How this economic crisis will play out

No one knows how this economic crisis will play out. For sure, it will have an ending that few can imagine.

From Zerohedge comes this rehash of our crisis and a possible development of future events:

Here is the compare and contrast courtesy of South of Wall Street:

• April 2007 | New Century goes down  SEC Filing
• June 2007 |  Bear Stearns suspends redemptions from its High-Grade Structured Credit Strategies Enhanced Leverage Fund  – (With that name, who put money in this thing? Enhanced Leverage…)
• July 2007 |  Bear Stearns liquidates said funds U.S. Bankruptcy Filing -
• August 2007 | Countrywide borrows the entire $11.5 billion available in its credit lines with other banks. Fitch Ratings downgrades &    SEC Filing
• January 2008 | Countrywide goes down – BofA ‘buys’ them
• February 2008 | Northern Rock goes down UK Treasury Release  
• March 2008 | Bear Stearns goes down – JPM ‘buys’ them  Federal Reserve Press Release
• July 2008 |  SEC bans naked short selling in the securities of Fannie, Freddie, and banksSEC Press Release
• September 2008 | Fannie and Freddie are wiped out
• September 2008 | Lehman goes down – Merrill is ‘bought’ buy BofA
• September 2008 | SEC bans on short selling in the stocks of all companies in the financial sector PR
• September 2008 | All types of facilities, guarantees, and swap lines are extended (TAF, AMLF)
• September 2008 | JPMorgan ‘buys’ Washington Mutual
• October 2008 | Wells Fargo ‘buys’ Wachovia
• October 2008 | TARP comes to life  H.R. 1424 | Public Law

Where are we now?

• February 2010 |  EU and Greece reach austerity plan
• April 2011 | Portgual asks for a bailout
• October 2011 | Greece ‘haircut’ ruled voluntary – MF Global Goes Down – CDS now meaningless
• December 2011   |  Greek default no longer the world’s focus as Italy collapses
• January 2012 | Greece defaults
• March 2012 | Germany to leave the EU
• June 2012 |  French banks fail – French yields soar as bond auctions fail

How reasonable this forecast is, remains to be seen.

Not included is the effect on the US. Europe will not collapse without precipitating a similar event in the US.

History moves slowly, especially for those living through it. However, when these or similar events actually begin, they are likely to come faster than this timeline suggests. The entire world will change in a week!