July 9, 2012
Another Recession

By our analysis, the U.S. economy is presently entering a recession. Not next year; not later this year; but now. We expect this to become increasingly evident in the coming months, but through a constant process of denial in which every deterioration is dismissed as transitory, and every positive outlier is celebrated as a resumption of growth. To a large extent, this downturn is a “boomerang” from the credit crisis we experienced several years ago. The chain of events is as follows:

Financial deregulation and monetary negligence -> Housing bubble -> Credit crisis marked by failure to restructure bad debt -> Global recession -> Government deficits in U.S. and globally -> Conflict between single currency and disparate fiscal policies in Europe -> Austerity -> European recession and credit strains -> Global recession.

In effect, we’re going into another recession because we never effectively addressed the problems that produced the first one, leaving us unusually vulnerable to aftershocks. Our economic malaise is the result of a whole chain of bad decisions that have distorted the financial markets in ways that make recurring crisis inevitable.

- John Hussman (This essay is a must read.)

6:14pm  |   URL: http://tmblr.co/Ze50rxP0xqPm
Filed under: recession economics 
June 22, 2012
"Ultimately the deep problem isn’t about personalities or individual leadership, it’s about the nation as a whole. Something has gone very wrong with America, not just its economy, but its ability to function as a democratic nation. And it’s hard to see when or how that wrongness will get fixed."

— Yikes. Krugman and Wells via The New York Review Of Books.

June 4, 2012
"The developed world’s youth shouldn’t expect much help from an older generation that has preserved its generous arrangements at the cost of increasingly stark prospects for its own progeny. Instead the emerging generation needs to push its own new agenda for economic growth and expanded opportunity."

via Joel Kotkin @ The Daily Beast

April 8, 2012
underpaidgenius:

This time it’s different:

Still Crawling Out of a Very Deep Hole By Teresa Tritch
What distinguishes this jobs recovery from others is the sheer scale of the job loss that preceded it. The economy has regained 3.6 million jobs since employment hit bottom in February 2010, but it is still missing nearly 10 million jobs — 5.2 million lost in the recession and 4.7 million needed to employ new entrants to the labor market. The Economic Policy Institute estimates that at the average rate of job creation in the last three months, it would take until the end of 2017, fully 10 years from the start of the Great Recession in December 2007, to return to the prerecession jobless rate of 5 percent.
And there is no guarantee we will ever get there. It took about four years to close the job gaps created by the recessions that began in mid-1981 and mid-1990. In the tepid expansion after the 2001 recession, the job gap had still not closed by 2007.

Perhaps it’s a depression, not a recession?

I recommend reading John Hagel and Deloitte’s The Shift Index report to better understand what’s been going on with the national and global economies. I don’t understand why this report is not more widely discussed. It’s from the the writers/research center behind The Power Of Pull.

underpaidgenius:

This time it’s different:

Still Crawling Out of a Very Deep Hole By Teresa Tritch

What distinguishes this jobs recovery from others is the sheer scale of the job loss that preceded it. The economy has regained 3.6 million jobs since employment hit bottom in February 2010, but it is still missing nearly 10 million jobs — 5.2 million lost in the recession and 4.7 million needed to employ new entrants to the labor market. The Economic Policy Institute estimates that at the average rate of job creation in the last three months, it would take until the end of 2017, fully 10 years from the start of the Great Recession in December 2007, to return to the prerecession jobless rate of 5 percent.

And there is no guarantee we will ever get there. It took about four years to close the job gaps created by the recessions that began in mid-1981 and mid-1990. In the tepid expansion after the 2001 recession, the job gap had still not closed by 2007.

Perhaps it’s a depression, not a recession?

I recommend reading John Hagel and Deloitte’s The Shift Index report to better understand what’s been going on with the national and global economies. I don’t understand why this report is not more widely discussed. It’s from the the writers/research center behind The Power Of Pull.

(via papoy-unicorn-toy)

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