This is Recession 2008 Rearing its ugly head

Stock Markets around the world tumbled Monday on fears of a U.S. recession, as Wall Street was off for Martin Luther King Jr. day.

In response to the shocking fall in world markets, the Fed held an emergency telephone conference Monday night, deciding to cut two key interest rates - the fed funds and the discount rate- to quell the brewing panic.

But the band-aid could not cover the bullet wound.

Early this morning the Dow Jones Industrial plummeted 500 points - as investors scrambled to join the world-wide sell-off. Now the Dow has rebounded from its morning lows but still is suffering triple digit losses.

This is recession 2008, the result of subprime, housing bubble and outsourcing rearing its ugly head. This is the mess we created through financial schemes that threaten to foreclose millions and possibly drag the entire world into a recession.

We have become a nation in debt- from personal savings rates that hit a post Great Depression low of negative .5% in 2005 to a growing national deficit propped up by foreign nations. At the same time, our manufacturing base has been decimated and rendered unable to compete in the world, closing down factories and putting American’s into lower paying service jobs with poorer benefits. Still more, Americans were lured by teaser mortgage rates to buy the unaffordable, and deceived by skyrocketing housing values to believe they were worth more than they actually were.

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