If the economy tanks now due to a worldwide crash, do not expect this to benefit

[Kelvin Mace]

33. China might be the trigger,

but failure to regulate the markets will be the warhead. Despite all that happened from 2007-2009, the Democratic leadership simply refused to:

1) Regulate the derivatives market, a method of investing as about as reliable as astrology in which we now have somewhere between $710 trillion to $1.2 quadrillion at risk.

2) Regulate the mortgage/housing market, thus the real estate bubble is being re-inflated with entirely predictable results when it pops AGAIN. This time Wall Street is buying up all these houses that were foreclosed on and creating holding companies to rent them to the very people they kicked out, and are going back to the same "collateralization" model to "bundle" houses and re-sell to clueless investors who buy with complete confidence that they will get bailed out like last time when the "last fool standing" scheme blows up.

3) Regulate buying on margin, so as to prevent people using borrowed money to invest in the two schemes. Margin debt reached a half trillion dollars last month, up 70% from Sept 2008 the last time economy imploded.

Yes, China may be playing with fire, but our financial house is made of oily rags and balsa woods while Wall Street hands out books of matches to every toddler in America and tells them how cool fire is. They have also made sure that the fire marshal's have loads of money in their pockets to keep them looking anywhere but at the coming conflagration.