Economics and Investing:

Tony W. sent this: Even ‘Dr. Doom’ Is Scared: Economy Much Worse Than Roubini Predicted

Bill from Ohio spotted this: 5000 Dow? 500 S&P?

From Kevin A. come this sign of the times: Manhattan Apartment Buyers Abandoning Six-Figure Deposits Rather than Closing on Deals.

Reader Kris N. mentioned in a recent e-mail: Over the last few weeks I have heard several politicians say that credit markets need to be opened up so Americans can start spending more to improve the economy. Is this not like Marie Antoinette proposing the solution to the peasant’s bread shortage is to have them switch to cake?”

Juni zeroed in on this article: AIG failure would be disastrous for global markets

From Aaron N.: The Most Important Messages From the 4Q GDP Report

Items from The Economatrix:

Dow Falls Below 7,000; Lowest Since ’97

AIG Posts $61.7B 4Q Loss, Bailout is Restructured [JWR Notes: The American taxpayers will be the “insurer of last resort”, for CDS derivatives and other exotic instruments for many years to come. This debacle is far from over, and the MOAB‘s proportions are sure to expand. further.]

HSBC to Scale Back US Lending

140,000 British Manufacturing Jobs to be Lost This Year

FTSE 100 Falls to Six-Year Low

HSBC Shares Dive 19%

BofE to Pump Major Cash Into the Economy

Financial Crisis Hits World Markets

We Need Shock And Awe Policies to Halt Depression


Is Ireland Fated to Be Another Iceland?

JP Morgan/Chase Forecloses Despite Promised Freeze

CNBC Analyst: Global Bank, Global Currency Within 15 Years

The US Economy: Designed to Fail

Worst Job Losses in 60 Years Expected

Global “New Deal” to Lift World Out Of Slump [JWR Notes: Re-inflation of the credit bubble might forestall some outward manifestations for a while, but then the eventual economic collapse will be even more traumatic! Traditional liquidation must be allowed to happen, to work malinvestment out of the marketplace.]

Hungary Warns of “Economic Iron Curtain”