Financial Crisis: Worse Almost Certainly Yet to Come

Roubini:

It is now clear that the US financial system - and now even the system of financing of the corporate sector - is now in cardiac arrest and at a risk of a systemic financial meltdown. I don’t use these words lightly but at this point we have reached the final 12th step of my February paper on “The Risk of a Systemic Financial Meltdown: 12 Steps to a Financial Disaster” (Step 9 or the collapse of the major broker dealers has already widely occurred).

This morning, serious fears that it is spreading to world markets. And the DOW is down almost 500 points at midday. DOW dipped -700 in the afternoon, and is stabilizing towards -500 now. Finishes at -370.

Ugly. Lots of people getting their retirement savings chopped up.

Interestingly, in his 2005 book "9/11 Synthetic Terror: Made in USA", Webster Tarpley predicted a major financial collapse in the near future, based on how over-leveraged the banking system was.