Richard Koo's Awesome Presentation On The Real Reason Why This Recession Is Completely Different

The Business Insider ^ | Richard Koo

[Palter]

Richard Koo's presentation at the INET Inaugural Conference on the panel entitled: Where are we now? Debts, Deficits and Global Financial Stability[PDF]

[screaminsunshine]

If Democrats have their way we will never recover.

[Neidermeyer]

http://csis.org/files/media/csis/events/081029_japan_koo.pdf

[screaminsunshine]

Guess the market is hovering awaiting the election..???

[major-pelham]

This interests me but I’ve little time today. Did Japan finally raise rates, cleanse the corpse and finally get some growth - or did they simply never come out at all ?

[Palter]

Still digging the hole.

[MeneMeneTekelUpharsin]

Until people in the U.S. return to a system of moral values, accept discipline, learn to respect authority and follow directives from parents, then teachers then bosses-authorities and finally decide to, with suffering, do the job right the first time, we are never going to recover.

I see, on a day to day basis, a huge number of people who simply will not do a job correctly and don't care what anyone thinks about it. A nation can NOT have a healthy economy with that attitude.

[caver]

“I see, on a day to day basis, a huge number of people who simply will not do a job correctly and don’t care what anyone thinks about it.”

Agree 100%. And I don’t see any way it’s going to turn around.

[RipSawyer]

Some actually seem to take pride in doing the job wrong! I think that they would stop and correct themselves if they thought they were doing it right!

[KeyLargo]

Millions out of jobs, out of luck for the long term
More than 6.5 million Americans have been out of work for over 6 months

By Don Lee, Tribune Newspapers

7:17 PM CDT, April 15, 2010

WASHINGTON

— Despite a degree of optimism generated by recent job gains, one grim statistic casts a long shadow over the recovering economy: 44 percent of the nation’s 15 million unemployed people have been out of work for more than six months.

And the evidence suggests many of them may never completely rebuild the working lives they lost.

Not since the Depression has the U.S. labor market seen anything like it. The previous high in long-term unemployment was 26 percent in June 1983. The 44 percent rate this year translates into more than 6.5 million people.

In fact, nearly two-thirds of these workers have been jobless for a year or longer, Labor Department reports show.

And new data on Thursday offered little good news on the employment front: Initial claims for unemployment benefits rose 24,000 last week, to 484,000, the Labor Department reported.Millions out of jobs, out of luck for the long term
More than 6.5 million Americans have been out of work for over 6 months

[lentulusgracchus]

Until people in the U.S. return to a system of moral values, accept discipline, learn to respect authority and follow directives from parents, then teachers then bosses-authorities and finally decide to, with suffering, do the job right the first time, we are never going to recover.

I remember reading articles in US newsmagazines and the financial press (I was reading Barron's a lot, and the WSJ, Fortune, Forbes, plus a couple of subscription investor newsletters) and seeing all sorts of free advice, sternly and sometimes indignantly dispensed, about what "the Japanese" ought to do with their overextended banks. In retrospect .... wow, the arrogance!

The Japanese are pretty polite people, but I would expect there have been a couple of quiet reminders recently of how we used to prescribe BoJ's medicine for them. Citibank, JP Morgan Chase (my mortgagee), Wells Fargo, BofA -- all broker than Mother Hubbard since Lehman rolled over (or was "killed" as per some comment), all walking dead men, while Treasury and the Fed shovel them out our country's line of credit. So much for taking medicine -- they're taking our Black Card instead.

[Southack]

It’s more than debt. This planet has so much over-capacity and over-production that we’ve got deflation even in the face of massive government spending.

Besides over-production, we’ve also got 77 million Baby Boomers hitting retirement age between 2007 and 2025.

Demographics and over-production are price killers.

[Neidermeyer]

Market is down 146 right now ... the fed gov’t has (rightfully) accused GS of fraud concerning it’s conflicting buy and sell recomendations that went against it’s own trades.

[screaminsunshine]

No wonder. Most of the rebound has been due to Financials. The whole shootin match is a massive fraud. This is obviously just an Obama PR move to help with his takeover regulations. Just look at the timing.

[mulligan]

Good statistics. But do not get carried away. They solve nothing. The economy stinks and getting more smelly each day. And what difference does it make if this depression is completely different? 15+ million out of work. Banks still in deep ‘dodo’. Nothing in the wings to get the nation back on a positive business and job path. And those in charge do not know right from left, up from down, that government can solve nothing and can only make matters worse.

[MeneMeneTekelUpharsin]

You have a point there.