Greed has been replaced by fear; euphoria, by panic; trust, by suspicion

http://www.moneyandmarkets.com/Issues.aspx?Sinking-Rapidly-Into-Depression-2381

Sinking Rapidly Into Depression

by Martin D. Weiss, Ph.D. 10-06-08

This is the crisis that will change the course of history.

Even before ivory-tower theorists have gotten around to officially calling it a "recession," the U.S. economy is already sinking rapidly into depression.

And even as the government has vowed to embark on a $700 billion spending spree to avert financial panic, over $1 trillion in wealth has been wiped out in just five days of stock and bond market declines.

Cheap credit, the lifeblood of the U.S. economy, has nearly vanished from the scene.

Borrowing from Peter to pay Paul — the norm for decades in the consumer and corporate world — is becoming next to impossible.

Greed has been replaced by fear; euphoria, by panic; trust, by suspicion.

Everywhere, we see vicious cycles of mutual financial destruction:

Falling prices driving homeowners to abandon their homes ... and fire sales on foreclosed homes driving prices into a steeper tailspin.

Strangled consumers falling behind on their credit cards ... and credit card losses compelling banks to choke the available credit for consumers.

Wall Street panic smashing Main Street business ... and Main Street business sowing the seeds for more Wall Street panic.

:somber:

Every cloud has a silver lining.

We're in the money.

Put on a happy face.

Just direct your feet to the sunny side of the street.


Feeling better yet?

I'll try again: gold diggers of 2008.