Let's recap to see how we got to this point, with Bush telling Wall Street that everything will be fine prior to the fire sale of Bear Stearns to JP Morgan / Chase.
Economists Stiglitz and Blimes have a new book called The Three Trillion Dollar War. I assume you heard of it. It confirms that the Iraq occupation spending has had a direct impact on the Treasury and the US economy. Here is the Reuters story linked to the book's release.
And then we had the very quick demise of Bear Sterns. If an employee had his or her nest egg in company stock, then it is all gone.
In the opinion of this layperson, we're just another financial crhttp://www.blogger.com/img/gl.link.gifisis away from a self-sustaining stagflation cycle. Think about the price of oil, the global credit crunch, the sharp fall of the dollar, and now runs on smaller financial markets. It all contributes to unemployment, inflation, and credit crunch for both consumers and businesses. Add-in the tax dollar money brings used to bail-out smaller markets and corporations, ad we have a serious crisis already. It has all the ingredients to be the worst recession since World War 2.
And in case you needed further proof, Jim Cramer is the last man anyone should be listening to. He should be retired. He made his money as a hedge fund manager and he has zero credibility. Ignore him if you aren't ignoring him already.
And it looks like Australia might be screwed, too.