The U.S. economy has contracted 3 times in this recovery
It hasn't in any other since 1981
http://t.co/JuycFJohoZ pic.twitter.com/QiWJ2N9SU8
— Nick Timiraos (@NickTimiraos) May 31, 2015
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The U.S. economy has contracted 3 times in this recovery
It hasn't in any other since 1981
http://t.co/JuycFJohoZ pic.twitter.com/QiWJ2N9SU8
— Nick Timiraos (@NickTimiraos) May 31, 2015
(WSJ link requires subscription)
Contractions are RACIST! and the Patriarchy!
Like Obama gives a rat’s ass.
Insiders are predicting another housing bubble popping real soon.
I hope this changes the media’s perception of what constitutes a recovery.
This isn’t one.
Rush likes to highlight the fact that the Obama regime throws out good numbers only to revise them downward at a later date.
Has anyone seen a summary of the quarterly claims alongside the later revisions?
.2 positive projected versus .7 negative.
Virtually every economic stat whether it be gdp or unemployment is later revised downwards.
The desperation for positive news has increased volatility in equity markets. Every politican no matter the stripe his scared to death. The next down turn will not stop with a housing bubble. Consumer debt plus government debt = disaster! It means a loss of confidence in government on a global scale. Worse than 2008! The difference this time will that current debt levels will not allow massive QE.
The Chinese and Russians are busy trying to create a different world finance which will de-emphasize the USA$. Huge threat to international trade confidence.
When demographics in NA and Europe demanded surplus budgets governments have blown their credit ratings on QE. Canadians take great comfort in Federal debt levels of $600 billion. Yes better than the past. The reality, however, is that total Canadian debt is +/- $2.2 trillion. Fed + Provinces + unfunded government pension liabilities. Governments dwell on GDP growth because all their forecasting require that growth to make their forecast valid. Not happening.
“The U.S. economy has contracted 3 times in this recovery It hasn’t in any other since 1981.”
That’s because government and taxation have finally gotten so massive that there’s no real profit left in the system. AKA, there’s no legal way to make a buck anymore, unless you have Friends in High Places.
No profit, no growth.
The Soviet Union got to the same place through the expedient of simply killing anyone who made a profit. Cuba and N. Korea maintain this noble tradition.
That’s because, to quote His Imperial Highness Barack I, “the big difference . . . was you’ve got me”.
He was talking about how he was going to keep the Democrats from losing congressional seats in 2010, and it wasn’t true, but it’s true in this case.
Equity markets are headed for some kind of correction as investors, in their search for yield, start to get burned in low quality equities when interest rates rise, whenever that is.
Stay in quality large cap dividends of the highest quality. Dollar average into them if you’re concerned about volatility. Unless you’re prepared to live off the yield and not encroach on capital stay out of equities for now.
Equity markets, large caps dividends or anything else that leaves you holding pieces of paper has little value when the economic Titanic slips under the waves. Someday your grandkids may find value in them but even that is doubtful. When it all comes crashing down it will be equivalent to a earthquake that will level everything we took for granted and if you can’t eat it, barter it or ride out the storm in it, it’s worthless. Much like the crash in 1929 you can be a millionaire today and standing in a soup kitchen line tomorrow. From that point it gets worse. By all means continue to invest in quality stocks, just make sure you’ve invested well for the first 4 weeks of a crisis that looks increasingly probable. I doubt if you will get much comfort out of your investment portfolio when you need it the most. Food, barter and bug-out security. Then back to long term investment, just in case by some miracle, there really will be a 7 year economic recovery sometime in the future. The numbers say highly unlikely.
http://www.usdebtclock.org/index.html
I am surprised that all the balls are still in the air. I thought we would be facing a serious economic readjustment before oobama leaves office. we sure as heck will face one after he leaves.
I don’t share your pessimism but agree stocks are for long holds and not for speculation; that is and has always been dangerous. No millionaires won’t be standing in food lines – there is no empirical relationship between the crash of 1929 and now.
BTW if that happens the least of worries will be declining stock values with out big government socialism sucking the life of our of productivity and thus recoveries.