Central Banks are Panicking....

...and have cut interest rates almost in every part of the world. In US, Canada, EU, BOE, China (and every other Banana Republic) has cut interest rates by half a point. Too bad Japan can't join the party. The ammunition of interest rate cuts is now seriously depleted, at least in the US. The big question is-what if the markets shrug this off as it becomes aware of the enemy. Sure you could get a dead cat bounce, but it doesn't change anything fundamentally. Consumers that can't buy any more houses (except in Alberta perhaps), banks that don't trust each others and an enemy that is as cold as the Hannibal.

"A Depression doesn't run hot and fierce like some crazed meth burner. A Depression is methodical, purposeful, patient. It will build a shelter out of tree branches and newspaper, light a small, well-contained campfire and wait you out, brother. While you feed on the empty calories of denial and popcorn, it will quietly gather shards of broken dreams and fashion them into a terrible weapon of blunt force reality."

Meanwhile, let's enjoy the last few days of easy credit flow in Canada before the faucet dries up.