No, the world economy is doing fine...it's the US economy that is tanking...The theory of globalization is coming to fruition, the US supported the idea, but now that our company's are struggling, and capital is moving overseas, it's be interesting to see how they address globalization and democracy in the free world, now that the US dominance in the marketplace has eroded...It won't be long before the Euro is viewed as the dominant world currency, hence the comments from Paulson today. The days of the dollar being the globally accepted currency are coming to an end...Cue Ross Perot and his giant sucking sound...
MS and GS will short / put the crap out of it on the way down. They probably spent half the day Friday switching positions.
All this pump and dump tells me is how desperate they are. Bear Stearns is dead, Merrill is shjtting their pants and today Lehman shows us it's facing 40-50% stock dilution in order to raise enough dough to stay alive.
When shjt goes ragged there's not much left to do but throw everyone else under the bus, grab what money you can and then strike a match and burn everything down.