Wednesday, April 2, 2008

The Trillion Dollar Meltdown

Either way we are only at the beginning of a process of realizing, acknowledging, writing down and accounting for the full variety of financial and real losses that the worst financial crisis since the Great Depression and the most serious recession in decades will entail. So the recent partial recovery of equity markets after the Bear Stearns is delusional; conditions in credit markets and money markets remain extremely strained and the onslaught of weak macro and financial news has not reached its peak yet. So the worst for the real economy and financial markets is ahead of us, not behind us.