The American dream myth: Income mobility; 4 out of 5 Americans struggle with poverty, joblessness, or go on welfare at some point during their lives; and bottom 80 percent of Americans control 7 percent of total wealth.
There is an odd sort of Greek-like mythology that the American dream is only getting stronger when various pieces of economic data clearly show that this is not the case. The middle class has noticeably shrunk over the past few decades. Income inequality is at levels last seen during the wildly opulent Gilded Age. We […]
The financial feeding of the massively indebted American: Consumer credit owed hits record, permanently high gas prices, and feeding empty promises with food stamp outlays up 600% from 2000.
Americans are now fully engaged, once again, in their consumption ways financed by debt. To continue pretending that the middle class is not shrinking, massive amounts of debt are being pumped into the system once again. Total consumer debt has reached another peak but the reason this has peaked is very troubling. Over the last […]
The uneasiness of Quantitative Easing: How QE is ineffective with helping the broader economy in favor of boosting support for too big to fail banks.
Quantitative Easing outside of economic and financial circles is a mystery to most of the public. In fact, start talking about the Federal Reserve and eyes will glaze over as if you were speaking in tongues. The financial sector counts on the public being ignorant of such things. That is why the failure of QE […]
Arrested development courtesy of student debt: How student debt is putting the lives of many young Americans on hold.
Many young Americans view student debt as a necessary evil in pursuing higher education. The level of student debt now reaches Himalayan levels as many are falling behind on keeping up with payments. A double-edged sword has befallen young Americans. First, the path to middle class jobs no longer runs through a blue collar industry […]
Detroit files for bankruptcy while S&P 500 hits record high: The bifurcation of the American economy and the long decline of the American manufacturing base.
The US is full of economic dichotomies. The DOW hit a peak when food stamp usage peaked. Incomes for the wealthiest are reaching record levels while the median household income has fallen back to levels last seen in the mid-1990s. And today, the once manufacturing powerhouse of Detroit is filing for bankruptcy at the exact […]
Part-time nation: What does it say when a vast portion of our society is now working at part-time jobs? 2013 scorecard: Minimum wage restaurant jobs added: 239,000. Manufacturing jobs added: 13,000.
One of the more troubling pieces of economic data I have seen is that excluding restaurant and bar employment, we are actually down nearly 2 million jobs in the private industry going back to the start of this long drawn out recession. This is probably one of the narrowest recoveries in our nation’s history focused […]
The debt reckoning has arrived: Total debt owed now approaches $60 trillion while Fed wrestles with interest rate confidence game.
Some people may be oblivious to the recent historical interest rate moves being experienced in the bond markets. Many on Wall Street probably assumed that the Fed had an unlimited ability to pull the wool over the eyes of the American public. Yet the reaction with interest rates concludes an interesting chapter in American central […]