For general discussion and debate. Possible talking point: Meltdown.
Japanese stocks were down more than 9 percent Wednesday. China down 8 percent. World markets crumbling. Central banks FINALLY did a coordinated rate cut this morning, but markets are still selling off.
An economist on CNBC yesterday said that stocks are currently discounting a conventional recession that lasts about a year with unemployment going to 7 percent. However, the credit markets are predicting a more serious contraction lasting several years with unemployment going to 8 percent or higher.
Which market is right? How low do we go? How nervous are you getting? Are the panic and hysteria getting overblown, or is the fear justified, and things are skidding out of control?
