This is what happens when human civilization strays so far from nature that not only can one's life savings be wiped out by intangible events on the other side of the globe, but anyone who walks in with a handbag full of cash from the backyard burial vault (the safest investment right now) is regarded with suspicion by authorities.

The next few years are going to be rough for the average American. Whoever gets the White House on Nov. 4th is going to face a long and hard road of bring America back from this economic mess.

My heart goes out to all those good people who are losing their jobs & homes. This must put a lot of stress on their marriages, family relationships.

On the other hand those people that were prudent and lived within their means and planned for the future will do ok.

not always, there are people who planned and didnt live beyond their means who have lost jobs, homes, savings ect due to the economic problems we are currently facing. You can also add to this list the lose of medical coverage when people lose their jobs.

The $840 billion bailout was supposed to stave off this kind of fallout.  Now they're saying many banks will fail anyway.  Overseas investors are dumping our stock.  Economists are predicting the possiblilty of hyperinflation and the continued devaluation of the dollar against foreign currencies (forget about buying that new TV or car.)  The market is falling anyway.  Banks are using the bailout money to cover their debts and won't be taking on loans or financing anything anyway.  People are losing their jobs.  People are losing their savings.  And our national debt is going up, up, up. 

And all of this might have been prevented if Greenspan hadn't continually lowered interest rates in an effort to prop up an already sagging economy several years ago.  All of this might have been prevented if BOTH of our Republican and Democrat leaders hadn't advocated for deregulation of the banking industry. 

AN OUNCE OF PREVENTION IS WORTH $840 BILLION POUNDS OF CURE.

On the other hand those people that were prudent and lived within their means and planned for the future will do ok.

No they won't.

Those people have 401K and other retirement accounts in the stock market.

Those accounts are down 14% in the last quarter. And this quarter will be much worse.

How is that doing okay?

Paulsen is putting in charge of the bailout the same people who created the crisis in the first place.

http://www.reuters.com/arti...

No wonder the market tanked.

As Federal Reserve Chairman Ben S. Bernanke and his global colleagues fight the worst financial crisis since the 1930s, one danger is looming larger by the day: deflation.

With asset markets tumbling, commodity prices plunging the most in 50 years and banks keeping a tighter grip on credit, the ingredients for a sustained period of falling prices are coalescing. While inflation is still a concern for many policy makers only months after oil and food prices peaked, the risk is their patchwork of rescue and stimulus packages will fail, and prices will start to fall throughout the broader economy.

``The ghost of deflation could be dragged out of the closet again in coming months,'' says Joerg Kraemer, chief economist at Commerzbank AG in London.

http://www.bloomberg.com/ap...

A global recession is already looking more likely, with the credit freeze stirring memories of Japan's decade-long struggle with deflation in the 1990s. So European Central Bank President Jean-Claude Trichet and Bank of England Governor Mervyn King may be forced to follow Bernanke, whose Fed has chopped its benchmark rate by 3.25 percentage points since August 2007 to 2 percent -- its most aggressive round of easing in two decades.

The deflation scenario might go like this: Banks worldwide, stung by $588 billion in writedowns related to toxic assets -- especially mortgage-related securities -- will further reduce the flow of credit, strangling growth. That will push house prices lower, forcing additional losses and making banks even more reluctant to lend. As the credit crisis worsens, businesses will find it almost impossible to raise prices.

The whole of the capitalistic economy revolves around greed and fear. Applying a math formula to basic emotions can be difficult. This is why we have controls (regulations, if you will) on what the market can and cannot do. Take those governors away and we have unsupervised kids in a candy store.

When Bush invaded Iraq, he said that "I've learned to follow my instincts." When he gave a short press statement on the economic crisis he said, "My instinct was to let the market sort itself out." (Paraphrased.) So much for George's grasp on market behavior and his "instincts."

True, there are numerous reasons how this mess came about. Blaming one person or one circumstance is not the whole story nor does it hold all irresponsible people accountable. But as Truman's desk plaque said, "The Buck Stops Here." George had two terms to listen to those monitoring the direction of the market and do something. He didn't. Instead, he followed his "instinct" (whatever that means).

Now, a mattress looks safer than a bank. Problem with that, my savings will diminish anyway because the dollar will decline in value.

The world is addicted to credit. Deflation is a good thing in this case. The free markets have been tainted by the artificial propping up of markets through credit and making an economic system that even the brightest economist can not completely understand.

The stock market is a side show of the meltdown.

Market volume and prices soared to unrealistic heights, way, way above real values.

A severe correction was overdue anyway with shares of most companies trading far above realistic price to earnings ratios and far, far, above true value.

Undeterred by reality, investors gambled and spurred the market up to the breaking point beyond rational heights until the present confluence of economic events led by corporate greed tipped the scales and finally spilled the milk.

