Economist -- nice overview

Excellent article -- worth a full read (it's not that long, even!)

last paragraph: In 2008 governments were credible backstops for their banks and the Fed, the central bank at the heart of the crisis, was willing to do everything it could to create confidence. Now the sovereigns are the problem and the ECB’s help is limited and conditional. That is the real horror film.

http://www.economist.com/node/21531467?fsrc=nlw|edh|09-29-11|editors_highlights

The Technical Evidence for a Bear Market Decline

Great Charts here!  Source

What is the technical evidence for a Bull or Bear market? If we keep it simple, the evidence is solidly Bearish.

Robert Reich blog post

Follow the Money: Behind Europe’s Debt Crisis Lurks Another Giant Bailout of Wall Street

TUESDAY, OCTOBER 4, 2011

Today Ben Bernanke added his voice to those who are worried about Europe’s debt crisis.

But why exactly should America be so concerned? Yes, we export to Europe – but those exports aren’t going to dry up. And in any event, they’re tiny compared to the size of the U.S. economy.

If you want the real reason, follow the money. A Greek (or Irish or Spanish or Italian or Portugese) default would have roughly the same effect on our financial system as the implosion of Lehman Brothers in 2008.

Financial chaos.

Normal Deleveraging Recession

from Jason Kelly

This is not news to longtime readers, but it’s worth remembering that we knew from the beginning this recession would drag on because it was not caused by a normal business cycle but by deleveraging after bad debt — with both rapacious banks and stupid borrowers to blame. Morgan Housel provides a good recap of this point:

Prophets Of Doom: 12 Shocking Quotes + 1 I found

12 below, but here's another:  "The markets are focused on the imminent default by Greece. But, this is not the most important issue now. The historic development the markets have not priced in as that Germany is preparing to exit the Euro. The markets are very likely to have to contend with the re-introduction of Deutsche Marks in the near future. This is bound to mean a collapse in the value of the Euro for those countries that will remain in it (devaluation for the rest of Europe). This step may seem unthinkable but, I believe that the German government is telling us in multiple ways that there is no other solution from their point of view."
-- This is from Pippa Malmgren -- smart enough that she worked for the Bush White House (her bio)

From The Economic Collapse Blog (nice title) & reposted by zerohedge

The following are 12 shocking quotes from insiders that are warning about the horrific economic crisis that is almost here....

#1 George Soros: "Financial markets are driving the world towards another Great Depression with incalculable political consequences. The authorities, particularly in Europe, have lost control of the situation."

#2 PIMCO CEO Mohammed El-Erian: "These are all signs of an institutional run on French banks. If it persists, the banks would have no choice but to delever their balance sheets in a very drastic and disorderly fashion. Retail depositors would get edgy and be tempted to follow trading and institutional clients through the exit doors. Europe would thus be thrown into a full-blown banking crisis that aggravates the sovereign debt trap, renders certain another economic recession, and significantly worsens the outlook for the global economy."