How the Mighty Have Fallen...

Price of Nortel stock, per share, at its highest (reflecting a recent reverse split): $1245.00

Price of Nortel stock, per share, after trading was halted today: eight cents

"You think the economy sucks now? Just wait"--heard just now on 680 News

WHAT NEXT? 

I have a subscription to The Economist. As the global economy started to sour, it seemed a good, if pricey investment: I had previously bought the odd copy off the newsstand and always found it an erudite and entertaining read. I thought that perhaps I'd be among those on the cutting edge of the wave of economic collapse.

While I don't regret the subscription one iota--the magazine is chock-full of interesting articles on all manner of subjects, not just the economy--I can't help but notice how unfailingly optimistic its general tone is. Every issue catalogues all the bad things going on, more and more each week, it seems, and then concludes that soon the bottom will be hit and things will improve.

I'm not so sure about that.

"The system was about six hours from failing"

Some Wall Streeters, the ones who aren't killing themselves, have discovered their inner survivalist and are stocking up on freeze-dried foodstuffs, guns, and the like. How they plan to escape Gotham and shed a century or so of technological dependence, of course, remains to be seen. Are their actions paranoia or prudence? That remains to be seen, as well, but...

"In fact [the U.S, U.K, and countries dependent on their economies] should not expect any real return to growth before 2018"

One think tank forecasts a tipping point in March, 2009, as people around the world realize that the crisis is indeed global, systemic, and uncontrollable. It is entirely possible, even likely at this point, that pensions will be nationalized; some may outright collapse. It's hard to see how the United States won't renege on its colossal debt. Social instability is a given as the economic crisis worsens, both locally and globally. 

Obama knows all this, of course. He'll be very careful how he says it out loud, because as of right now there is still a maddeningly pervasive belief that if America just prays hard enough, or something, this economic catastrophe will melt away like a bad dream.  (Pray in one hand and piss in the other and observe which gets wet.) 

What bothers me is that the U.S. government, both current and future, appears to be striving like hell to maintain the status quo. Probably not so much out of ignorance: more out of a failure of imagination. It's simply unimaginable to many in power that the system could collapse, even as we observe it slowly collapsing. It's also unimaginable what might take its place.

It's truly sad to see so many people focussed on economic stimulus. (An article in the London Times actually suggests punishing those who save money and forcing them to spend it...there's your WTF for the day.)

The image that comes to mind is that of a doctor defibrillating a deceased patient. There just ain't no shockin' this thing back to life, people. The era of conspicuous consumption is winding down. Nortel is only the latest of a series of coal-mine canaries.