Christmas is past, New Years on the horizon, hope for change lingers in the air like a slow moving mist.  2008 will go down in the history books.  Oh it was memorable, but like a lemon is bitter.  Collapse oh what collapse the economy is fine.  Bush reassured us that the fundamental of the economy are solid.  Head on over to my quotes page and you will see the stumbling follies.  How could so many miss the storm with its blackening clouds enveloping the world to unleash thunder and hail that would bring equities and commodities crashing down?

So, here we are awash in retail inventory priced to go, but to whom?  People are losing their jobs, being moved out of their houses, hoping not to foreclose or go into bankruptcy.  Silently they pray and hope things will get better.  They remind themselves that change is on the horizon, and we will be saved.  However, just as when we overextend ourselves with credit change will do the same, and at an enormous cost to the present and future generations.  How big a pit will be dug I don’t know, but I’d place a large wager that it will be quite large.

Like the eye of the hurricane all is calm in the eye, but the pre and post can be devastating… if you survive.  As we sit in the eye watching the clearing above, the clouds move by, the presents exchanged, and champagne ready to be uncorked.  As we go about our daily lives in the eye we want 2008 to go in the history books, and not to come back.  Oh I wish that were possible as it would be as sweet as honey.

As the eye passes the next front moves in.  The wind grows fierce, sheets of rain and hail pelt all and everything in its way.  Yes, I think the time is near.  Batton down your hatches, have your “preparedness kit” at hand, and be ready for 2009, it will be another year for the history books. While Subprime was the 2008 buzzword are you ready to learn all about Alt-A and Option ARMs?  Or what about oil exporting countries such as Russia who need oil to stay above $40.00 a barrel?  What happens when they sell their foreign debt?  Expect much higher interest rates.

Ahh but you say wait a minute everything will be okay as change is in the air.  The government will stimulate us out of this mess and we can continue on our merry way…  Perhaps, but I don’t concur.  Remember we are a debt laden economy with a very large trade imbalance funded by our exporting friends.  Sure we will “print” money, but I ask you at what cost?  To print money means to make more out of thin air.  To take a bit from you, me, and the rest of dollar holding persons is theft, but unseen theft.  Add that to more debt that we have no way to repay and I see a storm brewing so violent that everyone will be in shock, awe, and amazement at its velocity and ferocity.

Just remember with every crisis there is opportunity.