Now that a "once-in-a-century credit tsunami" has hit, "those of us who have looked to the self-interest of lending institutions to protect shareholder's equity (myself especially) are in a state of shocked disbelief," says Alan Greenspan.
"We've reached a situation of sheer panic," says Nouriel Roubini in a Bloomberg article. Roubini is a leading economist who predicted the current financial crisis in 2006. "There will be massive dumping of assets" and "hundreds of hedge funds are going to go bust." Roubini continues, "Don't be surprised if policy makers need to close down markets for a week or two in coming days. " He goes further: "Things will get much worse before they get better. I fear the worst is ahead of us." (UPDATE 9AM: It has started happening.)
Brilliant thinker Nassim Nicholas Taleb suggested on PBS's NewsHour that we might be entering the "most difficult period since--not since the Great Depression; since the American Revolution. He continues, "I hope I'm wrong. I wake up every morning--actually, I don't wake up every morning now. I've started to wake up at night the last couple of weeks hoping that I'm wrong, begging to be wrong. I think that we may be experiencing something that is vastly worse than we think it is." (Video here.)
Time for another cup. Make it a strong one.