With this long-term instability in the markets, more people are investing their money into bonds that at the very least assures some protection for principle. This year has been a disaster for most investors, and the outlook for the next five to ten years do not look too promising.
In this morning's San Jose Mercury News, over 40,000 "local" home owners are delinquent on their mortgages, and that number will continue to increase - which means less consumer spending. We all know what that means for the GDP.
Hang onto your hats, because the wind is going to blow harder for the next several years...