Welcome to "The Double-Dip" Economy

[uscitizen]

Actually pretty much for the GDP to go up right now prices must rise.
It is pretty much the only way once the market is saturated, which we currently are.

 

[KissMy]

Scarcity of jobs puts more at risk of foreclosure

One in 10 American households with a mortgage is at risk of losing its home, and the foreclosure crisis could worsen if jobs remain scarce.

 

[william the wie]

Actually pretty much for the GDP to go up right now prices must rise.
It is pretty much the only way once the market is saturated, which we currently are.

2nd quarter GDP growth is expected to be revised downward to 1-1.5%, the CPI is showing signs of deflation and happy numbers are being printed by the trouble spots like PIIGS. Methinks we are SOL.

 

[iamwhatiseem]

Actually pretty much for the GDP to go up right now prices must rise.
It is pretty much the only way once the market is saturated, which we currently are.

2nd quarter GDP growth is expected to be revised downward to 1-1.5%, the CPI is showing signs of deflation and happy numbers are being printed by the trouble spots like PIIGS. Methinks we are SOL.

It's scary.
We are in the middle of a 5 year strategic plan...fuck me.
We have all agreed to assume that things will not be much better for the next 3 years at least, with a chance of it actually worsening.
The biggest problem is capital expenditures. With dramatic depressed margins, it is impossible to reinvest. And at that point - it is a game of who dies first.

 

[uscitizen]

Actually pretty much for the GDP to go up right now prices must rise.
It is pretty much the only way once the market is saturated, which we currently are.

2nd quarter GDP growth is expected to be revised downward to 1-1.5%, the CPI is showing signs of deflation and happy numbers are being printed by the trouble spots like PIIGS. Methinks we are SOL.

Yep and the govt pretty much used up it's bump up the economy options before this hit.
Debt maxed out, Interest rates already bottomed out.

Might as well drop your drawers and slide on the ice.

 

[loosecannon]

Actually pretty much for the GDP to go up right now prices must rise.
It is pretty much the only way once the market is saturated, which we currently are.

2nd quarter GDP growth is expected to be revised downward to 1-1.5%, the CPI is showing signs of deflation and happy numbers are being printed by the trouble spots like PIIGS. Methinks we are SOL.

Deflation is barking but not biting. WHY!?!?

Japan is following a typical deflationary trap pattern with no relief at all despite massive and decades long monetary easing because their lending isn't confined to their own.

The US and the EU are fully primed to enter the same abyss but it just isn't happening and I can't really figure out why.

Dollar hegemony, reserve currency hegemony, commodity currency hegemony, what ever. It must be working.

Econ models that work on national scales go haywire when applied to global exposure. Just ask Japan.

btw isn't Japanese monetary policy the very definition of insanity? Doing the same thing ad nauseum and expecting different results.....

 

[uscitizen]

btw isn't Japanese monetary policy the very definition of insanity? Doing the same thing ad nauseum and expecting different results.....
//

Umm pretty much what we have been doing.

 

[loosecannon]

btw isn't Japanese monetary policy the very definition of insanity? Doing the same thing ad nauseum and expecting different results.....
//

Umm pretty much what we have been doing.

sort of.

our Chicago school monetarists decided that we could cure recessions without any painful corrections. Enter Greenspan stage right.

So they did and it worked for almost 20 years. But there was a catch, it didn't really work. it just created larger problems to be realized in the future.

Japan has followed the monetarist' prescription to a letter for 20 years and so far has never been able to escape a deflationary trap.

But they keep trying

 

[Procrustes Stretched]

With the poor job numbers, everyone has done...

we are not in a double dip yet.

from today's Krugman piece...

Will the economy actually enter a double dip, with G.D.P. shrinking? Who cares? If unemployment rises for the rest of this year, which seems likely, it won’t matter whether the G.D.P. numbers are slightly positive or slightly negative............Yet policy makers are in denial.

too bad denial wasn't your only issue with being able to make a credible thread.

 

[iamwhatiseem]

With the poor job numbers, everyone has done...

we are not in a double dip yet.

from today's Krugman piece...

Will the economy actually enter a double dip, with G.D.P. shrinking? Who cares? If unemployment rises for the rest of this year, which seems likely, it won’t matter whether the G.D.P. numbers are slightly positive or slightly negative............Yet policy makers are in denial.

too bad denial wasn't your only issue with being able to make a credible thread.

Paul Krugman???
Pheh...

 

[uscitizen]

Krugman did see this mess coming before most other "experts" did.
But even he did not see it coming nearly early enough.

 

[KissMy]

Krugman did see this mess coming before most other "experts" did.
But even he did not see it coming nearly early enough.

Oh Please, Nouriel Roubini beat Krugman to the punch by 2 years. Krugman jumped on the bandwagon as things were coming apart to push for a Marxist agenda. That is his motivation behind his latest call for stimulus. Perpetual propping up of bubbles & government handouts has come to the end of the line. It is time that asset prices return to sustainable levels or this country will loose its credit rating & currency value.

 

[Procrustes Stretched]

Krugman did see this mess coming before most other "experts" did.
But even he did not see it coming nearly early enough.

 

[loosecannon]

Krugman did see this mess coming before most other "experts" did.
But even he did not see it coming nearly early enough.

Oh Please, Nouriel Roubini beat Krugman to the punch by 2 years. Krugman jumped on the bandwagon as things were coming apart

Exactly. Krugman was among the "shocked'.

But on the topic:

The language coming out of Jackson Hole is THE most grim language i have heard the policy wonks use since the fall of 08.

I think it is only fair to assume that IF the Fed had more policy bullets to use they would be using them. Instead they are doing as nothing as possible, and probably in complete SMOA mode.

They posture good and hard about how serious they will be if/when it comes time to counter deflation......

As if anybody really cared. What people care about is full employment. Not insuring that banking spreads are realized to the third predicted decimal.

 

[uscitizen]

And now the American dream is having a job?

 

[loosecannon]

and health insurance

 

[2Parties]

Krugman is a complete tool. He knows he wouldn't have his high-paying gig and arrogant know-it-all followers if he told the truth.

 

[uscitizen]

and health insurance

Yeah at one time jobs came with health insurance, not much anymore though.
Retirement even came with health insurance.

Not now mostly though unless you worked for the gummit.

 

[topspin]

spending up in July, wait but chicken little said!!

 

[KissMy]

spending up in July, wait but chicken little said!!

The National Debt took an even bigger jump pointing to increased government spending. Private sector spending has been revised down.