The race to the bottom is on.
This is the biggest crash, in slow motion progress, since 1930. It will soon show up in jobs data...falling home prices will continue (I expect 50% from peak) unwinding the entire global financial system.
The smart money has already run up the value of commodities...you only hope is FDIC insured savings, losing a REAL interest of 4-5% a year.
Of course, that beats losing everything.
JP Morgan bought Bear Stearns for 3 cents on the dollar. Even at that firesale price, the US Gov guaranteed JP Morgan they would absorb their losses on the deal—think about that one and tell me things aren’t really bad. Where is our already broke Government going to come up with all this $$ when they can’t sell their devalued treasuries? And the Bear Stearns failure is probably the first of many to come. Something is going to give soon. It will not be pretty.