We may be days away from an international credit incident originating outside of the United States. Foreign nations, banks, and businesses have "levered up", or taken more risk, than we have. They too have chosen to lie.
This will hammer the stockmarket:
You have already seen nearly half of your money disappear.
You could see another half disappear - within days.
This is an implication of the graph I did on Sunday (see below), looking at the Dow adjusted for CPI inflation since 1928. A return to 4,500 points would seem to be reversion to the long-term norm - but to have it happen all at once, from its peak last October, is a scary prospect.
Tyler concurs, with respect to the UK economy, because of our dependence on income from financial services and associated services:
"Brown's boom was built on a group of industries that are now facing an Almighty bust..."