Reality Comes to Wall Street
The evidence of an impending U.S. recession has been building for months, but most of the Wall Street crowd has been ignoring (or denying) it.
Still, there have been some exceptions. One is Merrill Lynch economist David Rosenberg, who seems unusually attuned to reality for someone on the payroll of a firm that is in the business of selling hopes and dreams.
When the stock market bubble burst in 2000, the collapse that followed wiped out over two-thirds of the value of the Nasdaq Index and decimated the hopes and dreams of millions of Americans. Now, imagine not one, but four such disasters looming on the horizon, all poised to erupt in a massive economic firestorm that will wreak widespread havoc in the months and years to come. The author identifies the most pressing financial risks we face today: First, a burgeoning tower of public and private debt wobbling precariously on a foundation of excess and fraud; second, a multi-trillion-dollar house of cards to which all Americans are exposed but few understand; third, a vast array of largely hidden government promises that will ultimately go unkept; and fourth, a retirement mirage that will leave millions enslaved to the workplace until the day they die.