The World Is In Recession

The US entered recession in November 2007 as the recently revised GDP data showed US growth declining during Q4. Germany's output recently declined. Japan GDP declined from the most recently released data. A large question remains - What happens to Chinese growth in the face of these headwinds? Can Chinese growth "carry" the world away from recession? This remains to be seen. But from where I sit most of the world is now in recession.

Credit

We are in the early stages of a credit maelstrom. The credit storm will continue moving through the world's economies creating difficulties in ways that are unforeseen at the moment. Last week it was some of the auto companies getting rid of auto leases as a means of financing vehicles. This morning on the CNBC news ticker I saw that Wachovia will no longer underwrite certain types of student loans. What will be next?