The Tel Aviv market gives a good indication of what it looks like – and here’s the really bad news: Israel’s economy is healthy.
Of course, by the time the markets open tomorrow Bernanke and the boys might have figured out some way to finesse around the downgrade and the spreading crisis in the Eurozone. I honestly don’t know what will happen tomorrow – but things are looking really dicey both in the short and long term.
We’ve got one heck of a mess and it won’t be easy to get out of…and we need a government which recognizes the mess (no more happy talk about how things are moving in the right direction when they’re not) and has the guts to do what is right. We need to massively reduce spending, reform taxes and entitlements and free up the wealth-creating capacity of the American economy. This will infuriate all those special interests who are still living off the carcass of Big Government, but it has to be done.