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["Don Bowen" <don.bowen AT earthlink.net>]

There are several indications that the worldwide economy is falling off a
cliff much faster than anyone anticipated, you could say that the music is
going faster than they can dance to.

 

The previously mentioned Baltic Dry Freight Index is just one indication.
This is an index of the cost to move freight by sea and the amount of cargo
being moved.  Just one of many things to watch.  The so called Capesize
ships are the very largest cargo shops.  They get their name because they
cannot use the Panama Canal which is limited to a size called Panamax.  Many
are lying idle with no cargos because of the fall in Letters of Credit and
the worldwide fall in trade.  Several shipping companies are expecting to
idle as much as 20% of the fleet.  

 

A very bad sign for the US is the fall in China's economy.  China recalled
its representative to a Peruvian conference before the conference started
because of economic problems at home.  They are looking at an almost $600B
stimulus package for themselves.  Where this is a problem for us is our own
$700B bailout and the expected several hundred billion dollar stimulus
package that is being talked about.  Where will the money come from with
everyone else spending billions on their own bailouts and stimuli?  

 

This begs the question:  How do you solve a credit crisis on credit?

 

Don Bowen  KI6DIU

http://www.braingarage.com/Dons/Travels/journal/Journal.html