Stock markets worldwide came crashing down today, as investors large and small rushed to the relative safety of cash. You know there's trouble ahead when analysts are recommending that 85 percent of investment portfolios should now be in cash. After months of denial, it is like the Dutch boy took his finger out of the dike. One can actually hear the bubbles popping as I write. First the housing bubble went, then the credit bubble, and now the market bubble follows. Pundits are talking in terms of "panic" and "tail spins." Read The Economist's analysis of the conundrum here.
Oh the markets will attempt a rally, they've fallen so low we're all desparately seeking a bottom. But I am not opptimistic. Looks like a real crash to this observer. And I should know. I was standing on the corner of Wall Street & Broad in NYC on Black Monday in 1987 when the Post's headline screamed MELT DOWN. It is interesting to note that the trigger for this worldwide event was the enormous "thud" made by president Bush's recently announced stimulus package - which has obviously been already judged as too little, too late. Surprised? I didn't think so. As if this buffoon and his minions saw this coming or have the horsepower to turn it around. Not happening. So get ready for the grief. Because there will be grief. And say so-long to the American dream for now.
Looking for someone to blame? Well, that piece at least is pretty clear. Blame Republicans and their very greedy corporate sponosors. In power for 8 years, this sorry crowd has ruined the economy, plunged us into countless, costly wars, sent all of our good jobs overseas while adding trillions to the national debt. Yes, I'm bitter about this because it was all so avoidable. A little less greed, a little more responsibility and respect and we would have avoided this disaster completely. But no. It wasn't to be. I urge my US readers to hold the appropriate government officials responsible at election time. To those outside the US, my apologies on behalf of my countrymen for this economic calamity that has been visited on us all by large, multinational banks and corporations.