The sky is falling!
Uh, yes, in fact it is.
If this were just limited to one market, it wouldn’t be a “sky is falling” situation.
But the markets all over the world are selling off hard, and there’s no resolution in sight to the banking crisis.
Too many people here on FR kept thinking that the signs in the markets for the last year were MSM doom-n-gloom. Some of us kept telling people here that they should be looking at the bond markets, that there were bad, bad signs out there.
Some people were banned from FR because they were deemed too “doom-n-gloom” and alarmist.
Well, get ready for President Obama, because what you’re seeing is a for-real market crash. Stocks, bonds, commodities, you name it. Everything is being sold and sold hard. McCain clearly is out of his depth on this issue and just hasn’t a clue how to respond.
What you’re seeing is a deflation as a result of de-leveraging. If this isn’t turned around soon and consumers are convinced to spend, you will see at least a very bad recession.