For Simple-Minded Keynesians

For those who haven’t yet grasped the uselessness of government policy, please read Charles Hugh Smith’s simple fourteen point explanation below. It details the steps government has taken, why they are failing and why the middle and poorer classes must get poorer. It also suggests that we are close to the end of the Ponzi scheme that has provided the [...]

The Keynesian Legacy Unravels

“Those who cannot remember the past, are condemned to repeat it.” George Santayana Ideology is powerful, capable of masking unpleasant facts. Whether we recognize it or not, we are all slaves to ideology. Economists are no different in that regard than other people. They hold preconceived ideas which affect the interpretation of data and facts. In the extreme, ideology is [...]

Our Fate Is Sealed

These four links from yesterday’s Drudge Report say it all: JOBLESS…  INFLATION… POVERTY… RECESSION… Five years into this mess and we are no closer to climbing out. Collapse of financial institutions was averted (temporarily?) by massive infusions of government and taxpayer funds but the economy has not budged. More and more people are beginning to think that we should have [...]

Fed: Recession Certain?

How convenient is it that the following information based on data from the Federal Reserve was not made public before the election: What’s interesting about this index is the current reading. At 20%, the index is at a level that has ALWAYS been followed by a recession. As you can see below, the index has never approached 20% without a subsequent recession. All [...]

The Recession Didn’t End and Don’t Call This A Recession

James Pethokoukis is the Money & Politics columnist-blogger for the American Enterprise Institute. He is insightful and a good source of economic analysis for the laymen interested in understanding economics. He writes well and delivers data in easy to process form. In short, he should be a must-read for those wanting to understand our economic situation. In his latest post he [...]

The Recession Never Ended And Will Not Until A Depression Occurs

Our country is getting poorer. Part of the decline is due to the economic recession; part of it is due to the secular decline that has been addressed in several articles on this website (here is a recent one). Sentier Research recently released a report detailing what has happened to median incomes in this country: After adjusting for changes in consumer [...]

Not Good Signs

From Michael Panzner at Financial Armageddon comes this collection of bad news: “The Last Time Wall Street Was This Negative, We Were In A Recession” (Business Insider) As second quarter earnings season begins, companies are slashing earnings guidance at rates not seen in the last three years. Tobias Levkovich, who heads Citi’s U.S. equity strategy research, points out in a note to [...]

The View Is Bad From All Angles

From Michael Panzner at Financial Armageddon comes these observations: Different Vantage Points… …but similar perspectives: The small businessman (via “What we see is that people aren’t spending as much as they used to,” [athletic gear store owner Jeff Pape] said. “People that might have come into the store and spent $150 or $200 on stuff are now backing off to [...]

Declare A New Recession Already!

From The Economic Collapse comes the following 17 reasons why those hoping for a recession in 2012 are in luck: 1. U.S. retail sales have declined for three months in a row.  This is the first time this has happened since 2008.  Every other time this has happened in U.S. history (except for once) this has signaled that the U.S. economy was [...]

Happy Days Are Here Again

Michael Panzner, somewhat tongue-in-cheek, explains why it is a good thing the recession is over: It’s a Good Thing It’s a good thing we’re in a recovery and there’s no real prospect of another downturn (at least that’s what Wall Street “strategists” and politicians keep telling us). Otherwise, reports like these might be a cause for concern: “Pawn Shops Go [...]

Is The Fed Done?

Is the Fed done easing? That is the question many investors would like answered. How one answers this question has important implications regarding the arrangement of a portfolio. If you believe the Fed will continue, then financial assets may hold their current range. If you believe the Fed will step aside, then financial assets are likely to drop, perhaps plummet.  [...]

Inevitably, It’s All Falling Apart

For a few years I have been warning that there can be no recovery. The passage of time has not changed my opinion but is beginning to change the opinions of others who previously believed the government recovery propaganda. Even Keynesians tip their hands as to the real state of the economy when they claim the stimulus was not big [...]