There is no more question that the economy is once again slowing and may be getting worse. I believe the jobs report was the tipping point, and now there will be an accelerating downward trend as the fears over Europe, Iran, the fiscal cliff and all of the other issue are confirmed to be having a negative effect. This will lead to even more uncertainty and even lower jobs numbers going forward until next year. We may be in a situation which feeds on itself and just becomes a real no jobs growth situation. There is nothing at all on the horizon that will turn this around and everything that could even accelerate the slow down. We are in stall speed.

The Fed cannot really change things for the better no matter what they do. Rates are the lowest in American history. Liquidity is likely the highest it has ever been. The banks are very strong now, and have plenty of capital and liquidity to lend if anyone would borrow it, or if they lowered their underwriting standards which is not going to happen. There is enormous equity capital available and plenty of distressed debt funding to be had. In fact there is at the moment more funding than deals.

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