I have been following the news reports regarding the hurricanes this year (the above shot is hurricane Ike as it makes landfall in TX). At the same time I have been following the financial market reports and I see a distinct parallel. We have been in a season of "economic storms" for over a year now. It seems that before we can even dig out from one "storm" another is upon us.
The collapse of the housing market was simply the first blow. Since then we have witnessed energy prices sky rocketing, the dollar plummeting, US companies being bought out by overseas investors, and airlines on the verge of complete failure.
This morning we find 2 of our largest brokerage houses disappearing. Lehman Brothers will soon join Enron in the annals of spectacular failures and Merrill Lynch has sought refuge under the umbrella of BofA. Add to this the nations largest insurer, AIG, teetering on the brik of bankruptcy.
The world is changing.
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