Saturday, April 18, 2009
is sinking the banks and the banks are sinking the rest of the economy. Two more bank failures this Friday and articles like this explain the insane tactics of banks to buy more time and wait for more bailout money.
Real estate will continue to plunge for at least 2 more years and will drag many more banks into failure, which in turn will drag the economy deeper into the current depression.
Such a spiraling cycle of debt deflation takes more than 2 years to complete. The stock market will respond accordingly. Deflation is picking up steam.