Lemmings..

Lately I feel like we are all caught in some crazy fire drill where people are histerically trampling each other running from a bomb threat that is really just a stink bomb someone lit off in the boys bathroom. What never needed to be a tragedy suddenly becomes one as people are injured or killed in the crush to run from the perceived threat.

The US economy is suffering from mass hysteria piling on top of the real problems that do exist. We apparently forgot everything we learned in those orderly fire drills freom elementary school. As CFO's and investors tighten their belt they feed the now self fullfilling prophecy that at least in the near future our economy will be in recession. But while it is frustrating to watch this effect ripple through the economy who can blame them?

Want to know where to place some of the blame? Listen to the "This american life" podcasts below

These guys from this american life did a great job of explaining what triggered the current financial avalanch without using tons of market jargon and in an interesting story telling style. They lead you through the story with interviews of people in every step of the financial lending/investing chain.
http://www.thislife.org/radio_episode.aspx?episode=355

Here they explain how the CDS vehicle made things even worse.
http://www.thislife.org/Radio_Episode.aspx?episode=365


And then ther is the fuel thrown on the fire from yesterday if you are bored and want to do some reading.
http://www.federalreserve.gov/monetarypolicy/files/fomcminutes20081029.pdf