October 27, 2007 (LPAC)--As the mortgage and dollar crisis continues to accelerate, some, more sane financial traders will step forward, echoing what we've been saying for decades. Yesterday at PrudentBear.com (which is both a publicly traded mutual fund and an investment news provider), Doug Noland's “Credit Bubble Bulletin” had a very curios title, “Structured Finance Under Duress.” Don't let that banker-ese title scare you, the Bulletin title should have actually read, “California Mortgage Bubble Is Finished!”

Here are some relevant excerpts: “...some key dynamics are in play. With California now at the brink, uncertain but huge losses are in the pipeline for jumbo, 'alt-A,' and 'option-ARM' mortgages – loans that were for the most part thought sound only weeks ago. The market began to revalue the top-rated CDO tranches this week, a process that should only accelerate. 'AAA' is not going to mean much. If things unfold as I expect, a full-fledged run from California mortgage exposure could be in the offing.”

Or, how about this one? “The nightmare scenario - where the market abruptly comes to recognize that the leveraged speculating is hopelessly stuck in illiquid CDO, ABS, MBS, derivative and equities positions - doesn’t seem all that outrageous or distant this week. Unfortunately, today’s Ponzi-style acute fragility (as was demonstrated this summer in subprime, asset-backed CP, SIVs and the like) and speculative dynamics dictate that he who panics first panics best.”

Really, this should come as no surprise to the astute LaRouchePAC.com reader. The cat is out of the bag, and no one, really, who actually has any sense of humanity, will defend the system any longer. So, whats the problem here you might ask? Read the final sentence of the 1000+ word report, “We’ll see to what extent the Fed is willing to spur increasingly destabilizing global stock market speculation and dollar liquidation in false hope that lower rates can somehow mitigate Structured Finance Under Duress.”

Lower interest rates, or raise interest rates, the issues still remains; throw it all in the trash! There is no solution from the inside.