china’s shanghai composite and u.s. stock markets continue to drop. the question is whether the bubble is here. or not.  if the chinese stock market collapses, that would be devastation.  on the bright side, u.s. would probably have a reduced national debt (somewhat relatively) if they assist china in a bailout.  on the downside, the u.s. would incur more national debt. we too would face the same economic situation and ultimately stare at the face of a national economic depression. this wouldn’t be the great depression.  it would be incredibly worse.

other world economies are teetering on their collapse.  latin america and greece are on the verge of collapse as well. this could lead to a global depression where recovery may be a bit more difficult to leverage unlike the 1930s. manufacturing supported the worldwide economy and assisted in the global economic recovery in the 1930s.  that won’t be the case this time as most manufacturing is based in asia nowadays. u.s. can’t rely too much on manufacturing as it has become a mostly service-based and food product economy.

the u.s. stock markets suffered a technical “glitch” yesterday that caused the markets to close for four hours. fortunately, there were no hackers involved.  that could lead to bigger issues in the future if the vulnerabilities aren’t resolved.

now onto our morning coffee…