Demand Destruction Price Deflation: Earnings up when you Fire Employees. California Lowering Tax Brackets. Social Security no Cost of Living Adjustments.
The Consumer Price Index has shown a year over year decline for the first time since the 1950s. This in itself has added fuel to the growing flame of the menace of deflation. Yet what we are seeing in the psychical world in the form of price declines is directly linked to demand destruction and […]
Federal Reserve Paying Interest on Excess Reserves: Why Lend when you can Earn Interest for Holding on to Funds with Low Risk? The U.S. Treasury and Federal Reserve Walking a Tight Rope.
One tiny announcement made by the Federal Reserve back in October of 2008 is finally making some noise in the dark corners of the internet. What the Federal Reserve announced at the time was that it would begin paying interest on depository institutions’ excess reserve balances. Now why this is important is that it offers […]
Home Equity Loans: $674 Billion in Total Loans. When The Household ATM Goes Out of Order. First, Second, Third, Fourth, and Even Fifth Mortgages.
Home equity was once seen as a cushion for a rainy day. People built up home equity as a means of paying off their home loan and saw it as a source of security. The days of the mortgage burning parties were all but lost in this housing bubble. The roots of the housing bubble […]
34 Million Americans Receiving Food Assistance – 6 Million Increase in One Year: Five Charts Showing the Status of U.S. Employment: Manufacturing Pounded, Participation Rate at Multi-Decade Lows, Part-time Employment at Record Levels, and Less Layoffs with few Hires.
There is something troubling when the theme of recovery is never tied to U.S employment. The American worker is suffering. This has not changed. The solace being offered is that less people are being fired. I suppose the 26 million American workers who are unemployed or underemployed might find some comfort in the jobless recovery […]