Here is another word I am using too much - collapse. Unfortunately, everything is collapsing; growth, banks, property speculators, and confidence. Everything is indeed falling apart, except inflation. That number is surging northwards.
Here is today's dollop of misery.
The UK needs a plan
You know we are in trouble when politicians start calling for a rescue plan. It will take more than a cut in stamp duty and liberal bankruptcy protection laws to save the UK economy from its day of reckoning. Personally, I think there is nothing that can be done other than sit back and suck it up.
Spain's largest property developer collapses
We covered this story yesterday, but repetition is the mother of learning. There is much instruction to be had from Martinsa-Fadesa. The property developer was unable to secure a €150 million (£119 million) loan from the banks and creditors. These speculators were already holding €5 billion of debt.
Panic is now gripping Spanish financial markets. If Martina-Fadesa could fail, all Spanish property developers could fail. Perhaps, they will and if they do, they will take the Spanish banking system down as well.
£30 billion is wiped off the FTSE
Like everything that goes wrong with the UK financial system, it is all the fault of Americans.
Bernanke sees downside risks
Those desperate interest rate cuts haven't worked; the US economy is still slowing and the financial system is still imploding. In fact, Bernanke's mad dash to cut rates provoked a screaming rise in commodity prices and led to the highest level of producer price inflation since 1981.
So what is next? The interest rate option is closed off. The fiscal stimulus package temporarily kept consumers spending, but the impact is quickly tailing off. Undeterred, there is talk of a second package of tax cuts. Meanwhile, US public sector indebtedness keeps on rising, and the taxpayer is firmly on the hook for a massive bank bailout.
Bernanke is in a hole, and he helped to dig it.
Bush - no bailout
According to Bush, the Treasury's frantic weekend attempts to shore up confidence in the GSE's in "no bailout". Whatever......
Economists say UK economy in trouble
Inflation is soaring (and surging); the economy is slowing; and the financial system is imploding. Businessweek thinks we might be in trouble.
Commercial property down 2 percent in June.
Commercial property values sank by a bigger-than-expected 2 percent in June. The market is down more than 19 percent since it peaked a year ago.
Equitable life - more delays
Here is the FT's take on the crisis:
"Equitable Life policyholders will have to wait at least until the autumn to find out if the government will bow to calls from the parliamentary ombudsman to compensate more than 1m policyholders who lost billions of pounds in the mutual’s crisis. Alistair Darling, chancellor, has ordered lawyers to pore over the ombudsman’s report and is expected to wait until the House of Commons returns from its summer break before giving any view on compensation claims."