Voice from the Past

[sleightgirl.livejournal.com]

Not really a cartoon, so if it's not allowed...sorry.

Remember back in Desert Storm when we decided not to invade Iraq?

Watch on YouTube

Comments

[desidono.livejournal.com]

"With luck it may not be too big, but there will be a correction."

Yes, with luck. Unfortunately, the financial state of the US gov't is going to make things much more difficult to deal with if the correction is a large one and we slide into a heavy recession. We've already got a massive amount of debt, the deficit is still pretty big, and in times of economic need cutting social programs isn't the solution... but neither is raising taxes.

[johnny9fingers.livejournal.com]

The Goverment debt isn't the problem here though...which doesn't mean it won't have an effect eventually. It's personal mortgage defaulters. Mind you, that will have a knock-on effect with credit card bankruptcies etc and will lead to more bad debt. NY closed after rallying, but world markets are still down and dropping in cases. My guess is we'll lose at least 10% off the Stock Market, but hopefully not more than 20%. Wall Street may yet find a smaller margin of correction. I hope so.

[johnny9fingers.livejournal.com]

Try sensible figures, Ninefingers: 3-5% loss. And the FTSE' already rallying. Good.

[desidono.livejournal.com]

I'm saying that if worse comes to worse, that the personal debt defaults (and those who invested in the housing market, plus the high risk hedge fund difficulties) cause a contraction, that the US in in bad financial shape to deal with it. You're spot on about the correction happening, I just believe that the economic problems are much much bigger than what we're seeing right now on the surface and they will have big impacts on the rest of the economy.

[johnny9fingers.livejournal.com]

There are huge amounts of debt in the system, and a lot of them don't appear to be anchored - a pass the parcel routine has left no-one knowing whose holding the ticket. The Fed has come in to help too, there's something afoot.
However, I wonder about the war-chest for next year. I know defence spending is ringfenced, but...