While we wait for world market jitters to calm (whenever that may be). And while we wait to see if the US Congress gets a 3-T stimulus package together (as if that might help. We can all take some minor comfort in knowing that all Recessions (even those called Depressions) are Timely, Temporary, and Targeted:
- Timely: Recessions happen timed to events that suggest that "unbridled enthusiasm" is finally at an end—and confidence is lost.
- Temporary: All things come to an end, even Depressions. Some episodes just take longer to unwind than others.
- Targeted: Aimed to hurt most those who have over-extended themselves in debt or speculative frenzy. Aimed too to finally allow for responsible discussion of effective regulation, although there may be less-than-responsible discussion during initial panic—that hopefully will not get set into irresponsible policy.
Wall Street joins global equity plunge, Kristina Cooke, Reuters, Jan 22: NEW YORK (Reuters) - Stocks slid sharply on Tuesday [at the opening bell], joining a global equity rout on fears of a U.S. recession and pushing the Nasdaq into bear market territoryInvestors dumped equities even after the Federal Reserve cut interest rates by 75 basis points in a surprise intermeeting decision. The move from the U.S. central bank follows two days of sharp losses in Asia and Europe on worries a deteriorating U.S. economy would drag other regions down with it. …The move from the U.S. central bank follows two days of sharp losses in Asia and Europe on worries a deteriorating U.S. economy would drag other regions down with it.
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