Overall a report that confirms that 6 years after the start of the Depression, propped by some $15 trillion in central bank reserve liquidity injections the bulk of which has been used to prop stock markets, there is still no actual improvement in the economy.
We are in a depression. We are not coming out unless the debt that has accumulated is cleared. This will send many a bank into oblivion, as it should, because they made bad, stupid, irresponsible loans. But they pressured the government with Hank Paulson's "tanks in the streets" crap to bail them out. The Federal Reserve which controls and protects the bankers also enables the deficit to continue to climb to shelter the stupid and irresponsible from the consequences.
The trouble we have is there is no way for the banks to reset. They are terrified of the domino-effect of foreclosures, bankruptcies, charge-offs, etc. Thus they are treading water, purchasing Treasuries with money that it was hoped would go into the private sector -- money no one in the private sector wants because real unemployment is high and businesses are not hiring or expanding.
There are islands of prosperity where this is not the case, but that does not help the revenue picture in Washington or the insolvent states like California and Illinois. The overall situation remains grim and will get grimmer before it gets better.
SNAFU.
You know, I'm looking forward to all this change. Yup! Keeping a positive attitude here. Read an article on ZH the other day about how one of the Greek cities is using its own currency, people are trading with one another, feeling pretty good about being able to exchange goods and services without the Government taking a huge bite out of every transaction. It is going to force us to be efficient and innovative. Adversity does that. Also, it will be good to see the leech class doing something productive, like digging ditches, or picking through trash piles. Good, honest work.
ReplyDeleteYou're right. It will be good for them. Things will eventually work back out. We might as well be positive.
ReplyDeleteMy wife said that the government has all the tanks and planes. I said, sure, but what are they going to do? Bomb the corn fields? That will work out well for them. They can eat Soylent Green.