Giants of the auto, airline and technology industries ordered emergency action against the global financial crisis on Friday as shares took a new hammering amid mounting gloom.
Even a 1.5 million barrel a day production cut by OPEC failed to stop oil prices falling amid fears of a deep global recession.
Grim news backing those fears came from around the world.
China, Japan and 11 other Asian nations agreed to set up an 80-billion-dollar war chest to fight what ex-US Federal Reserve chief Alan Greenspan called a “once-in-a-century credit tsunami”.
This is really getting laughable. There is a very simple formula being played out: you have to produce before you can consume, and you have to save before you can produce. All efforts to fund consumption without prior savings can only result in activities that require ever greater infusions of credit to sustain, setting off yet another round of malinvestments that will be liquidated in their turn.
Another 80 billiom dollars will disapear down the drain as events work themselves through the system as they will. World weath is fast vanishing and nothing will prevent it.
We’ve had very low unemployment figures and a growing economy throughout the Bush administration. Yet the media has continually portrayed doom and gloom. Throughout the Clinton administration there was ZERO economic growth, yet the media said nothing.
I am convinced that most of this is yet another avenue the media is using to elect Democrats to Congress and the Presidency. I am equally convinced that within a few days of Obama taking office, we will see reports that the economy is improving.