The Depression Is Alive And Well

Discussion in 'Economy' started by Neubarth, Feb 28, 2010.

  1. Neubarth

    Neubarth At the Ballpark July 30th

    Nov 8, 2008
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    The Depression Is Alive And Well

    The Coming Economic Depression: The Depression Is Alive And Well

    The mainstream economics profession is guilty of dereliction of duty. They should be telling people that this ‘recovery’ is a scam. They should be warning investors that the markets could fall apart any day. They should be buying gold and selling US Treasuries…and explaining to the politicians that you can’t buy your way out of a depression with phony dollars squandered on wasteful projects!

    Instead, the dopes are patting each other on the back…praising themselves for saving the planet from destruction. But what really has gone on? And what’s going on now?

    First, there is a real economic phenomenon going on – the depression. It’s alive and well…and doing just fine. Households are de-leveraging. Businesses are building up cash. People are losing their jobs. Savings rates are edging up. Almost everything is happening as it should.

    Depressions are times of falling prices. Markets are always discovering what things are worth. In a depression, they find that assets – stocks and real estate primarily – are not worth nearly as much as people thought.

    Prices are vulnerable to sharp, unannounced drops until they finally get down to real depression levels. Since that hasn’t quite happened yet…we figure it’s still to come.
    On the employment front, this depression has put more than 6 million people out of work. And every month, more people join the unemployment ranks.

    So far, so good. The US economy didn’t need so many marble countertop installers and so many mortgage refinancers. (If only something could be done to get rid of lobbyists!)
    But the worst thing about a depression is that it holds jobless people prisoner for so long. Many of them will become lifers…they’ll never work again

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