Worst Case Scenario
Thanks to Karl Denninger, master blogger, political activist, and technical guru for posting this sobering look at things today.
Here's the highlights (or lowlights maybe?)
"Just so you have a short list of what's at stake if Washington DC doesn't change policy here and now (which means before the collapse in equities comes, which could start as soon as today, if the indicators I watch have any validity at all.
All pension funds, private and public, are done. If you are receiving one, you won't be. If you think you will in the future, you won't be.
The FDIC will be unable to cover bank failure obligations.
It really is that bleak folks, and it all goes back to Washington DC being unwilling to lock up the crooks, putting the market in the role it has always played - that of truth-finder, no matter how destructive that process is.
Only immediate action from Washington DC, taking the market's place, can stop this, and as I get ready to hit "send" I see the market rolling over again, now down more than 3% and flashing "crash imminent" warnings."
Remember folks, there is no reason the bottom has to be anywhere around here. The dow went down 90% in the Great Depression. Assuming this is Great Depression II, the dow could fall 90% again. In case you want to know where that leaves us, think Dow 1410. Yeah, let's hope that doesn't happen.