Heres the 12 warning indicators .
- housing recession in US history , would wipe out between $4,000bn and $6,000bn in household wealth
- further losses, beyond the $250bn-$300bn now estimated, for subprime mortgages.
- big losses on unsecured consumer debt: credit cards, auto loans, student loans and so forth.
- downgrading of the monoline insurers, which do not deserve the AAA rating on which their business depends.
- meltdown of the commercial property market
- bankruptcy of a large regional or national bank.
- big losses on reckless leveraged buy-outs
- wave of corporate defaults.
- a meltdown in the "shadow financial system" (hedge funds etc)
- further collapse in stock prices.
- drying-up of liquidity in a range of financial markets, including interbank and money markets
- vicious circle of losses, capital reduction, credit contraction, forced liquidation and fire sales of assets at below fundamental prices
Sounds like a SCARY MOVIE !!