We are in an Economic Depression equal to that of the 30s.
By Daniel at 23 November, 2009, 1:59 am
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Anyone making the above statement is laughed at, because you can even find elderly who lived through it and they will tell you this is nothing like what they experienced. You have the Central Bank and the Treasury to thank and blame.
Why aren’t companies going bankrupt and liquidating at distressed prices?
We are and have been bailing selected Non-Depository institutions since Bear Stearns in March of 2008
Why isn’t the Money Supply contracting as debts are paid off?
Because the Central Bank is expanding it.
Why aren’t prices falling?
Central Bank has been placing real and psychological inflationary pressures across the board.
Zero Interest, Expanding Money Supply, Quantitative Easing, De-valuing the currency, right down the line, playing it by the book.
Why aren’t Company Book Values and Profits Falling through the floor?
Cost Cutting, De-Valuing the Basis, and legal creative accounting measures.
Great, and now for things that we couldn’t prevent:
Economic Output?
It has been falling despite 2 Trillion in Fiscal Policy
World Trade?
It has been falling despite coordinated efforts by the G20
Employment?
Private Sector is cutting way faster than Government can create,
extending unemployment, benefit is all you are going to get on this one.
Pessimism and Loss of Confidence?
We have 500 Channels of junk, and if you are not addicted your neighbors are.
Hoarding of Money?
We have turned both Treasuries, and Dollars into toxic assets, Makes zero sense to hoard with negative rates.
We have done all we can. From here on out is going to depend more and more on you.
- Johnny
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