Bill Bonner takes a look at how financial losses are transformed into economic problems.

How bad will the bailouts get under President Obama?

Barack Obama is leaning towards what the press are calling the "big bang," approach -- a combination of reform, quackery, giveaways, larceny, distortions, meddling, corruption and national bankruptcy.

In a bear market, he who loses least wins.  But even he doesn’t feel like much of a winner – not when cash is outperforming him.

World markets had been recovering from October’s drubbing.  The Morgan Stanley index, which measures capital market performance around the globe, had risen 20% from last month’s lows.  But stocks keep selling off.

Barack Obama may have been elected president.  But it's still not possible to get rich by spending money.  Nor is it possible to save a man from too much debt by giving him more credit.

How bad will the coming recession be?

The headline U.S. inflation rate seems to have peaked out at about 5.5% and is now headed down.

Bill Bonner thinks that unemployment is going to get much worse.

None of the measures taken in the financial crisis so far seems to have done the trick.  The cutbacks continue.  In fact, they are just beginning.