The Pundits suggest that there is still a chance of avoiding a recession. Institutions are dropping dead everywhere. Our government is spending 700 billion that it doesn't have. Banks are not lending money. Home owners are walking away from their homes. The Governor of Kalifornia is begging for an 8 billion dollar loan to keep the State operating. Maybe it's my imagination, but aren't we a little past the word recession?
If you don't like the word recession or depression, how about the word DISASTER. That way, we don't have to worry about whether or not we are "Politically Correct."
Common sense suggests that this whole ball of wax is in meltdown mode. There is a very good possibility that several European banks may fail in the near future (like this weekend). The Euro cannot survive unless it can be inflated. That isn't going to happening. Do you give the "Spend thrift Italians" 100 billion Euros and the "Frugal Germans" nothing --I think not. Nationalism will kill the Euro. The Euro is based on principles that don't allow for politicians to inflate the currency. No Paulson type bailout for them, look for a collapse.
Has the world ever experienced a financial crisis of this magnitude anywhere in history? Not to my knowledge. The real certainty is that no one knows what will happen next. It's not hard to figure, what ever is next, won't be something pleasant that will leave you with a warm and fuzzy feeling.
Asian markets are taking a beating. It looks like the Dow is about ready for a blindfold and a cigarette. It's a little like Christmas in reverse. What you wanted, you didn't get. What you got, you didn't want.
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