I warned of a market correction or worse in a recent post. This will be worse. Here is why. Rising foreclosures in a devasted housing market, obscene and rising unemployment, a developing commercial real estate crisis and a failed monetary policy. Now add in an unmanageable federal deficit and an alarming number of bank failures, hidden rising taxes and this is suppose to spell recovery. The lie is being exposed. The notion that you can shower the world with cheap dollars raining down from the heavens like confetti at a wedding and prevent a depression will not work. The stimulas was like priming an engine but I never heard the engine start. So the question is now what. First, where did the trillions in toxic assets go. Not very far. This is why the banks are failing in a lifeless economy. Our Fed chief said the recession is likely over. He is lying. This is the same guy that said the mortgage crisis was contained. if the economy was in fact recovering he would be raising interest rates from where they are at which is ZERO (0). Next will be a Dollar crises as our currency has lost half it's value in the past 8 years and will now devalue much further. Right now we are fighting deflation (depressionary pressures). Everything meaningful has lost value. Your house, your 401K, your wages. Just look at the value of some of our larget companies like AIG, GE, Citi Bank. Not long ago a Dairy Queen had more value. Wake up. Look what happened to the motor city and our auto industry. This doesn't smell like a recession. Our government has provided us with a hoax. Hear is what I see they created. The current depression like environment will if we are lucky morph into an inflationary Depression thought not possible. It will be man made right hear in the good old USA. Thank Washington. So we end up with severe stagflation or Hyperinflation where we could become the next Argentina. If the economy can't be inflated the country goes essentially bankrupt. Thank China , Japan and a few others for buying our debt and keeping us floating. Right now 45% of every dollar our government spends is borrowed. It is insane. History tells us that the government has 3 choices. Cut spending - They won't. Raise taxes - They will and every tax get passed to us. Inflate the economy - They will try. Why ? Because it allows the government to re-pay debt with cheaper money at your expense. Pray it works.I am sorry for the long post but I wanted to share my thoughts. Many were fooled by the market rally. A market rally does not mean a healthy economy is on the way. Regards Bill ( Disclosure - I am not an economist. I decided after the crash in 1987 to observe and learn market trends so I could invest without outside help. I am long VRAL)