As I wrote this month's MoodCompass intro, I could only wonder when I might get to write about some good news. It just seems to keep getting worse... Here's the excerpt from the September issue:
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How do we say this… Let’s see… THIS LOOKS REALLY BAD!!! Last month we discussed an event or series of events centered around August 8-11 that could change the geopolitical and/or global economic landscape. The Russia/Georgia conflict certainly qualifies. This month, the globalization experiment continues to be severely challenged as cooperation between nations and even within nations continues to deteriorate. The global economy, already damaged, is likely to be severely crippled by the time this month is over.
However, our primary concern this month is not “the world.” It is one country in particular… the United States of America. For the last few weeks, optimism has been on the rise. There have been calls of bottoms in the stock market, beginning with the zany Jim Cramer of CNBC. Analysts have begun suggesting that it is time to buy stocks again. As of Friday (the 22nd), the stock market is up for the month of August. In a bear market, fading pessimism is not a good sign. It is a clear sign that the next leg down is about to start, and this next one looks particularly severe.
There may be increasing signs that the American consumer is not doing well, or that businesses are in trouble. Anxiety among stock market traders may begin to increase as the stock market does not sell off like “it should” in the face of the seriousness of the global and national indicators. Eventually, the rubber band will snap. This next one should be unlike any stock market decline in recent memory.
It is the aftermath of this, how it changes the face of America that is of primary concern. How will all of our lives be affected as the investments, the life savings of so many are wiped out? How do retired persons or those about to retire who did the “right thing” now face that they have nothing of substance to live on? How do businesses large enough to be publicly owned companies continue to retain workers when their capitalization has been practically erased? What is the effect of such extreme socioeconomic changes just before a presidential election?
This is not good news. There is no apparent silver lining. We have taken on the task of warning of approaching storms. It is time to hunker down. This one will be a doozie.
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(current issue viewable by subscription only; reprinted with permission of A New Story Foundation)
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