Posted on 07/02/2009 11:06:00 AM PDT by Red in Blue PA
The slide in employment is representative of what the U.S. economy faces for years to come, Pimco co-chief investment officer Bill Gross told CNBC.
A slow-growth scenario continues to play out as consumers who are losing their jobs or are in fear of facing unemployment cut spending and inhibit economic growth, said Gross, who helps manage the world's largest bond fund at Pacific Investment Management.
He spoke after a government report showed the economy lost 467,000 jobs in June and the unemployment rate moved to 9.5 percent.
"Much like we saw with the Depression, attitudes change, and so consumers and investors will now become conservative savers as opposed to spenders," Gross said in a live interview. "Spending as driven by asset appreciation in terms of houses ... that game stops, that game has stopped and we must now move in another direction."
(Excerpt) Read more at cnbc.com ...
The time is ripe for the emergence of the next Ronald Reagan — if there’s one.
I bet against him on this.
The people of the depression were a different breed and had much longer (and probably more reliable) memories.
They'll reinflate and we'll be off to the races again within 18 months, perhaps. And the bad money will have gotten (if it were possible) worse by orders of magnitude.
Yes, you can quote me.
By now, everyone with a functioning brain knows this is on purpose.
By now, everyone with a functioning brain knows this is on purpose.
Of course it will Obama stinks.
No, we'll be in this for at least 10 years.
People need to make sure not to confuse the Fed with the Federal government.
The Federal government would re-inflate in a heartbeat - if they had the power to do so (which they don't)
This economic issue is a "credit event" being driven directly by the Fed (big banks). There is no way that they are going to allow our economy to re-inflate anytime soon. They're out to steal the amassed wealth of our nation - and many parts of the world.
Our Federal government operates economically at the pleasure of the Fed.
You can quote me on that. ;-)
My business is practically gone and it happened within 6 months. Not a gradual change but a sudden “lets put the brakes on NOW!”
My husband works for a large, multi national company with manufacturing all over the world that might have to shut down the US plants if this crap and tax bill passes.
This is bad and I have lived through many recessions and it has NEVER been this bad and it did not have to be this way with the right kind of stimulus (tax cuts for business and people) we would already be out of this morass.
I agree with your inflation bet.
I pulled $200k out of my house when I downsized @ 5% fixed for 30 yrs.
Expect to pay it back with Baraqqi minibucks.
the ramifications will affect us indefinitely, as did those caused by the New Deal.
I think you fail to see that the sort of "prosperity" created by bad money and bad policy is every bit as devastating as a depression.
In any event, the people will be induced to sell their souls for bread and circuses, as history dictates. For those who don't, yeah, they'll have their own personal depressions.
We'll be off to the races in no time.
yes, it will take several election cycles to undo this mess
The economy will not recover so long as it continues to be nationalized. It will recover when the trend is reversed.
In other words the economy will stay weak until the liberals are sweeped from office and the adults are put back in charge.
Hey, tell him my heart bleeds.
How do you see Social Security and Medicare staying alive without lots of inflation? If those fail, I think there is election hell to pay.
I remember Jimmy Carter. I predict the economy will stay weak for about four (hopefully not 8) years.
The Federal government will refuse to cede any of its power that it's accumulated over the years.
This means they will have to come up with "new ideas" to establish more trust funds, just like they did with Social Security and Medicare.
I'm expecting that they will do something to force many retirement accounts into a massive trust fund - which they can they steal from to fund their ongoing operations.
We are about to see what level of Federal government stealing people will out up with. Over 50% of our population relies on significant money from the Federal government. The rest of us are so busy working to put food on the table that we don't have time to effect change - yet!
The Fed has tightened the noose on our governments (Federal, State, and Local). The governments have no means of fighting back.
What are they going to do? Abolish the Fed? Guess what would happen to our (and the world's) economy the second that legislation was signed.
Our entire economy is orchestrated by the Federal Open Market Committee (FOMC) and implemented by the President of the New York branch of the Fed.
All of these folks are unelected.
This recession (depression) is diffent since it is "credit-driven".
Essentially, the Fed (big banks) pulled the credit carpet out from underneath everyone. And they did it intentionally in order to steal wealth and create debt slaves.
The last time we had a credit driven recession was in 1929.
No, I think people fail to see that we are not heading for hyper-inflation, or even major inflation.
We're in a deflationary spiral - and it's about to get much worse.
Again, the Federal government would love to infate - buy they don't control our economy, the Fed does.
The Fed (big banks) created this recession (depression) by yanking credit. They have absolutely no desire to inflate - that would make existing debt easier to pay off.
The Fed's desire is to put the "sqeeze play" on by making it HARDER to pay off existing debt - therefore causing more transfer of real wealth to them.
People will be clamoring for major inflation once this hits in full.
Folks need to get out of all existing debt as fast as possible - and they need to begin doing it now.
The economy will begin to recover when Obummer is run out of office
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