When the dust settles, shares of companies should be at real value and investors can begin the cycle anew.

Meanwhile, much wealth will be transferred between larger investors as small investors take it in the proverbial shorts.

Unfortunately, Joe Sixpack has absolutely no control over these circumstances.

That top corporate leaders have been routinely rewarded with multimillion dollar payouts after leading companies to huge losses should have been one sign of the craziness and alerted investors that the economic collapse was near, not that they could have done anything about it, but small investors may have at least been able to convert some of their retirement investments from overpriced securities to more stable assets.

Meanwhile, all we can do is watch as the inflated wealth of the nation erodes to realistic levels.

Now that we've passed our bail-out package, is it too late to take it back?

Just remember who had the biggest grins on their faces when the bailout passed.

"SUCKERS!"

Thanks again, Congressman McCarthy, for voting no.

We need to have a write in caption for that photo.

Good idea, jf.  I'll post it.

She's lacking in the leadership department.

The Empire is crashing and only grasping for the lifeline... which is not there, This bailout is the first step to total collapse, it can only be delayed not avoided, .Take into consideration that the experts on the real estate blogs predicted the final blow to come 2Q 2010 when the commercial Alt-A hit the market, they will walk away in a heartbeat..no emotional attachment to those properties..it`s only business..good business sense..they walk and throw the keys back to the development owners. Look at all the empty commercial spaces now..wait until 2010...total economic collapse.. You are doomed..

" Don`t cry because it`s over, just smile because it happened!"   The Cat in the Hat........

 they will walk away in a heartbeat..no emotional attachment to those properties..it`s only business..

That's the whole idea behind forming a corporation. To protect your assets. Wake up people! There is no such thing as an American company.

Haliburton ?

General Motors, Wal-Mart, Burger King, etc.? AIG?

General motors failing here. Gm overseas doing well..go figure...But GM makes fuel efficient technology advanced modern cars overseas to keep up with the competition, the USA kept getting shoddy quality gas hogs...go figure

jf, we disagree on Obama and basic political/economic philosophy.

But you are a patriot. You have put your a$$ on the line for us and are going to do so in future. You are a patriot no matter who you support or what party you belong to.

Maggie  "Chicken Little Socialist from Sweden Reveling in the Downfall of our Society" OTOH, is unworthy of even engaging you in debate.

There it is.

TINS

The absolute proof that there is "a there there", is in the Obamaphile's reaction to the Ayers "October Non-Surprise"........

"Kill Your Parents" Ayers is but another "take a number" in the long line of poor judgment choices by Obama.

Obama may well win, he has brought the "herd" down to the trough. But as he lines the cows up by "order of need" to drink, he will need to fill it with something he forgot -- WATER!

Water in the form of sound economic underpinnings (capitalism), which when the cows find out there is none (which, after his method for winning has destroyed), they will either die from dehydration or move on to another trough. When that happens, lets hope that there was another cowman who kept the water flowing into trough rather than just destroy it solely to get elected.

Its all about the herd surviving at this point. My money's on the innate instinctual response of the individual cows left in the herd.

Chico: Thanks I appreciate the gratitude. I'm grateful for your service as well and paving the way for us young bucks. I think us younger joes can learn from you and other brothers in arms of your generation. We have lost little of that with gaps in combat by peacetime.

Your economic acumen is greater than mine so I usually don't put my head into the fray with your financial formulas and knowledge of petro markets and financial matters. I don't understand nor do I pretend to. I have limited understanding based on my international relations background.

I have no party affiliation but I am on the Obama bandwagon (surprise, right?). Honestly, I can't really distinguish between the two we have and one would think the differeces would be so distinct in the current political situation. I agree more with the GOP on the economic crisis and I think they were less lockstep with Bush than under Pelosi's leadership. Ideally, I purposely would desire for congress and the Executive office to butt heads. It keeps everybody in check.

Chico: are you a Ranger?

I was lowly gruntitude 11Bravo (10 thru 50) as a US then RA.

I have many close friends (both from VN and thereafter) who went the 11S then 18 route. I have mucho respect for them. Mucho.

While I was in, I mostly just dreamed of  "The World" and that little Husky with chrome gas tank and round eye girlfriends (sorry but thats the way it was -- it was a different time and we didn't have political correctness - maybe we are better off today - perhaps not)

But every day I thank God for you young guys willing to take up arms in our defense. I'll say HI to Fabious nest time I'm down there BTW (I heard he moved?)......   ;-)

50? Were you a 1SG? All the grunts have my respect because I don't like to get down unless I have to. It takes a special person to take up any MOS in the 11 series. I understand the dreaming, though. I dreamed of just being able to see a woman's arms or ankles being in such a theocratic environment so I sort feel your pain.

 I haven't talked to Uncle Fab since my grandmother's 100th birthday in OK. Tell him Bucky's son said hi and he'll know who I am.