Thursday, October 9, 2008

Debt clock runs out of digits, Dow Loss, AIG still asking for more

The digital counter marks the national debt level, but when that passed the $10 trillion point last month, the sign could not display the full amount. The board was erected to highlight the $2.7 trillion level of debt in 1989.”
If this isn’t a clear sign of a weak economy, maybe the fact that the Dow closed below 9,000 is the sign for you. But its all good, right? AIG still has access to money, using 70 billion of the 85 billion government loan. The 700 billion dollar bailout was signed after 110 billion of pork spending was basically added to the first bill plus the FDIC will now guarantee $250,000 in bank accounts. Wow, that was worth vetoing the first time.
Can we call this a depression yet? The current Government administration has been very careful not to call the economy over the last few years a depression, always referring to it as a recession. I think we can call it a depression now. Of course the next question is will it get worse? Yes it will. Why? Oil production will at sometime slow down (predicted in the next five years), we are still supporting large scale conflicts in the mid-east and most importantly no large scale changes are happening to alter these facts. Welcome to the new, new global world economy. Just beware of Chinese made goods.

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