It's no over yet

Don't tell me everything is okay...

That's the problem with most of the people, they only see what's happening now, without thinking about what will happen next. Looking at things from the surface wouldn't help people dodge the crisis attack, that will just make them the victim of crisis.

I've been asking others how are people in US, whether they are feeling the recession and concern about the job security, they always say so far they don't have any impact from the financial crisis and not concern about being laid off...yeah, tell me about it..no companies are going to tell their employees that they are in deep trouble, they are not making money and asking them to look for another job. They all say they are performing well and financially sound and liquidity is not a problem. But looking at the indicators, if you found ourselves counting fingers most of the time, browsing internet from the time you walk into the office, workload suddenly disappearing, unless you are waiting for the severance package you should know that ultimately companies are going to cut staff to salvage the bottom line.

I always wonder the productivity of the US firms. They say US is the most productive nation but when I look at people working in the silicon valley they don't really need to work long hours nor produce that much output per staff. I wouldn't be surprised when firms starting to go leaner in terms of labor force.

Reid said on Wednesday that "one of the individuals in the caucus today talked about a major insurance company -- a major insurance company -- one with a name that everyone knows that's on the verge of going bankrupt." Who is it going to be? Allstate, Hartford, Metlife, XL.... we are setting ourselves up for another turbulence.

As we expect there will be more hedge funds failing. No banks are willing to lend now, liquidity got dried up, the process of deleveraging is sending asset prices to go down further. We are heading towards a perfect storm as we move along with earnings announcements....