I imagine that your 401(k), your house value, and your portfolio are all getting hammered.
Mine are too.
I imagine that you are furious at the government and banks for getting us into this mess.
I am also.
But the question is: what can we do about it?
To Be Able to Guess at Where We're Going, We Have to Understand Where We Are
As we all know, before we can figure out where we're going - let alone what we can do about it - we have to have an accurate picture of where we are now.
That makes sense, right?
Well, everyone knows that the economy is lousy right now. But (you may want to pour yourself a cup of coffee - or a drink - before you finish this letter) what you may or may not know is that we are already in a depression, according to:
- The head of the International Monetary Fund (http://www.bloomberg.com/apps/news?pid=20601087&sid=a6aaWZ8ab8yU&refer=home)
- Merrill Lynch's chief economist for North America (http://base.googlehosted.com/base_media?q=hand-2050195680450736211&size=8)
- The former chief economist at the U.S. International Trade Commission (http://www.upi.com/Business_News/2009/01/11/Expert_calling_it_a_US_depression/UPI-11211231704692/)
- Nobel economist Joseph Stiglitz (http://www.prisonplanet.com/nobel-prize-winning-economist-crisis-as-bad-as-great-depression-or-worse.html)
- Leading investment advisors Ray Dalio (http://online.barrons.com/article/SB123396545910358867.html?mod=djemWR&page=sp) and Doug Casey (http://seekingalpha.com/article/122573-doug-casey-what-to-do-in-the-greater-depression)
- And many other experts
Moreover (I told you you might need a stiff drink), many top experts, including the following people, predict that this may actually be worse than the Great Depression:
- Former Federal Reserve chief Paul Volcker (http://www.cnbc.com/id/29304047)
- Former federal reserve governor Frederic Mishkin (http://www.cnbc.com/id/26850473)
- A Nobel economist (http://www.msnbc.msn.com/id/21134540/vp/29104759#29104759)
- One of British prime minister Gordon Brown's most senior ministers and confidants (http://www.independent.co.uk/news/uk/politics/this-is-the-worst-recession-for-over-100-years-1605367.html)
- PhD economist Marc Faber (http://www.nakedcapitalism.com/2009/01/some-cautionary-observations-from-marc.html)
- Billionaire investor George Soros (http://www.reuters.com/article/newsOne/idUSTRE51K0A920090221?sp=true)
- Former Goldman Sachs Chairman John Whitehead (http://www.reuters.com/article/Finance08/idUSTRE4AB7HT20081112)
- Leading investment advisor and author Nassim Taleb (http://www.bloomberg.com/apps/news?pid=20601087&sid=aWpKlQSOpvvI&refer=home)
- And many others
That Sucks . . . But What Does It Mean?
Okay, time for a stronger cup of coffee or a stronger drink . . .
Investor George Soros not only said that the current crisis was worse than the Depression, he also said that this is more like the break up of the Soviet Union (http://www.reuters.com/article/newsOne/idUSTRE51K0A920090221?sp=true).
What's he talking about?