You wouldn’t know it from the frantic jamming in the stock market, but there is a financial crisis in progress. It is not a panic, but could turn into one at any minute.

• The US dollar is in free-fall against the euro, the pound and the Canadian dollar.
• The secondary market for mortgage-backed securities is dead.
• There is fear of huge losses when mortgage-backed securities are traded or valued at their market prices.
• House prices are falling rapidly and sales volumes have been cut in half.
• Forecasts for the fourth quarter (even ECRI) show little or no growth.
• Corporate earnings declined in the third quarter and are likely to continue to fall in the fourth quarter.
• Consumer spending is weakening, albeit only slightly at this point. But credit-card debt is rising fast.
• The prices of oil and other commodities are soaring (in US dollars). Gold is threatening its historic highs.

Be careful out there. I know I’ve said this before, but things keep getting scarier and scarier. We’ve got the faith-based economy and the reality-based economy. Something’s gotta give.