Today's employment report, showing that employers cut 533,000 jobs in November, 320,000 in October, and 403,000 in September -- for a total of over 1.2 million over the last three months -- begs the question of whether the meltdown we're experiencing should be called a Depression.
We are falling off a cliff. To put these numbers into some perspective, the November losses alone are the worst in 34 years.
So that's what one dude has to say. Then there's this gem from Andrew Leonard's interview with Nobel Prize winning Paul Krugman:
How bad do you think this [economic meltdown] is going to get?
Awful.
Again, we don't understand anything about this. So.....maybe they're all wrong.
1 comment:
what you are witnessing the the start of something FAR worse than The Great Depression - which, incidentally, have predicted for years.
The US produces nothing. in the 20s, we were still heavy in manufacturing, which is an industry that adds value to an economy. The service industry (90%) of all jobs right now adds nothing. We can't all be each other's butler, someone has to produce something to pay the bills. We haven't produced much in 30 years, instead used credit to put off the bad news and keep out standard of living high. Well, unfortunately, that's going to end.
Even worse, Obama seems intent on throwing gas into the fire by supporting these obscene bailouts and 'stimulus' measures. He can print money to hand out, but the money is meaningless.
Being a politician first and foremost, he is going to do what he can to stabilize house prices - which is a huge mistake. Houses are overvalued for a variety of reasons (email me and I can elaborate) so the only way to keep that nominal price is to cause hyperinflation. That will temporarily appease the public...but it won't improve productivity - which is the only way to create 'wealth.' He digs us into a deeper hole with every dollar he prints and gives to wall street (an industry that not only doesn't add to the economy, but exploits its weaknesses for the financial gain of its members).
There is no one to really blame except consumers who have long lived beyond their means. But its important to oppose the current policies - which is attempting to fix excess spending by using credit to throw money at failing industries.
This is the topic I can go all day on.
http://www.davidangelo.info/article_02.php
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