My article talked about the “perfect storm” in terms of what the auto-industry was experiencing in the credit markets, but that is probably more apropos of what is going on in the economy as a whole.  Housing is suffering, retail, including auto, is suffering, and jobs are being eliminated at an alarming rate.  Most troubling – these are not short term problems and even with a new president these aren’t going to be resolved over night.

First a little history, the phrase “perfect storm” originated with the 1997 book The Perfect Storm, and was cemented into most minds by the 2000 movie of the same title which starred George Clooney.  The phrase the perfect storm refers to the simultaneous occurence of events which, taken individually, would be far less powerful than the resulting combination of events.  Such occurrences are rare by their very nature, and any slight change in any one event would potentially lessen its overall impact.

Amid increasing turmoil, the financial sectors continue to get battered with ever worsening statistics, facts, and losses.  Even once steadfast companies like Citigroup are seeing lines of of defaulting homeowners looking around for help and their share of the bailout.  In what may be good news for some of these homeowners, Citigroup has announced that they are putting a temporary moratorium on foreclosures for all clients who are willing to work in good faith to restructure and repay their mortgages.

Some experts contend, and I would assume that they are correct, that the 158 year old Citigroup is simply postponing the inevitible if things don’t change in the economy as a whole.  Of course, it will curb the ever increasing number of foreclosures, but until the underlying problems get resolved its impossible to know what the long-term benefits of this halt will be.