the burst U.S. housing bubble, in the rush to foreclose upon millions of U.S. homeowners, big U.S. lenders resorted to apparently fraudulent corner-cutting strategies as part of an assembly-line repossession grab. The scandalous details are only now starting to emerge.
However, it’s the potential damage to the U.S. economic recovery – and, by extension, to the U.S. stock market – that worries Money Morning Contributing Editor Shah Gilani, a retired hedge-fund manager who’s also a respected expert on the global credit crisis.
“The Fed can't admit that the potential shocks it's worried about have already materialized, because that would trigger the very panic the central bankers hope to avoid,” Gilani says.
Indeed, it’s entirely possible that “Mortgagegate” will derail the nascent U.S. rebound.
That’s why, as a service to investors, Gilani predicts what specific sectors will be hit the hardest. Furthermore, he details a simple-but-effective strategy for individual investors to deploy – a strategy that will let them reap the profits should the market continue its recent uptrend, but one that protects them in the case of a horrific downturn.
Find out all investors need to know about “Mortgagegate” in:
“What You Don’t Know About “Mortgagegate” Could Crush the U.S. Banking System.”
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William Patalon III
105 W. Monument St.