There's a classic sequence near the end of the 1997 movie Titanic that depicts the ship's sinking.
As the bow of the ship takes on water and slides beneath the ocean, the stern of the ship rises out of the water and ends up vertical. There's a pause as the stern just bobs there in the middle of the ocean leaving the remaining passengers afraid and confused. Then, after a brief pause, the ship quickly sinks.
As I watch economic and political news unfold,
It's difficult to imagine an economic situation more dangerous than the one in which we find ourselves.
The collapse of the housing market has exceeded that of the Great Depression because we have too many houses and not enough demand, housing prices may yet fall another 25%, and there are still millions of houses in foreclosure. All the debt problems that caused the crisis in 2008 haven't gone away, they've just been transferred to the Federal Reserve or continue to lurk on the balance sheets of banks. Sovereign debt bailouts in Greece, Ireland, and Portugal are exploding.
In addition to out of control federal spending, we have states such as California and Illinois that may go bankrupt or seek a bailout--and both of those states are far larger than Greece.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for August 27th, 2014 | John Ransom
In Other News: Warren Buffet's Secretary Unavailable for Comment on Burger King Tax Move | Michael Schaus
In Other News: Rare Sighting of the Elusive President Obama in His Natural Habitat, the Golf Course | Michael Schaus
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for August 25th, 2014 | John Ransom
In Other News: Law "Enforcer" Eric Holder Understands People's Mistrust of Law Enforcement | Michael Schaus