Finacial Crisis?

December 3, 2007

Innovating Our Way to Financial Crisis – New York Times

Krugman says that we are in for a nasty recession as the credit markets outside of ‘sub-prime’ mortgages is drying up.  No one is willing to give American firms a loan because they are afraid of not being repaid.

The numbers for November are looking a little scary (discounting the stock market which is more of a global player and less sensitive to American woes).

I think a good point to make is that the “boom” of the Bush years will come down to an aberration caused by lax regulations that caused a huge bubble in the financial sectors.  That explains why the average American didn’t see the fruit of the ‘boom’ there really wasn’t one and the stockmarket ‘boomed’ because of globalization and the fact that the rest of the world may go on fine without us.

It is my contention that we will be in the first post-WWII depression inside of the next two to three years.  Yippy!

E

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