lullaby pit

Nicked from gibsonfeed – Economic “Armageddon” predicted

Understand, this isn’t some shrill liberal pansy screaming that the sky is falling because Bush won. No, this is the chief economist at Morgan Stanley:

Roach sees a 30 percent chance of a slump soon and a 60 percent chance that “we’ll muddle through for a while and delay the eventual armageddon.”

The chance we’ll get through OK: one in 10. Maybe.

In a nutshell, Roach’s argument is that America’s record trade deficit means the dollar will keep falling. To keep foreigners buying T-bills and prevent a resulting rise in inflation, Federal Reserve Chairman Alan Greenspan will be forced to raise interest rates further and faster than he wants.

The result: U.S. consumers, who are in debt up to their eyeballs, will get pounded.

This is not a pretty picture, folks.