- The US Government has seized control of FANNIE MAE and FREDDIE MAC, the nation's two biggest providers and guarantors of home mortages, in order to keep these failing giants "afloat," lest they precipitate the collapse of the home mortage market, and of the aftermarket for mortgage portfolios and securitized loan packages (which markets have been reduced to a bargain basement of deeply discounted, downgraded paper). Of course, the initial reaction of the capital markets to Government coming in to rescue the housing market, was to rally a bit -- but we all understand what generally happens to quality and accountability when the Government "saves" something; it usually exacerbates and delays the inevitable, and at even greater expense to the economy-at-large;
- Lehman Brothers, the nation's fourth largest investment banking firm, has forecast tremendous losses after investment portfolio writedowns, and is discussing a plan to sell off divisions of its operations in order to raise money to meet its obligations -- to remain solvent.This does not bode well for Lehman Brothers, nor does it bode well for either the US debt or equities markets;
- The ultimate effect of these telling events is a decrease in the liquidity in the capital markets, a decrease in the value of economic aggregates (the capital value of all stocks and all debt instruments), a decrease in the ranking of the US Dollar versus other hard currencies, and a diminution in the capital formation process in general.
The good news is that a flight of wealth into metals, both precious and non-precious, has already begun, and is further bolstered by the failures in the capital markets and the instabilities in the fossil fuels markets.
While some regard thorium (in its slightly grey oxidized state) to be a tradeable non-precious metal, we, at THORIUM ENERGY, INC. consider it to be most highly precious. We can say this in light of; the ailing capital markets, the worldwide energy crisis caused by dependence upon fossil fuels, and on the high probability that atomic energy fueled through Thorium will continue to be the preferred direction in which all of the smart money seems to be headed.
--THORIUM ENERGY, INC.