"Those that wish to be wealthy beyond their labor fall into temptation and a tangled web, and many errors and lusts,
foolish and hurtful, that sink them and their kinsmen into ruin and destruction." 1 Timothy 6
This cascading waterfall decline has been remarkably quiet and orderly, with few rallies and significant drops into the closing hour each day.Few realize that one year ago the US equity markets hit their all time highs. They are now down from thirty to forty percent.
This last leg since September 19 has taken from 25 to 30 percent off the major indices and may be remembered as 'the crash' depending on where we form a bottom and how the bounce occurs.
What we are doing is unwinding the reflation that Greenspan created after the Crash of 2000-2003. The efforts to stop the decline are not working because they selective bailouts of the wealthy and a few select banks.
The economy will not recover until broader efforts are undertaken to provide jobs and wage growth to the people, rather than rebuilding the artifice of crony capitalism and the politics of privilege.
The impact of this financial destruction will be felt for the next several years. The worst is yet to come.
