A few thoughts crossed my mind. Firstly, most Asian stock markets did not make a new 'low' last week vis-a-vis October 'low', unlike the US markets. Only a few markets made lower 'lows' in November- among them are Australia & Canada.
The outlook is now extremely bearish, with analysts, economists & columnists warning about the world slipping into a sharp recession or deflation, while the word 'depression' is also being bandied about. The first blogger of good standing who made the call that we have entered a depression is David Merkel of the Aleph Blog (go here).
Seriously big problems are now coming out of the woodwork. Before the problem of the Detroit automakers can be discussed fully, Citibank came knocking. In record time, Citibank was bailed out (go here). Now, the Fed appears to be shifting to quantitative easing, or otherwise known as the nuclear option (go here). The laymen in the street can only wonder- when is this nightmare going to end?
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