The Perfect Financial Storm scenario comes from a movie in 2000 The Perfect Storm”, starring George Clooney and Mark Wahlberg where a Mackerel Schooner is fishing off the coast of New England in 1991. Sebastian Junger authored the book of the same name. The conditions ripen for not one big storm but three big storms converging from three different directions and causing a condition that is rarely seem perhaps once every hundreds years into what is called, The Perfect Storm.  It destroyed the fishing vessel and the men were lost at sea, never to be heard from except by a note scrawled by one of the men while awaiting the destruction that was eminent, put into a bottle, corked and tossed into the sea. They knew their doom.  They were lost because they were in the wrong place at the wrong time and their rudder; their steering was destroyed in the assault.

Perhaps we can look at what is happening in today’s market, today’s economy.  We are seeing some very scary storms brewing and they are not looking good.  The storms that are brewing and coming together to create The Perfect Financial Storm today include things like the sub-prime lending fiasco, increased gas prices, inflation, the new bankruptcy laws, terrorism, war with Iraq, the credit bureau dictatorship, construction – appraisal – real estate – lending fraud, big business fraud, internet scams, government fraud, deceit, lies, innuendos and misinformation on all levels of life.

We are looking at the biggest opportunity for The Perfect Financial Storm in the history of the United States.  What I fear is that the American consumer, the average person, the average family is getting caught in the greed and pillage of big business, big government and big controlling bodies moving to capture as much money by deceit and deception as possible. Buyer BEWARE! Perhaps we can show a case in point.

There are some companies that drive the industry that are now requiring a consumer to have a credit score sufficient to confirm trust in the individual or company.  This is called “level of risk” for the individual or company.  What sounds like a good idea, becomes a problem in application.  The number of credit reports or credit files that are being held within the repositories of the credit bureaus amounts to approximately 205 million files.  Compound that with the amount of individual data for the accounts within each file and you have an incredible amount of data that needs to be verified as correct before being exposed to the public by way of credit reports to lenders, insurance, medical and creditors of all industries.  These industries rely so heavily upon this information, or rather, the credit score attached to this information as to render the score as an altruistic “chiseled in stone” absolute of integrity or level of risk for the individual or company that it represents. 

However… there are some flaws…