The Economy.. will hi end audio mfgs lower prices?

" the system will start to clean out all the weak businesses"

Unfortunately perhaps not until after the execs are done funneling off all the bailout money being handed to them.

Don't get caught up in the fear that the press is spreading. This country had 3 and 1/2 millionaires in 2006 and this country drives 40% of the global GNP.

Bongofury, don't you mean "3.5 Million Millionaires"?

Yes, that is 3 and 1/2 million out of 200 million Americans. Next to Japan, we have the greatest luxury marketplace in the world.

That is a lot of rich folk.

PS: This comes from a company called IXI that tracks 9 trillion dollars in investible assets.

Who gives a rat's @#$ that the big companies are laying off. That has been a constant for 20 years. The real job growth engine is small to mid-tier businesses, entrepreneurial in spirit. I personally am not waiting around for GM to create me a job here in California.

Were in a primary bear market...for you young guys...the last one was 1970-74...the Dow bottomed at 574! Kinda hard to beleive. Parabolic bubbles and echo bubbles always retrace about 80 pct. So real estate prices will decline 50 pct....Now with possibly trillions of debt dirivitives tied to housing...and wall street and the politicians trying to resurrect this bubble....do you think the Dow will hold or go up? Your'e right if you guessed no....it's like raising the dead....and I don't think the 2nd coming is here yet.

Eventually the the Dow will hit below 4500 and maybe lower...if the financial system cannot clear....which the politicians and the bankers think will be too painful (for them).....so this thing will drag on.....the lost decade...it sure is shaping up that way...

but I hope...the people in power swallow hard and take their medicine....I can only hope.

I'm not sure you need to be a trained economist to look around and see many examples of 1) people who used to be able to afford $10K pre-amps who no longer can, and 2) people who still could afford $10K pre-amps, but are choosing not to do so. If you can see a number of examples by just looking around, and I think we probably all can, then it only stands to reason that it's going to have an effect.

And, assuming that this is prolonged, and only beginning, the effects are going to compound. Strange times.