2009 is going to bring a lot of grim economic news.

It must, because so many adverse factors are already with us and need time to be resolved. Let us look at some of the basic facts:

1. most world shipping is currently idle;
2. the banking system is still not functioning;
3. that there is a crisis in trust and confidence;
4. that manufacturing output is pre-programmed to decline due to 50% of
our steel plants being closed;
5. that there are now 6.7% unemployed and that number expected to grow to
at least 10%;
6. that the housing market and construction have sustained losses which
exceed 40%; and,
7. that the stock market performance is dismal with average losses in
excess of 50%.

The only bright spot is that the government is still there and doing what it does best, SPEND and raise indebtedness. However, when one thinks about the role of government, one is forced to ask this basic question: Is it possible that the government can cure the problems above by throwing trillions of dollars at them in the hope that that will be the medicine? I think that the answer is generally no and that we are wasting our money and limiting our future options.

Instead of reporting bad news why don’t all financial websites and newschannels talk about solutions. Oh yeah that’s not news.

Related Posts:

• Let’s try to put things in perspective here, using the NASDAQ as an example:
• Bernanke 2005 vs 2009: “There’s No Housing Bubble to Go Bust”
• Remember when a $million was a lot of money?
• IMPORTANT: Goldman should be removed from being a commercial bank immediately.
• It seems that Trillions already wasted are just a small part of the real problem.

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