The bailout of the wealthy: stock market sham, income inequality, and crushed consumer sentiment. Peak debt, peak Dow, peak inequality.
In the midst of the stock market reaching record levels the Federal Reserve has increased its balance sheet to well over $3.2 trillion. The Fed continues to be the primary buyer of mortgage backed securities. This strategy has caused a flood of easy money from big banks into residential real estate as funds start chasing [...]
Who’s afraid of a little bit of inflation? How low interest rates hide the real price of housing, college tuition, and cars.
Inflation is like the proverbial story of a frog in hot water. Drop a frog in boiling water, it jumps right out. Drop a frog in regular water but slowly raise the heat, and it will slowly boil into oblivion. Inflation has a subtle way of destroying purchasing power. Unless incomes are rising, which they [...]
The long slog ahead for jobs: We are 9.45 million jobs short of where we should be and are unlikely to reach normal levels of employment before 2019.
Employment is the most important indicator of a healthy economy. The recession has left a deep scar and has set us back into a lost decade. Primarily for this reason many Americans are having a hard time jumping on this recovery that officially will reach a four year anniversary this summer. The long term projections [...]
European economy struggles under debt and staggering unemployment: EU unemployment at record while nations pile into massive levels of debt. Inflation censorship.
The European Union is the largest economy in the world combining the collective buying and selling power of multiple countries. If you’re biggest customer is having troubles, it is expected that the world would be concerned. Not so with the stock market. The EU is currently sitting at a high in respect to their unemployment [...]
An economy of peak food stamp usage, peak Dow, and peak Debt: What does it say about our economy that at the same time the Dow Jones hits a peak, we have the highest percentage of Americans on food stamps?
It is a dichotomy that speaks to the current state of our economy. Food stamp usage has peaked at the very same time that the Dow Jones Industrial Average is setting new highs. Of course, the Dow is setting new nominal highs but still has a way to go to catch up to the eroding [...]
Inflation eats away the new peak in stock market: Dow is down 11 percent since 2000 adjusting for inflation. Looking at the stock market and the impact of inflation.
The Dow has now reached a new peak. The media is prancing up and down like a giddy school girl as if this had a significant impact on the bottom line for most Americans. Don’t let the details out that many companies have increased their bottom line by squeezing wages and cutting worker benefits. Yet [...]
Debt based delusion: Fed spending far outstripping revenues, balance of trade, and business inventories decline.
One clear symbol of our new Gilded Age is that of the peaking DOW while food stamp usage is at a peak as well. Even though the DOW is only a reflection of a handful of companies, the media focuses on this as if it were a barometer of the real economy. It isn’t. Household [...]
The Sequestered Gilded Age: Top 20 percent of households control over 90 percent of all stocks and financial wealth: Bottom 40 percent of all households have an average net worth of -$10,600.
Income inequality is now at levels last seen in the United States during the Gilded Age. This was a time of incredible opulence for the few while the many struggled to get by. There is even a story of a Mrs. Stuyvesant Fish throwing a dinner party to honor her dog that arrived wearing a [...]
New model of retirement, aka working forever. Americans woefully underprepared to face retirement and half of households have zero retirement plan.
Most Americans are incredibly unprepared when it comes to retirement. The goal posts keep shifting. Now for full retirement under Social Security people will need to retire at 67 versus 65. What is rarely discussed is that rising Medicare premiums are being taken out of monthly payments so the amount being received is already shrinking [...]
What European Recovery? Unemployment at record high and debt only keeps reaching more unsustainable levels. Italy’s Debt to GDP crosses 125 percent.
I never understood why so many people bought into the notion that the European Union was recovering. If recovery means that a handful of well-connected bankers are bailed out with financial smoke and mirrors instead of facing reality while placing crushing austerity on the public, then yes, maybe a recovery is what was experienced. As [...]