Tuesday, December 02, 2008

The world economy is in crisis

I know the world economy is in crisis.

It’s hard to imagine there are many people who don’t know this. Yet today, when the US government confirmed that the country had been in recession since 2007, the markets plummeted and the brokers and analysts interviewed all said it was this “news” that triggered the further decline. Am I missing something here? Aren’t these folks supposed to know more than we do about what’s going on in the markets? Are we to believe that they were hoping to read this morning that the US economy had been performing above expectations? What medications are these people taking? And we’re supposed to trust our money and our future financial security to these people? If there was ever an argument for more government regulation then the behavior of the banks and marketeers in recent months is more than evidence enough. World governments have flushed the banks with cash that they refuse to loan, brokers, dealers and investors worldwide seem to be running around in a state of panic selling, selling, dumping … they appear to have no confidence whatever in the house of cards they helped construct while the rest of us are left to do what? Stock our cellars with canned goods and bottled water and await the plague of locusts? I’d be interested in knowing your thoughts.