OK....The GDP (Gross Domestic Product) dropped 3.8% in the last quarter of 2008.

Let's dissect that.

That includes PRODUCTION, not SALES!

so ALL those cars that AREN't SELLING, are counted.
So ALL those LCD display screens that won't sell, are counted.

Here's the problem:

On Friday's Marketplace, the "analysts' wondered what the actual (bad) numbers are...

Here's my analysis of the numbers:

but first, I'll blow my own horn... (I told my wife I was 3 months ahead of the curve, but looks like about 2 weeks in reality...)
(Today they discussed that the government is now considering to FORCE banks
to limit executive compensation. (and one senator threatened to say NO more compensation then the president earns ($400,000) per year.

For the record, I said HERE that we should limit executive compensation to 20 times what the LOWEST employee (or contractor) for a company makes.

THAT is the answer to this problem...

and EVERYONE out there needs to start calling this, the "SECOND DEPRESSION", yes IN CAPS!!!! it is a CAPITAL problem. SEE HERE for my explanation in detail.

Oh yeah, and the numbers (and cause of the crisis?)
One of the analysts (in this segment) said, this is only the 'lull' after the FIRST storm..I predicted THAT too.
I also predicted that it's like a ice-berg, in that only 25% of the crisis was visible at the time.

That 25% was sub-prime mortgages that were made into 'bonds', by making them "CDO''s *.
I predict that the next wave will be from the 75% of the problems that have occurred by the banks making CONSUMER debt (car and Credit card, and even STUDENT loans) into CDO's.

Once that hits, we will see that the REAL costs of the CDO debacle will be between 7 and 10 TRILLION dollars for the SUB-PRIME mortgage mess, and perhaps 30-70 billion dollars for the rest (remember 75%?) of the CDO mess.

The problem(ed) assets are about: