Things are getting unhinged again, just like with the subprime collapse, but this time at the level of sovereign defaults. What happens if an EU country defaults on debt? Unthinkable? So was the collapse of Lehman Brothers and Bear Stearns.
And if the European situation spins seriously out of control, as it may well do early next week, the likelihood of a double-dip recession (or significant slowdown in the second half of 2010) increases dramatically.
I was happy to see your blog. I think there is strong agreement the economic house of cards is about to come tumbling down and we are headed for a massive population die off (from 6 to 2 billion worldwide). I find myself ruminating (obsessing?) on my own blog What is to be Done (apologies to V.I. Lenin) http://stuartbramhall@aegauthorblogs.com. Is the end going to happen abruptly (when China dumps our Treasury Bills) or will they manipulate financial markets so that the economy slowly hemorrhages to death?
China may need the US as much as we need them. Where else will they put their money? Euros? Plus they have huge problems of their own.
But yes, the House of Cards seems about to crumble. Again. But on a bigger scale than before.
Will add your blog to my feedreader.