Quantitative Easing......

....adding fuel to the fire!






















Rico writes.....

The WSJ today cites a study giving the US a 1-in-5 chance of a depression. Makes me think of Clint Eastwood saying "feeling lucky today punk?"
- NOT good odds.

Twice since 1870 the US had severe financial events where GDP and consumption fell by more than 10%.
- 1917-21 <16%> post WWI
- 1929-33 <25%> pre WWII

Actually, the study looked at the macroeconomic histories of 34 countries and found a 28% probability of a depression happening.

-----

To cheer myself up I read a story on Bloomberg. After 25 bank failures in 2008, and 16 failures so far this year, the FDIC fund balance will approach zero or turn negative because of the 'drain' on their funds. Translation=INSOLVENT.
- Well, until they print more paper money.

While we COULD be out of trouble by 2010 if left alone...thanks to the pressing need to "do something" (read: government intervention making things worse, not better) I'm looking at 2012 before there is any hope of recovery...

Cheers, Team Obama! Happy Days Are Here Again!