Britannia Radio

all Street Frozen by Fear of Prolonged Recession; Main Street, by the Threat of Mass Pauperization

Dateline USA....

During the Great Depression preceding the passage of the Social Security Act, so-called soup kitchens provided the only meals some unemployed Americans had. The soup kitchen seen above was sponsored by the Chicago gangster Al Capone.

Is this America's future? Will Wall Street come back? Will Main Street survive? Except for preventing another mega-attack on a US city, nothing is more important than the economy. The nation needs jobs ... and affordable energy. 

Meanwhile, this reporter is hoarding cash, stocking up on canned foods and ammunition, and investing in gold.


CNNMoney reports:

Stocks slumped Monday, as ongoing recession fears overshadowed any relief about China's $586 billion stimulus plan and the government's revamping of its deal with AIG.

The Dow Jones industrial average (INDU) lost 0.8%, according to early tallies. The Standard & Poor's 500 (SPX) index lost 1.2% and the Nasdaq composite (COMP) shed 1.9%.

All three major gauges had initially risen in the morning, before giving up those gains in the early afternoon.

Monday brought a heavy spate of corporate news, including AIG's huge restructuring, Circuit City's bankruptcy and more weakness for the automakers.

"When the top companies are giving the kind of guidance they're giving and announcing layoffs, that tells you we are looking at at least a few more quarters of this recession," said John Wilson, chief technical strategist at Morgan Keegan.

In global news, China announced a $586 billion stimulus package, aimed at tempering the impact of the global financial crisis.

"I think right now the market is grappling with the length and the duration of the recession," said Wilson.