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:
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.]
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.]