Mortgage Crisis continues

The following graph provides a stark reminder that the worst is ahead and not behind us:

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The sub-prime loans will wash out by December 21st, 2012.  Just in time for the Mayan celebration.  Continue the defensive posture necessary to weather the volatility ahead.  Washington has no incentive to provide the raw facts now facing legislators.  Managing perception is their only hope to keep the consumer from totally shutting down discretionary spending.  The following graph provides another view of the relative weakness of sovereign debt:

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The fact that the U.S. is even being considered of having vulnerability is new to many of us.  With the advent of the Internet, money will move away from vulnerability much quicker than in times past.  This will reduce the time frame in which a country arrives at a crisis level.  Years turn into months, months turn into days.  Be prepared for “suddenly”.

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