Seems like the bailout needs a bailout.
Some say the stock market has been greatly overpriced for years and it should drop to 7,000 - 8,000 range to reflect the actual value of the stock.
Even after the money markets start to function again, the overall credit contraction is going to be painful. The economy is now officially worst then a mother in a Disney movie.
America’s debt-based economy has a psychological requirement for increased consumer spending. Much which is based on the assumption of future wealth. The idea of “I can put this item on credit because I am anticipating a new job or a raise or a bonus that will pay, in the future.” If that promise disappears the deleveraging downcycle can take years. The next step should be an aggressive series of Federal spending reductions and tax cuts to reform cash to consumer pockets and get them to spend again. Also we better hope that constructing alternative energy can provide the same sort of sustainable infrastructure growth that our early century public works projects did. Except the problem that American industry has no catalyst right now.
Tech is over. Manufacturing is seen as best done in foreign nations, Finance has officially collapsed and Biomed is seen as “evil”. Where is the next growth area? Alternative energy better be more then awesome.
It seems that our economy is going to turn into a "service economy" where most people will earn thier living off "services" instead of farming or manufacturing. Once the financial system collapses most of us are worthless.
The whole situation has all been foretold in the lyrics of a great song.
Temporary lay offs.
Temporary lay offs.
Good Times.
Easy credit rip offs.
Good Times.
Scratchin' and surviving.
Good Times.
Hanging in a chow line.
Good Times.
Ain't we lucky we got 'em.
Good Times.
Yes, Good Times indeed......
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