From Bill Bonner at the Daily Reckoning:
It’s not the end of the world. That’s just the way the world works.
Economist Irving Fisher described the process in 1933. When people get too far in debt, there typically comes a moment of panic when they rush to sell assets in order to pay it down. They know debt is a killer – especially when there is a danger they may lose their source of revenue. Then, as more and more people – and here we may as well be talking about big financial institutions – dump assets, prices collapse. This causes even more dumping. There’s a “stampeded to liquidity,” said Fisher, as people try to raise cash and get rid of dodgy ‘assets.’
In other words, what is happening is just what you’d expect to happen. After a bubble, comes the crash. After a credit expansion comes a credit contraction. After life comes death.
So relax. It’s all a part of the plan...a part of the way things are supposed to work.