Global Economics Headlines: Are We Headed for the Abyss?

Ken,

I don't know if you had a chance to research the headlines over the weekend, but these are the ones that stood out to me:

G20 Meeting Was a Disappointment to Markets

G20 Agrees to "Stimulate", Mostly Through Big Government Infrastructure Projects (Bridges, etc.). Deficits Without End!

Government Data Showed that Europe is Now OFFICIALLY in Recession, Second Quarter of Neg Growth

Dems in Congress Determined to Bail Out Auto Sector, Protect Union Jobs

Hong Kong Data Shows Recession Now Official

Japan Government Announces Official Data Validates Recession

European Banks In Worse Shape than American Ones; Slumping Investments in Emerging Markets 6X More Than American Banks' Exposure to Mortage Mess

Citigroup to Lay Off up to 40,000!

Auto Parts Makers Now Want Piece of Bailout

Pres Elect Obama Wants Infrastructure Projects

$1 Trillion U.S. Deficit Possible in 2009

Toyota May Lose AAA Credit Rating

JP Morgan to Lay Off Early 2009

Strange, but the stock futures moved HIGHER, but only temporarily. Probably a bounce from Friday's Sell-Off. Started to move lower 1 hr ago. I expect more weakness during the day session, unless an intervention or good news surprises to the upside. But anything can happen! We may test those recent lows again soon! Morose mood!

I also found an interesting blog. It is a blog dedicated to one of my favorite investors -- Jim Rogers. He is considered to be the global guru on commodities. He even has ETFs named after him. He says the world's largest un-popped bubble is U.S. Government debt! He said when that pops, there will be a global financial collapse and inflation will skyrocket. John Mauldin expressed similar concerns in his weekend newsletter, but is less pessimistic.

It's 3:15 am, and I can't sleep! Ugh! Been awake two hours!

I just heard a very good analyst -- Kirby Daley -- on CNBC suggest that there may be a stock rally before the end of the year. Very sharp guy! He recommended holding cash and selling into it when the rally slumps again. He said it will be a typical bear market (temporary) rally.

You and Cason enjoy the Jazz game tonight. WIN, OK?

Steve