Busted: Bankers and The Global Economy

July 7, 2008

Wall Street, Stocks and the Great Depression

Soaring gas and food prices and a stock market that just endured its worst June performance since the Great Depression are draining consumers’ wallets as well as their confidence. That’s what RBC Cash Index says.

Confidence is down, down, down. Fear is up, up, up. Apparently, Americans are lining up with the latest news of economists. Bleak economic times appear to have become self-reinforcing. 18 per cent think their local economy will strengthen in the next six months. Who they polled is certainly a question. Regardless, if you listen to the latest round of economic predictions, the bad news is expected to run through almost 2010 without any economic reprieve.

Crunch is up and finances are down because the world has come to rely on credit to do business instead of the generation of real profits or earnings in the business world. During tough times, even the hardiest firms have to look hard at the brass tacks of any purchase. Most Americans aren’t involved in any of this speculation. They live in the real world of constrained budgets and impinging joblessness. Wall Street is having another round of bear as reality continues to hit home. There is always hope. Wall Street is still working on a new cash machine as they prepare for a new European Union stock exchange. One can always hope.

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