Economics and Investing:

A picture is worth a thousand words: Graph of Four Bad Bear Markets. Based upon house prices, commercial real estate prices, and stock P/E rations, I’d say the markets have another 50% or more to fall, and the painful process may take another eight to ten years. And that is just to reach rock bottom, There may be another 10 years of climbing back up out of the hole that “Easy Al” Greenspan and his successors dug for the planet. (Link courtesy of Jesse’s Café Américain blog, and brought to our attention by SurvivalBlog reader Ben H.)

Thanks to Thomas A., who set us the link to this piece at Seeking Alpha: China Trying to Break the Euro?

HPD flagged this piece by Mish Shedlock: Bernanke Admits Fed Is Clueless and Banks are Zombified. HPD quips: “Mish is getting funnier as Bernanke gets more absurd.”

Items from The Economatrix:

How Can the US Economy Recover Without Manufacturing?

Wall Street Sinks as Obama Warns of Oversight

GM Posts $9.6B 4Q Losses; Burns Through $6.2B Cash

667,000 New Jobless Claims; Continuing Claims Top 5.1 Million

The Light Dims at GE

Governor of B. of E. Says “Impossible to Say” How Much Needed to Shore Up Banking System

Depression in the East Points the Way for the Rest of the World

Hungary on Brink of Bankruptcy

Gold Coin Shortage as Demand Soars

US May Break up AIG to Keep it Afloat

The Next Big Financial Meltdown

Laid Off? No New Job? How Bad Can it Get?

The Spectacular, Sudden Crash of the Global Economy

Worried Investors Want Gold On Hand “The global recession and worries about the stability of the financial system have sent the price of gold to $1,000 an ounce. But more surprising is that buyers are taking the unusual and expensive step of taking possession of it.”

The Price of Protection (The Mogambo Guru)

Plus Side of Stupidity (The Mogambo Guru)