Results 1 to 2 of 2

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

  1. #1
    Senior Member carolinamtnwoman's Avatar
    Join Date
    May 2007
    Location
    Asheville, Carolina del Norte
    Posts
    4,396

    This is No Recession: It’s a Planned Demolition

    This is No Recession: It’s a Planned Demolition


    by Mike Whitney
    Global Research, August 12, 2009


    Credit is not flowing. In fact, credit is contracting. That means things aren’t getting better; they’re getting worse. When credit contracts in a consumer-driven economy, bad things happen. Business investment drops, unemployment soars, earnings plunge, and GDP shrinks. The Fed has spent more than a trillion dollars trying to get consumers to start borrowing again, but without success. The country’s credit engines are grinding to a halt.



    Bernanke has pulled out all the stops.

    Bernanke has increased excess reserves in the banking system by $800 billion, but lending is still slow. The banks are hoarding capital in order to deal with the losses from toxic assets, non performing loans, and a $3.5 trillion commercial real estate bubble that’s following housing into the toilet. That’s why the rate of bank failures is accelerating. 2010 will be even worse; the list is growing. It’s a bloodbath.

    The standards for conventional loans have gotten tougher while the pool of qualified credit-worthy borrowers has shrunk. That means less credit flowing into the system. The shadow banking system has been hobbled by the freeze in securitization and only provides a trifling portion of the credit needed to grow the economy. Bernanke’s initiatives haven’t made a bit of difference. Credit continues to shrivel.

    The S&P 500 is up 50 percent from its March lows. The financials, retail, materials and industrials are leading the pack. It’s a “Green Shoots

  2. #2
    Senior Member roundabout's Avatar
    Join Date
    Jun 2007
    Posts
    3,445
    The free market is a sham to conceal the crimes of the rich. Read Taibbi. Read Marx. Karl, not Groucho.
    While I will have to admit I know very little about economic history, I feel safe saying we have never had a free market during my lifetime. The Federal Government has been using tax monies to subsidize different industries in this country for many years. That hardly makes for a free market. JMO

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •