The upheaval in financial markets has left many Americans stunned. How could this have happened? Even worse, how could this have happened with so few people giving us any kind of warning that it was possible? I certainly did my best to tell everyone, but in the end there’s only so much anyone can do. Now I’d like to explain why I think this happened and why the Five Crises are so tightly related – and what we can guess this will mean in an election year.
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Category Archives: Money
Economics and commerce, all built from scratch.
Recovery?
It’s been a long week, and as I write this there’s another day left in it. The way big surprises come on weekends, you’d think that Friday will be a day when everyone smart wants to be very sure that their portfolio doesn’t contain anything that could get hit while you sleep. When do we get out of this mess and back to a normal life? When do we have a Recovery?
Liber Lectoris
Many of my friends and acquaintances have asked me lately how I was so sure as long as a year ago, and especially two months ago, that there would be a financial meltdown. To be fair, they’ve only asked me because I’ve been bragging about my prowess on this and other topics including why the I-35W Bridge collapsed and what the RNC would bring our town. Yes, I shoved my success in their face, so a few responded. I would like to have a steady gig in this field, so please excuse my arrogance. Besides, I know I wasn’t 100% right (at least so far).
The Implosion Begins
Sunday night has become a big time for dealmaking on Wall Street. You can tell how bad everything is when the paper is signed only when the market is closed. As I write this, two monster deals are happening:
Lehman Brothers (LEH) is preparing to file for bankruptcy, and
Bank of America (BAC) is preparing to buy Merrill Lynch (MER).
Five Crises
During this brief break between conventions, we should all take some time to reflect on what all the noise is about. The stakes this year are unusually high because the USofA is not only much weaker than it has been in a long time, but there are signs that we are at a major inflection point in our history. The reason for both of those is the same: there are Five Crises that are paralyzing our nation that will define the next administration and possibly the next generation. They are all related, and they are all perilous.
