Bread, butter, and food stamp economy: Is the US developing a permanent under-class of citizens economically?
The American economy has developed a deep disconnect between its financial markets and the working and middle class. The stock market has soared by 138 percent from the low reached in 2009. Yet very little of this has trickled down to the majority of Americans. In fact, most Americans actually saw little to negative growth […]
Inflation eats away the new peak in stock market: Dow is down 11 percent since 2000 adjusting for inflation. Looking at the stock market and the impact of inflation.
The Dow has now reached a new peak. The media is prancing up and down like a giddy school girl as if this had a significant impact on the bottom line for most Americans. Don’t let the details out that many companies have increased their bottom line by squeezing wages and cutting worker benefits. Yet […]
The day the credit markets awake from a slumber – $1 trillion in consumer debt currently delinquent. Student debt continues to grow adding fuel to the higher education bubble.
With much of the attention being diverted to the cascading financial crisis in Europe something was missed in the United States. The incredibly important quarterly consumer credit report released by the Federal Reserve highlighted some disturbing trends. The first overall point is that the American consumer continues to deleverage. Yet with a system built on […]
Expanding the debt bubble to a tipping point – US government debt growing 4 times faster than GDP. Retail investors largely out of stock market.
The global market is being held together with the veneer of massive debt duct tape. The solution for much of the European debt crisis was to simply add more debt to the current situation. Solve a debt problem with more debt in other words. All this does is delay the inevitable. The hope is that […]