Econ Quake

Shifting faults. Germany can’t hold together tectonic States. Euro on the brink. Asia shaky. America reverberating from shock waves of government dysfunction. Confidence cratering. Liquidity tight long term. Banks, large corporations doing more with less. Big profits. Sitting on cash. Where to put it? What’s going to replace dinosaur industries? There’s nothing on the horizon to mend the cracks. The world is flat, a whole earth economy. It’ll be quite a while ’til the global aftershocks subside. Market value 10,500.

I sound like Art Bell. It’s the end of the world. Well, it might be until at least 2012. Then, either the Mayans are right, or there will be a new seismic bubble.

S&P Downgrade? Who is the least qualified to cast judgment? Rating Agencies. See Paul Krugman’s litany here. I agree. See SideBizness.

7 Replies to “Econ Quake”

  1. Those Mayan were pretty smart! Did you ever read the short story “El eclipse”? I love to use that story with my students!


  2. PS. You can find the entire unabridged story – it is very short – online by Googling the title. The author is Monterroso.


  3. It is the one completely crazy, nutty, bizarre superstition that gives me pause. Imagine all the math d astronomy they knew waaaaay back then!
    And there are kids graduating from HS without being able to do simple math.


  4. Ok, ok. Let’s not get too excited here. Yes, a downgrade of our credit rating is not a good thing. But there is no other sovereign entity that is a safer bet. Where’s China going to put its money?

    More important is the gridlock that an increasingly polarized government has created. The “gang of 12” won’t be able to come up with an agreed upon path out of any of this. Consumers aren’t spending. The government isn’t spending. No one is spending so there is no reason for any business to expand its operations (read “create jobs”). We’re in for a long slog.

    BTW – I did enjoy “El eclipse” – in English thank you very much.


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