The first downturn of this depression is still continuing.
By Daniel at 24 November, 2009, 12:15 am
For the great majority of Americans, especially Middle Class Americans , the first downturn is still continuing.
For millions who have no jobs, vanishing savings, negligible income, no credit and cannot afford to even rent a house (and must live with family or friends) the downturn has become a depression.
For such people the Statistical Recovery is a cruel hoax. To them talk of a second downturn( implying there is a recovery at present) seems both farcically academic and callously remote from the daily reality of still compressing material quality of life and rising fear about providing even the very basics of a lower middle class life.
It’s funny how some people talk about the economic “recovery”. They talk as if we can just give the recovery a little more time and all will be fine. Time is the ultimate healer right?…….
Here’s the funny thing about stimulus: IT’S NOT FREE. Every day that the stimulus is in place, it’s costing the American people…. a lot.
So we have put in place the most unprecedented and largest ever stimulus package in the history of Mankind and after all this time, all we have to show for it is a slower pace of deterioration? That’s not enough….. and not worth the significant and negative implications of the massive stimulus. We should be growing at 5 to 7% by now with less stimulus, if history is any indication!
There are indicators out there that are starting to sound alarms, telling us that the current stimulus programs are starting to become unsustainable. The rapid deterioration of the USD is one of them. The increased vocal opposition by creditor nations is another. Commodities at record levels is another. Steepening yield curves, declines in housing market (despite home buying credits), etc..etc…etc…
Many central banks around the world are already talking about removing stimulus. They see bad things on the horizon. Why don’t we? Hmmm…..
I’m tired of hearing “deteriorating at a slower pace”. Tell you the truth, I’m ready to hear “significant improvement”…and have been waiting for these words for months…..but I’m still waiting. But all I see is a country still on crutches and the rehabilitation hasn’t even begun.
We’re running out of time. Seriously. If this stimulus is going to do something positive…..it better do it now and do it soon before it becomes unsustainable. “Deteriorating at a slower pace” is not good enough…. we should be past that by now.
- Mr. Big
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