- Craig R. Smith: I believe we are on the edge of another Lehman-type meltdown!
by Kenneth Schortgen Jr, http://www.examiner.com/
On June 2, precious metals expert and Chairman of Swiss America Trading Corporation, Craig R. Smith, sent out an urgent email blast stating that after the economic events that took place on Friday, the markets are primed for a new Lehman-type meltdown, similar to what took place in the financial system in 2008.
In thirty years of overseeing Swiss America I have never before sensed the urgent need to communicate recent events with our 40,000 clients as I do today. This is the first urgent warning I have ever written.
Ominous data about conditions in the U.S. and Europe increased my concerns. Yesterday’s events proved all my concerns to be warranted and and to demand immediate response. Our nation awoke Friday to news that unemployment rose to 8.2% ,with an anemic 69,000 jobs created. The U.S. bond market, the clearest indicator of economic strength or weakness, skyrocketed as yields on the ten year note dropped to an all-time record low of 1.45%. Revised GDP numbers lowered growth to a stall speed 1.9% in 2012 Q1, accompanied by significant drops in ISM and Consumer Confidence. We are, in my opinion, at the start of another summer like 2008, pre the Lehman Brothers collapse.
So why this urgent warning? I firmly believe we are on the edge of another Lehman-type meltdown in the financial industry. Nothing has fundamentally changed that brought on the 2008 crisis. J.P. Morgan announced a $2 billion loss from risky trading practices. Major banks, bigger than ever, are being forced to soak customers with massive fees in order to lend money to our bankrupt government. – Swiss America
Craig Smith’s belief that the economic system is on the edge of another meltdown is being echoed by many high ranking analysts and financial experts. On May 31, Robert Zoellick, the head of the World Bank, issued a warning that we are on the cusp of a return to the panic of 2008, and the very next day, market rumors began to erupt that Pimco and JP Morgan were cancelling summer vacations to prepare for a potential financial collapse in the markets over the next few months.