It’s Uncanny really !
Two super Powers,USSR and USA being brought to their knees….the former suffering,both, physical and economic disintegration and the latter in the midst of it’s worst economic crisis…self inflicted,I daresay.
Breaking up of USSR in 1991
Vladimir Lenin founded the Union of Soviet Socialist Republics or USSR for short in 1918.It was born to die ! It collapsed into the Commonwealth of Independent States in 1991…The Soviet Communist Regime Lifespan lasted less than 75 years and died in the same Twentieth Century…The breakup was aggravated,provoked and prompted by the fast plunging economy and several area disputes between many republics that were leading to armed conflicts
Breaking up of USA in 2009
It’s July 4,2009 today and USA celebrates it’s Independence Day…..Nothing really much to celebrate though,as It’s first Afro American President has inherited a disastrous Economy…it’s States are fast disintegrating fiscally…..will each Independently fall !?….California is bankrupt.It is USA’s most populous state with 38 million people and a GDP of US $ 1.8 Trillion,twice that of India alone…as it’s celebrity Governor,Arnold Schwarzenegger pleads “ Our Wallet is empty.Our Bank is closed.And our Credit is dried up “
Expect California State Bonds to be downgraded to junk status…..It’s going to send Stocks crashing in USA ….Danger of other States and Counties living this Californian Nightmare too is very real
Unemployment figures in USA ,that were just released, show a further 467000 rendered jobless in June 2009 ….taking the Unemployment rate to 9.5%,the worst in over 26 years..the figures shoots over 15% if you consider the part time and discouraged workers
We have had 52 US Banks failing this year more than twice in number already from the 25 that collapsed in 2008 and we had three sinking in 2007.As of last quarter end the Federal Deposit Insurance Corp (FDIC) had 305 Banks on it’s troubled List with US $ 220 Billion in assets
Increasing Unemployment is leading to acceleration in Defaults to Banks…this compounded with Banks exposure to high risk Investments like CDOs is a double whammy…Banks have lend and they have invested and both Assets are in default mode with severe recovery problems
It is feared that Employment statistics will only improve and stabilise by 2012…only then will we begin to see a revival in the Real Estate market in USA as Citizens will have monies to invest in Houses…The Asset Bubble that developed in Real Estate is largely to blame for the near collapse of USA’s Financial System….High Unemployment is a hurdle to any Revival in the Real Estate Sector…It is estimated that in USA, the earliest that we’ll get to see Real Estate at prices of 2007 again,will be in 2017…five years after Employment is expected to stabilise