The two were not only the looming victims of the financial turmoil as one of the largest insurers, American International Group (AIG) also faces the same fate as Lehman but thanks to Federal Reserves which gives AIH an $85 billion emergency loan to rescue them.
As this develops we came to ask if the capitalist system that we currently have now have reached its peak and is collapsing? Are we looking into a new world financial system in the making?
Just last week, about $700 billion evaporated from retirement plans, government pension funds and other investment portfolios. What happenning can be considered the worst economic event in 7 years. Factoring all the economic movements from July 2007 till today, and compare the trend of Germany 1923, we maybe just two weeks away from global hyperinflation.
Our reliable source even told me that Russia is taking the lead in creating a new global economic infrastructure in anticipation of a blowout and that Hugo Chavez may speak out soon regarding the Bank of the South's involvement in creating this new infrastructure. We might be seeing the creation of an alternative IMF-World Bank.
And I definitely agree with my friends presumption that, if US blows out, then China will follow suit due to the extent of their US credit exposure...If China blows, the whole world blows due to their trade exposure worldwide.
Well, if there is one thing that could be done that is to save money, choose your banks wisely and well be prepared for the worst while maintaining a positive outlook.