With three out of five top banks biting the dust, other financial companies being bailed out and much more damage to potentially follow, it seems that the economic booms of the past, such as the one in the 90's, won't be seeing the light of the day again.

The sub-prime fiasco, I think, will pave way to a reduction in consumer spending. If that happens on a large scale, the first casualty will be luxury and semi-luxury goods. Tech companies and Retail giants could face the brunt of the emptier pockets of American taxpayers.

The failure of the economic bailout package will not last long. In my humble opinion, it will eventually go through albeit not without creating more havoc in North American and World Markets. The drama that is prevalent at this time will finally pave way for common sense to prevail. The Paulson Plan is nothing but a temporary cure but it is a 'must' given the velocity with which the financials are self-destructing. 

It would be interesting to see how investors change their strategies to adjust to this prolonged bear marker; the likes of which people tend to see once in decades.

P.S. I do not pretend to be an economist, as my authoritative style above might indicate. But this economic crisis makes me extremely emotional and sometimes angry!

Best,

A.