The storm clouds are gathering and getting nearer.

All but the most myopic among us should clearly see that an economic meltdown of  the U.S. financial system  of nearly historic proportions has begun.

Foreclosures continue to rise with millions more expected over the next several months.

Home prices continue to fall and it is anticipated that this, too, shall continue in the months ahead.

Fannie Mae and Freddie Mac, government created but shareholder run mortgage giants, are balanced on a financial high wire. Literally trillions of dollars are at stake.

The U.S. government insists there will be no federal takeover of Fannie and Freddie, though the stock market Friday clearly didn’t put much trust in government assurances. The market took a nose dive, though recovered somewhat by the close of the trading day.

Some say we are witnessing hysteria. Others say things are actually worse than many believe.

Things fall apart

Other signs of this financial meltdown are all around us. The car industry is a collective basket case. Higher and higher fuel prices are destroying or are on the verge of destroying entire industries—just look at the airline industry, or what is left of it.

Firms continue to shed employees. Those still employed find their wages worth less and less as the cost of food, clothing and shelter rise.

The globalization of the economy means Britain and many European nations have caught the cold after the U.S. sneezed.

A very large bank based in California is ,as of today, being run by the feds after it became obvious there was a run on the bank underway. The bank was heavily involved in mortgages that didn’t require any proof of income or ability to keep up the payments.

Neither Barack Obama nor John McCain seem to have a clue how to deal with this emergency and, perhaps, that is because there is little any American president could do to avert disaster.

Investors are nervous..some panicked. Homeowners are in despair. Consumer confidence is very low while consumer anxiety is high and getting higher.

One can’t help but feel as if we are at one of those crossroad moments in history; only few have any real understanding where the different roads may lead?