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If last week proved anything, it’s that the stock market is on a hair trigger.
It bobbed; it weaved; it did the rope-a-dope — crashing 600 points one day only to soar more than 400 points the next, only to crash and rise again.
Even for those of us who have little invested in stocks, it was hard to watch. A sad spectacle akin to a once-proud, but now punch-drunk, fighter struggling to stay on his feet.
In the end, of course, not much has changed.
Europe is still a mess. The PIIGS nations — Portugal, Ireland, Italy, Greece and Spain — are closer to collapse than ever. The European banks that loaned them money are, too. And if they fail, it’s likely they’ll take the entire European Union down with them.
Although this great government debt crisis is not quite as advanced in the United States, our economy is also a disaster zone. Just like the PIIGS, America is drowning in debt. Our economy is slowing. Consumer spending is waning. Unemployment is sky-high. Government revenues are shrinking. And government debt is still piling up at a near-record pace.
But recently, it became clear that Uncle Sam is in even worse shape than many European nations. Because several days ago, Standard & Poor’s downgraded U.S. debt for the first time in history.
Worse: As was just demonstrated in the great debate over the debt ceiling, our leaders seem far too busy quibbling, finger-pointing and jockeying for political advantage to even give a passing thought to how they might save us from the financial nightmare that Europe is living through.
As a result, our own banks are taking a drubbing. The average U.S. bank stock is now down 30% in 2011. Bank of America lost nearly that much on Monday — and then again on Wednesday.
And just as I’ve been predicting, gold — the world’s ultimate safe haven investment — has shot the moon; hitting $1,808 in the past few days.
Heads Up:
The Gala World Premiere
of our all-new video on this crisis
IS COMING THIS WEEK!
We’ve just put the finishing touches on America’s Financial Doomsday: Protect Yourself and Profit — and the gala World Premiere of this all-new, blockbuster video begins early this coming week.
In this shocking video, we show you why the most dangerous phase of this great financial calamity is now beginning.
We document the monumental event that now threatens to trigger the ultimate financial doomsday — and plunge vast numbers of U.S. families into the nightmare of poverty, homelessness and hunger.
We show you how a handful of Americans will use this crisis to build substantial wealth.
And we give you the things you can do right now to help make sure that you and your family get through this disaster with your wealth intact and still growing.
America’s Financial Doomsday: Protect Yourself and Profit is free — just watch your inbox early this coming week: The link will be in your regular issue of Money and Markets.
Best wishes,
Mike Larson