“we need an “economic crash” to reset our value system and remind people what is most important in life.”

Wow Contraman!

I see political attention focussing on this still incipient crisis. Hillary Clinton shed some crocodile tears on the fate of all the poor borrowers, there were segments on NPR/PBS radio & TV. Even President Bush spoke rationally on the topic – No bailout, no increasing GSE limits/purrchases.

Global liquidity is getting squeezed. Europeans are crying uncle. Their central bank injected $130B to prevent a run. (Fed injected only $10B so far). Since US needs to borrow $2B per day to keep going, this is going to get very expensive soon.

I think this may turn worse than S & L crisis. Significant recession/stagflation seems all but certain. It is starting to look like late 1970s/early ’80s rather than late 80s.

Contraman is going to get his wishes. But it will be very ugly. In the end, he will be liking to retract his wishes!