[Camel Joe]

This economy has two rather bad shocks ahead the first of which is credit card defaults. I expect that shoe to drop from the bulls hoof in the VERY near future, and right on its heals will come the commercial real estate calamity. If certain entities hadn’t miraculously came out with cheery news this past week the markets would have continued their decline. Of course being beholden to the Gub’ment can sometimes cause you to whistle a happy tune when pressured to do so but I digress... Bunker down for the ride to the 4,000 neighborhood before you call the all clear.

[April Lexington]

Your comments clearly describe the deflation vortex. Consumers are over-extended so credit card companies cut back available credit. Spending slows so retail suffers. Retail quits its retail space and commercial loans tank. Meanwhile Geithner is hiding, fetal position, under his desk waiting for the Ancient Paul Volker to figure out what to do to undo Greenspan. Good thing Uncle Miltie is dead! If he weren't, he'd have a heart attack!