THE START OF 2008 ALL OVER AGAIN? Wal-Mart Says February Sales “Total Disaster”, Worst Monthly Start Since 2006, European Economic Data Disappointing, Two Billion Unemployed or Given Up Job Search Worldwide
February 15th, 2013
IS THIS THE START OF 2008 ALL OVER AGAIN?
Do you remember 2008? …and what led up to it? Do you especially remember all of the assurances made that “everything would be OK”?
It smells again like 2008 but this time much MUCH worse. Consumer debt levels have barely subsided from those back in 2008. Taxes are higher and now biting which is a definite factor suppressing retail sales. Gasoline prices are higher and unless you own oil stocks this is surely no benefit. Derivatives outstanding are higher than they were yet “banks say” they are less leveraged (how can this be?).
NOTHING has changed since 2008. Many ratios, balance sheets and financial standings are far worse now than entering that year, a crisis now can no longer be jawboned away by “don’t worry, we are the government and won’t let anything bad happen”. This is the classic reverse “Boy who cried wolf”. Credibility of the puppet-masters has been stained and lost, nothing could be worse in today’s monetary system. “Credibility”, trust, CONFIDENCE! was the only thing that held the system together during the dark days of 2008-09, and it’s waning fast. “Confidence” is also the key factor of “value” behind your currency…no matter where you live or who your central bank is.
Wal-Mart Stock Drops After It Says February Sales “Total Disaster”, Worst Monthly Start Since 2006