Like you, I have been over thinking some of the issues surrounding the credit crunch.

We need to realise that the market is foolishly addicted to hybidised historic cost information. Market values will fall substantially when this years earnings results are tabled.

Why would (or should) the US taxpayer bail out foreign financial insitutions such as RAMs Home Loans? Perhaps there was no altenative - but at what cost?

Clearly there will be a serious US recession - however there is growth in Asian and European demand and the US export position will be enhanced by a seriously devalued dollar.

This is exactly the adjustment the Chinese were looking for all along!