Downturns are not what they once were, fairly regular and temporary. The oil biz had a bad one like this in the early eighties, if you recall. They capped a lot of wells and the refiner I worked for shut down over half the plant.
But now the downturns are deeper and longer..
This is due to debt ....
It sure is not due to a lack of money in the pipe. Even the fed banks in China and the US or anywhere cannot push a cooked spaghetti.
The problem is that the Fed and the government is not allowing the MARKETS TO CLEAR...
People have to go broke...businesses had to close and new blood comes in, starts everything back into a upswing..
The money markets are all screwed up as well. When you have bonds at the bottom, and stocks faltering...at the same time you have hard assets crumbling...there is no place to put your money.
Fed has been propping up the stock markets and that worked for a while, but the same thing is going on everywhere else with quantitative easing..they are now out of ammo to temporarily fix markets. It all has to come apart at some point.
Fudging the data and market tinkering has made Obama look competent to the left. But the bill is due to pay the price of that.
Obama, and the Europeans as well as Japan and China wrote checks they cant cash.
The time of reckoning fast approaches...these are just warnings..telling us to run like hell or pray. Maybe dig a hole...
I can’t run, and praying has not helped....so I have been digging..
No argument from me on those points. I’ll give you 17 trillion reasons why, if interested.