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View Full Version : Sinking into the 'great stagnation'



Retread
12-22-2011, 11:36 PM
by MARTIN WOLF of the Financial Times (http://www.theglobeandmail.com/report-on-business/economy/economy-lab/daily-mix/sinking-into-the-great-stagnation/article2278949/)


“America is in disarray”, states Prof. Cowen, “and our economy is failing us.” He points to the slow growth of median wages since the 1970s, the illusions of the 2000s and the absence of “new net job creation in this last decade”. Moreover, “we face a long-run fiscal crisis, driven by the increasing cost of entitlements, our reliance on debt, and our willingness to let matters slide rather than face up to paying the bills”.

Starbuck
12-23-2011, 12:41 AM
I wish I didn't believe that this book contains more truth than not. But I do. I have been saying for some years that I can see where the U.S. may develop into a more European style of living, with smaller houses, smaller cars, more concentrated cities.

It appears to me that all of the above are slowly coming about. In most places you almost can't give away a large house, what with all the expense of upkeep and taxes. And almost no one who owns a 4,000 s/ft home has much equity.

This struck me:
Confronted with painful choices, human beings choose denial. There are people out there - and plenty of them - who are qualified for almost nothing in terms of employment. And still they do nothing but vote in someone who promises them 'a living wage'.

It's very late in the game. Maybe even too late. This last round of borrowing may have done us in.:(

Tecate
12-23-2011, 09:04 AM
The "too big to fail" big six mega-banks all should have gone into receivership after the collapse of 2008 which was (is) 70 times greater than the S&L crisis of the 1980's. Instead, our bought and paid for boot-licking government gave them a blank check in an attempt to bail out that which cannot mathematically ever be bailed out. Your future, your childrens' future, your retirement, your pension fund, etc., are being fed into a black hole created by fraud leveraged practically to infinity.


I always get a kick out of these editorial writers because most of them never go far enough and actually expose the truth. They just nibble around the edges and try to put a smiley face on the fact that you're going to lose everything you've got, whether by outright theft or dollar devaluation.

Starbuck
12-23-2011, 12:03 PM
The "too big to fail" big six mega-banks all should have gone into receivership after the collapse of 2008 which was (is) 70 times greater than the S&L crisis of the 1980's. Instead, our bought and paid for boot-licking government gave them a blank check in an attempt to bail out that which cannot mathematically ever be bailed out. Your future, your childrens' future, your retirement, your pension fund, etc., are being fed into a black hole created by fraud leveraged practically to infinity.


I always get a kick out of these editorial writers because most of them never go far enough and actually expose the truth. They just nibble around the edges and try to put a smiley face on the fact that you're going to lose everything you've got, whether by outright theft or dollar devaluation.

If 'they' are going to label it "too big to fail", then 'they' should have labeled to "too big to exist" in the first place.
Today, I read in the local paper that we are finally going to try our own version of Madoff, Alan Stanford, who absconded with several billion and put many people back to work by losing their retirement funds. Actually, he didn't lose the money as much as he spent it.

Financial editorial writers and columnists go to great lengths mostly to promote their own careers. I do better in the market by not reading them.

As you said, mathematically we're in the "jaw dropping" zone.

Retread
12-23-2011, 10:58 PM
I'm afraid that I've seen the slide go on for too long to believe the country will ever turn around. We, as a nation, have seen our peak and even with the outstnading young folks we currently have out there defending our nation, there are far too many thinking like the occupy crowd; looking for that cradle to grave guvmint care.

Rather than a Eujropean outcome, I think a third world environment is much more likely.

RedGrouse
12-24-2011, 07:53 PM
The "too big to fail" big six mega-banks all should have gone into receivership after the collapse of 2008 which was (is) 70 times greater than the S&L crisis of the 1980's. Instead, our bought and paid for boot-licking government gave them a blank check in an attempt to bail out that which cannot mathematically ever be bailed out. Your future, your childrens' future, your retirement, your pension fund, etc., are being fed into a black hole created by fraud leveraged practically to infinity.


I always get a kick out of these editorial writers because most of them never go far enough and actually expose the truth. They just nibble around the edges and try to put a smiley face on the fact that you're going to lose everything you've got, whether by outright theft or dollar devaluation.

They should of all failed and never gotten any bail outs. It would been better.