Going for broke: The multiple lost decades of US household income. Is it possible to have a recovery while the standard of living collapses?
The recent Census data highlights a stark difference between the stock market and what families are facing across the United States. Households are struggling to keep ahead while the standard of living slowly erodes with the juggernaut that is the banking tide. There will be repercussions for what the Fed has done in terms of […]
A road to unsustainable debt: CBO reports that US is on unsustainable budget course as spending exceeds revenues.
A recent CBO report came out with a rather sobering outlook of our governmental spending habits. The word “unsustainable” is probably not something you want uttered in a report about meeting a budget. Yet that has been our recent trajectory when it comes to spending. The massive financial crisis and subsequent bailouts have resulted in […]
Pension disaster looms over the horizon: In 1980 60 percent of Americas participated in a pension program. Today it is less than 10 percent and the amount saved for retirement is startling.
Americans are on the verge of a retirement disaster. As pension plans slowly go extinct Americans are not saving enough for retirement. The figures point to a looming pension and retirement disaster. Retirement for most Americans is largely a mirage. As organizations switched from pensions to 401ks it was expected that most Americans would save […]
Modern day financial repression and disinformation: Financialization of America creates incentives for massive income inequality.
America in the last couple of decades has undergone a massive reformation when it comes to the financial system. The ability to convert everything and anything into a tradable security has been the biggest goal of Wall Street and has captured our entire economy like a starving grizzly bear chowing down on Alaskan salmon. Even […]
United States sets another food stamp record: Households on food stamps at new peak and more Americans live in poverty compared to the entire population of Spain.
The gap between rich and poor in the United States continues to grow in-line with food stamp usage. Many Americans watch in dismay as they view countries like Spain rip its self apart by a massively discontent and unemployed youth movement. Many probably watch thinking that somehow, our problems can never come close to what […]
The day of reckoning for student debt has arrived and the bubble begins to deflate: JP Morgan exits the student debt market. Similar trends occurred with the subprime market in 2007.
The student debt bubble begins its inevitable decline from unparalleled heights. This week too big to fail bank JP Morgan issued a memorandum that it is exiting the student loan business. What is interesting in this move is that it is eerily similar to banking moves made back in 2007 as some banks started to […]
To taper, or not to taper. Not the question if you are the Fed: Austerity intact while Fed balance sheet continues to expand.
The Federal Reserve has hinted at slowing down its Quantitative Easing machinery but that might face some challenges as the stock market experienced one of its worst months in over a year. This is not to say that the Fed should respond to the stock market when it sneezes but it makes it more unlikely […]