We are not through the worst part of this financial crisis. In fact, odds are good that the spastic gyrations of the stock markets are just the start of what’s to come. For the Americans reading this, keep in mind the linked article when you hear political speeches about taxes… specifically who’s going to raise them and who isn’t. We will all be paying more taxes in the future… the main question is the form those taxes will take.
If we are forced to print more dollars or Treasury bonds, the inflationary affect is more or less the same. I don’t know about you, but I won’t feel all warm & fuzzy if my income taxes don’t rise, but everything I buy costs 25-50% more. Inflation is the hidden tax on everyone… and it’s one that doesn’t have to be approved by Congress.
Read the linked article, and if you don’t understand what LIBOR or Treasury spreads are about, break out thy mad google skills and learn up.