Does anybody have the paddle?

By Capt. Fogg

No sir, the economy is healthy, "financial markets are strong and solid," and Bush is optimistic. I'm glad the US markets are closed today, because the rest of the world is taking Bush's words to mean the end is nigh. Stocks plunged in Germany, Hong Kong, India and Brazil today and the European Dow Jones Stoxx 600 Index fell the most since Sept. 11, 2001. Commodities are falling on the perception that a recession will reduce demand.

The slide began last week while President Bush was unveiling his inchoate plan to fix everything with a small handout to the peasantry and a cheerful dose of oblivious optimism. The worst week for US stocks in five years followed apace. The rest of the world has caught on that their US investments are only as sound as the withering Dollar and nothing Bush is capable of doing will do anything to postpone or lessen the coming crisis. The Bank of China alone may have to write down 17.5 billion yuan ($2.4 billion) for the fourth quarter of 2007, and another $2.4 billion this year because of the mortgage crisis, says Bloomberg today and the rest of the world seems to be just as far up the creek.

"It's the worst I've ever seen,''

said Johan Stein, who helps manage the equivalent of about $14 billion at Nordea Asset Management in Stockholm.

"The financial system is in terrible shape, and no one knows where this will end.''

No one knows when either but my guess is that it won't end soon or nicely, nor will I be buying that new boat this year.

"We're confident that the global economy will continue to grow, and that the U.S. economy will return to stronger growth,''

said White House spokesman Tony Fratto today. If there's anything that typifies the Bush Bunch's reliance on belief rather than competence to change reality, he just expressed it.

(Cross-posted from Human Voices.)