It's only just begun…

 

money money money money money money money money...

 

Recession Worst in Three Decades – Bloomberg.

 

The Economy. The downturn we’re seeing right now is likely to be only the beginning of what could well be a multi-year depression. People are losing jobs by the millions (time to go into business for themselves?) and the economy as a whole is predicted to shrink by almost 2% this year alone.

The economists are shrieking that is the worst economic downturn that we’ve seen since the mid-1970s, and it may go further and exceed that. Let’s hope we don’t have another Great Depression on our hands.

And it’s not just the USA that’s feeling the pinch. This downturn is global.

The economic stimulus bill has passed (even in the Senate, though by only one vote) and is now in effect, and that may help a little, but I bet it won’t do nearly all of what it’s supposed to do. The lack of jobs pinch the consumers’ wallets and thus the hoped-for spending bump is not likely to happen.

We’ll come through this crisis, but recovery will take time and recovery will be slow and painful. It will be the small businesses that will get us through, though; the day of the corporate behemoth being economic salvation has passed. Small businesses are blossoming as corporate America lays off more and more workers who decide that they’ve had enough of getting laid off and start their own businesses.

A word of caution to you newly laid off entrepreneurs, though: You need good legal and accounting advice. Recognize before you start that your business will start out as a money pit. Your income will vary wildly from month to month. You will struggle and sweat, your books will bleed red ink, and you will wonder why on earth you ever did this to yourself. You may, in fact, go under. Or you may succeed beyond the dreams of avarice.

So here’s to the economic downturn; may it be a well-disguised upturn.

The rise and almost fall of America's banks – Yahoo News

The rise and almost fall of America’s banks – Yahoo News.

This is scary.

The lifeblood of the economy is businesses borrowing money. But banks are not lending money any longer, to anyone. They are holding onto money with fists tighter than a python’s hug.

Thus, the economy slows and grinds to a halt. Jobs are lost by the boatload. Homes are foreclosed on. Cars are repossessed. Taxes rise. Wealth goes rapidly down the tubes.

So how do we get out of this mess?

Not every business can do this with my solution because other businesses have more capital equipment needs than does a solo lawyer. I have a bunch of business cards, an old laptop, a workhorse printer, a fax machine, a cellphone, a PDA and a few file cabinets and bookcases. I’m set. Those who need more technology are in trouble.

The economy may work in cycles, but I don’t think I like this cycle. No, I don’t like this cycle one little bit. Maybe I’ll ramp up a personal bankruptcy practice.