Looking Ahead to Q1 of 2009

We’ve all heard the old saying, “It’s always darkest before the morning.” But when exactly can we expect things to lighten up? There is so much distrust and distrust with the stock market in the tank and so many businesses already filing for bankruptcy, or preparing to file, that peering into the darkness, we see the first quarter of 2009. The news appears to be less than promising.

Retailers will still be picking up the wreckage of a disastrous holiday season. Some experts are predicting that we will see the most retail store bankruptcies in 35 years, from small shops to entire malls and from electronics to apparel. Many predict that the retail industry of the future will be streamlined with fewer outlets, brands and even lower profits.

More banks will fail because they are unable to absorb the massive write-offs from commercial loan losses and credit card defaults. This will be system wide throughout the banking industry and more regional banks will collapse. This is despite the fact that banks…

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