Saturday, March 03, 2007

Tuesday's crash was not a Blip, Last week was not a slump, The Second and Greatest Depression is...

Tuesday's crash was not a Blip, Last week was not a slump, The Second and Greatest Depression is right around the corner per experts!
Many of you at kos know that I have been saying since I joined kos that despite what we have been told by Bush that this is a great economy, this was never a great economy. Rather it has routinely been massaged to give the illusion of prosperity.
It is a Bush war economy and as such those that can afford it were able to benefit from the stockmarket. The average American has been slipping steadily under Bush as you know and all the while Bush brags about how great the economy is. This is about to end even for them.
Wenesday I posted that the stockarket was beginning a collapse that was long expected and it was not going to be pretty. There were some who said the 416 point drop on Tuesday was nothing more than a blip and the market would bounce back. As you know , it did slightly, 52 points if I remember correctly and then continued downward for the week.
Stocks slumped Friday, at the end of the worst week on Wall Street in four years, as worries about growth at home and abroad caused investors to stage a mass exodus. Technology and commodity companies were especially hard-hit, but nearly all stocks in the Dow were down by Friday's close. The major gauges have fallen for three of the last four sessions. For the week, the Dow lost 4.2 percent and saw its worst decline on a percentage basis since the end of March 2003.
To me this can at this point hardly be called a slump let alone a recession or the beginning of a Depression. As we all know, we have enjoyed recently unprecedented increases in Stock and home valuess. To me it was shored up artificially with purposeful undeserved rosy pictures painted. I am listening to Bernanke paint the same rosy picture Greenspan did and only for Bush's purposes.
It only makes sense that the unprecedented increases would be ultimately be followed by unprecedented decreases and lultimately losses. There is only one way to avoid that which some analyst's say will happen and that is a continuation of the slide.Last week I posted on the expected 2nd Greatest Depression.
The Second and Greatest Depression is right around the Corner. This is stunning!
The other day as we listened to Bush's lies about wanting to fix Health Care I caught on the news that pretty soon healthcare will consume $1 of every $5 you spend. That is mind boggling in itself. Knowing he does nothing to help the average American or our America is sobering enough. That ass hole constantly lies and covers up all reality!
He brags every friggen day how great his economy is while we are left dumbfounded. People in staggering numbers are losing their homes, ending up on the street, going hungry, unable to receive or afford even basic healthcare, or even satisfy life's basic needs. this is happening in America and I find it overwhelming. Why? In America?
Then I was sent this staggering information. Iposted it Wednesday but in light of reaffirmation of my concerns I thought it was wall worth another read.
The Second Great Depression By Mike Whitney" The US economy is in danger of a recession that will prove unusually long and severe. By any measure it is in far worse shape than in 2001-02 and the unraveling of the housing bubble is clearly at hand. It seems that the continuous buoyancy of the financial markets is again deluding many people about the gravity of the economic situation. 02/21/07 This week’s data on the sagging real estate market leaves no doubt that the housing bubble is quickly crashing to earth and that hard times are on the way.
There’s no doubt now, that Fed chairman Alan Greenspan’s plan to pump zillions of dollars into the system via "low interest rates" has created the biggest monster-bubble of all time and set the stage for a deep economic retrenchment. Greenspan’s inflationary policies were designed to expand the "wealth gap" and create greater economic polarization between the classes. By the time the housing bubble deflates, millions of working class Americans will be left to pay off loans that are considerably higher than the current value of their home. This will inevitably create deeper societal divisions and, very likely, a permanent underclass of mortgage-slaves. A shrewd economist and student of history like Greenspan knew exactly what the consequences of his low interest rates would be. The trap was set to lure in unsuspecting borrowers.
In real terms, the economy is already in recession. The growth numbers are regularly massaged by the Commerce Department to put a smiley face on an under performing economy. Industrial output continues to flag (In January it was down by another .5%) while millions of good paying factory jobs are being air-mailed to China where labor is a mere fraction of the cost in the USA. Also, automobile inventories are up while factory production is in free fall.
Please read the entire report. It is very sobering and the first honest appraisal I have ever seen as to our dire Bush hidden financial future. In closing Mike say's Greenspan has led us sheep-like to the same precipice as the great depression. The economic dilemma we're facing could have been avoided if the expansion of personal credit had been curtailed by prudent monetary policy at the Federal Reserve and if wealth was more evenly distributed as it was in the ‘60's and ‘70's. But that’s not the case; so we're headed for hard times.

James Joiner
Gardner, Ma

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