All around the world this Friday, investors are wringing their hands. The papers are full of the cause. More job losses. Slower growth. Bankruptcies. Debt.  There. Don’t you feel better now?

This is no ordinary downturn. After the biggest credit bubble in history, we face a correction on an unimaginable scale. Make no mistake about it: This is a credit-cycle bust that the government cannot stop. The losses are already catastrophic. And the massive unwinding is nowhere near finished yet…

“We have never seen such a foolhardy effort on the part of the world’s governments to prevent a correction,” says Bill Bonner. The market is not being allowed to work as it should. First Wall Street told us we could borrow and spend forever. And now messieurs Bernanke and Paulson tell us they can fix this mess. Bill says all they will succeed in doing is creating the next major monetary crisis.

Could we be about to enter a global depression? Bill Bonner thinks there is a good chance. The Dow is heading to 5,000. The US is falling into recession, and the Fed is making it worse. Businesses are cutting their workforces. Consumers are staying at home. And global trade means this slump in demand will hurt producers all over the world.