Submitted by Tom Jeffries, Dec 11, 2007 12:28

There is a fascinating and rather scary precedent for what is happening to the Real Estate market. read up on the Kondratieff Wave principle, and you will see, in plain English, what happens when people's greed takes over.

The Bust that has started, and written about so eleoquently by the esteemed Mr. Dorfman, is going to make the Depression of the Thirties look like a walk in the park.

There are reports that some banks and lenders are leveraged 1000 to 1. The Bank reserves are so small, that even a small run at the withdrawal window will show the banks to be insolvent.

I believe many banks are insolvent now - and if you read Mr. Larson, or John Rubino, or Jim Rogers or Mr. Dorfman, you know what's coming.

You will walk to the ATM at your bank - and it won't be operational.

The Northen Rock debacle in England is small potatoes compared to BoA or CITI going down the tubes.

James Turk says to buy GOLD, a lot of people are advsing the same thing.

One thing is for sure - get some cash OUT, reduce debt and profligate ways - cut your dependance on overpriced vehicles, and forget the fancy granite countertops and LCD TV's - because with the advent of the coming food shortage, banking bust, and ongoing drought in much of the American Southwest, the hard times are here: and they are going to be with us for a generation.

If you think people are worried NOW, just keep your eye on the VIX, and watch the stress.

When you see LIBOR spreads up to 200 BP, and 25 BP is where we ere only a few months ago - the Bond market is telling us - DEPRESSION.

Doug Casey, who I have had the pleasure of interviewing a number of times calls it the "Greater Depression".

At a speech this past July - he used "Street Fighting Man" - The Rolling Stones, as his musical theme.

I hope Mr. Caey is wrong - but I think Sean Rakhimov, a silver analyst in Vancouver said it best " I want to watch what's happening on CNN - from a place a long way away from the mean streets'.

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