Monday, October 27, 2008

What Went Wrong

Why things currently seem so bleak:
- Overleveraging (subprime mortgages, credit-default swaps, hedge funds, low interest rates)
- Lack of oversight in credit markets
- Commodity bubbles (oil, corn, natural gas, gold)
- Interlocking world credit markets
- Slowdown in Chinese infrastructure spending after the olympics
- Lack of fiscal discipline in government spending
- Competition for hegemony (Russia, Venezuela, Iran, North Korea, Syria, China)
- Decline in statesmanship among U.S. politicians
- U.S. Election (Democrats seeking advantage by talking down the economy)
- U.S. Elections (growing fear about the consequences of an Democrat sweep)
- Decline of objective media reporting

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