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More right wing propaganda from....Robert Reich????
Ooops,looks like people are coming to grips with what is happening.
Quote:
The so-called "green shoots" of recovery are turning brown in the scorching summer sun. In fact, the whole debate about when and how a recovery will begin is wrongly framed. On one side are the V-shapers who look back at prior recessions and conclude that the faster an economy drops, the faster it gets back on track. And because this economy fell off a cliff late last fall, they expect it to roar to life early next year. Hence the V shape.
Unfortunately, V-shapers are looking back at the wrong recessions. Focus on those that started with the bursting of a giant speculative bubble and you see slow recoveries. The reason is asset values at bottom are so low that investor confidence returns only gradually.
That's where the more sober U-shapers come in. They predict a more gradual recovery, as investors slowly tiptoe back into the market.
Personally, I don't buy into either camp. In a recession this deep, recovery doesn't depend on investors. It depends on consumers who, after all, are 70 percent of the U.S. economy. And this time consumers got really whacked. Until consumers start spending again, you can forget any recovery, V or U shaped.
Problem is, consumers won't start spending until they have money in their pockets and feel reasonably secure. But they don't have the money, and it's hard to see where it will come from. They can't borrow. Their homes are worth a fraction of what they were before, so say goodbye to home equity loans and refinancings. One out of ten home owners is under water -- owing more on their homes than their homes are worth. Unemployment continues to rise, and number of hours at work continues to drop. Those who can are saving. Those who can't are hunkering down, as they must.
Look, man to man, I am being nice here, nice to you, nice to everyone here and I say what the hell are you talking about: Denial?
Since last year, my life has gone up,way up from other people, and my family. The money has been good, but I see it being squeezed by the mess that is happening all around me. I want to see the recovery, the interest rates to go up so savings will make more.
Like I said, this is my calm side. Others have seen me kick off and I tell you, at 27 and getting chest pains because of this is no laughing matter.
Look, man to man, I am being nice here, nice to you, nice to everyone here and I say what the hell are you talking about: Denial?
Since last year, my life has gone up,way up from other people, and my family. The money has been good, but I see it being squeezed by the mess that is happening all around me. I want to see the recovery, the interest rates to go up so savings will make more.
Like I said, this is my calm side. Others have seen me kick off and I tell you, at 27 and getting chest pains because of this is no laughing matter.
Didn't mean to offend and I see you are new here.
I think the reality is that we will not go back to the way it used to be.
I don't know what the future holds but you cannot use debt to grow and you definitely cannot spend your way out of debt with more debt.
Well read the link and see his reasoning...how will the economy recover when 70% of the GDP is consumer spending?
Just like it has every time we have a recession. Maybe all the younger folks on this board have never experienced an economic downturn before, but they have happened, and we've recovered, and consumer spending was a large part of GDP then too.
Some of you deserve the "Chicken Little Award" for the most alarmist.
Hey HappyTexan, I wasn't offended by anything you said and debt? I never had debt in my life, even my outgoings are no more then 15%,
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