Congrats to everyone as we all now own a piece of Big Shitpile. In predictable fashion, the Dems caved to Mr. 27% and gave him everything that he wanted. $800 billion disappeared today, all for no reason at all. Of course it's all most likely nothing but fake money, the government being broke and all. The truth is, this bailout plan will be about as successful as the Iraq war has gone. A week from now, the markets will still be in the toilet, the credit market will still be frozen, the same banks will be on the verge of going under, more people will have lost their jobs and America will have sunk lower and lower. Of course, we won't be alone. Europe is on the verge of going under as well, Ireland, Iceland, Greece and Portugal being the first to go with Italy and Spain not far behind. The Brits are panicked, Germany now appears to have bought into Big Shitpile and eventually the Chinese are going to want to be paid back.
As bad as things are, they will probably get much worse. The dow at 10,000 is just arond the corner and we should drop below that in the next week or two. The Christmas shopping season is sure to be horrendous as most Americans struggle to just pay the bills they have now. Home prices will continue to free fall and more and more Americans will find themselves owing more than their homes are worth. Any homes on the market will just sit there as banks refuse to make loans. The same goes for Detroit as banks aren't about to lend money (i.e. car loans for buyers) to anyone but the most credit worthy. I still stand by my prediction that next year will see either General Motors or Ford fail and be bought out by Honda, Nissan or Toyota. The airlines continue to flirt with insolvency as high oil prices make profitablity impossible. The days of air travel are almost over.
Lest you think it's all bad news, well, it is. With Peak Oil upon us, we simply will not have enough energy to ever repay all of this debt. Our economy will continue to falter, falling more and more each year as the world comes to grips with a low energy world where growth is no longer possible. The governments of the world will do whatever it takes to some how prop up business as usual but much like this current crisis, they will fail. Oh, all the stops will be pulled out, the powers that be will try everything to keep things going but the truth is, it just won't happen. Hell, we'll be lucky to keep the lights on, much less make an economic recovery. As always, will the last person left turn out the lights, it's been one hell of a party.