Posted on 06/12/2010 6:00:03 PM PDT by combat_boots
The dichotomy of the following two pieces is rather sobering, when one considers the implications.
First, from George Soros:
“The collapse of the financial system as we know it is real, and the crisis is far from over,” Soros said today at a conference in Vienna. “Indeed, we have just entered Act II of the drama.”
Soros, 79, said the current situation in the world economy is “eerily” reminiscent of the 1930s with governments under pressure to narrow their budget deficits at a time when the economic recovery is weak.
That, of course, is because the original medicine was incorrect. The entire financial world, including Soros, advocated for (and got) more Keynesian stimulus - that is, more debt applied to an over-levered debt-laden world.
Indeed, as the chart below shows, the fundamental instability here is not one of excess capacity, it is one of excess debt - an excess that has built up since the early 1980s:
(Excerpt) Read more at market-ticker.org ...
None dare call it what it is... the beginning of another depression.
Instead they opt for words like “correction” and “slowing recovery”...
Regulation and law without enforcement is no law at all.
When anyone crys, “Deregulation!”, they need to be reminded of the simple fact.
In the beginning, I thought ‘There’s no way this could be like the Great Depression. We didn’t have an ecological disaster like the Dust Bowl (Black Blizzard).’ Well,things just got alot more interesting...
When anyone crys, “Deregulation!”, they need to be reminded of the simple fact.
The simple truth,
The Dust Bowl was a contributing factor to the Great Depression, but it wasn’t a cause.
The cause then is the same problem we have now: too much debt, far in excess of ability to service said debt. The three large-scale debt deflations we’ve had in the US (1873, the 30’s and now) all were/are tied to debt on real estate. In 1873, it was railroad real estate, the 30’s was farm/commercial/residential real estate and now it is residential real estate, with commercial RE tossed in as a cherry on top of the poop pie.
Exactly. The Black Blizzards hampered ‘recovery’ just like the Gulf oil gusher has the potential to do.
The politicalization (government intervention) of each crisis creates more and more uncertainty.
You have to be insane to want to hire anyone today.
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