America's financial system is about to be "marked to market"! It will not be a pretty picture. As more speculation has fed this monster, the more severe will be the repercussions, the steeper the drop.
We have been sold a bill of goods that debt is a cloak of respectability. The more debt we have, the more respectable we are. The more "sophisticated" the models for our financial transactions are, the more "sophisticated" we become as consumers, be it the small local purchaser or the global megabehemoth corporation. As long as we are in debt, and the deeper we go there, the "richer" we become!
Our whole economy is based not on investment but on debt, which is then transmuted into investment according to models that have not taken into consideration a downside to the whole structure. Witness the last financial hearings before Congress several weeks ago where CEOs were queried regarding the housing securities meltdown.
We have elected a government that believes in the free market. Well, folks, we are about to see what the free market has in store for all of us. No one will escape except the exceptionally rich.