Tag Archive for stock market

‘Financial Terrorism’ in America

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Wow. This powerful, data-heavy paper comes off pretty bombastic, and I admit I’ve only given it a cursory read, but I’ve spot-checked the sourcing, and it holds up better than a lot of this kind of stuff that I come across. I’ve never seen the source before — Amped Status — but I’ll be taking a deeper look at that, too. It has a kind of Alex Jones (crazy) vibe, but I think it may actually be rooted in sanity.

I wish I had time to do a more thorough analysis, but I do not, so I wanted to make sure I shared this. You should just go read it. But in case you need some inducement, here are a few zingers from the report.

  • According to most recent Census Bureau data, from 2005 – 2009, average US household wealth declined by 28%. This represents a loss of $27,000 per household. Currently, at least 62 million Americans, 20% of US households, have zero or negative net worth.
  • In 2005, 25.7 million Americans needed food stamps, currently 45.8 million people rely on them.
  • While 68.3 million Americans struggle to get enough food to eat and wages are declining for 90% of the population, US millionaire household wealth has reached an unprecedented level.

Via Nomi Prins on Twitter.

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E-Trade Whines over ‘E-Trade Baby Loses Everything’ Vid

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I’m posting this partly because it’s hilarious and partly because I just found out that E-Trade abused YouTube’s copyright complaint policy to try to get and got this parody taken down. (See below.) So now I feel it’s my obligation as a free thinker to highlight how particularly awful E-Trade is (that is, above and beyond the fact of their normal business that made them deserving of this spoof in the first place).

Via Political Remix Video via Jonathan McIntosh on Google+.

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The Coming Second Dip

double-dip-cartoon
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I don’t plan to spend a lot of time on this blog writing about acute economic scenarios like our likely double-dip Great Recession, as I have my eyes a good bit further down the road. But I’ve been seeing a lot lately about us being on the verge of that second dip. I don’t do analysis on this level, but I do pay attention to it, so I thought I’d share some. The stock market is beginning to bet on that second dip, which of course doesn’t help us avert one (if that’s remotely possible).

For a light listen, NPR is on the ball with “Double Dip: Is the U.S. Headed for Another Recession”.

So how much does this matter? This report from the Economic Policy Institute suggests the mere slow recovery is having a measurably negative impact:

[T]he last six months have seen an average growth rate of less than 1%, a rate of growth that fully explains why the previously declining unemployment rate reversed course in the past six months.

So imagine what another downturn would do.

For a slightly headier review of the prospects, check out Harvard economist Kenneth Rogoff’s analysis. He notes:

But the real problem is that the global economy is badly overleveraged, and there is no quick escape without a scheme to transfer wealth from creditors to debtors, either through defaults, financial repression, or inflation.

Which of those sounds most enticing? (I know my choice, if I can’t have none of the above.)

For true long-game insights, never miss Jack Rasmus. On the impending “dip” (plunge?), and how it relates to the recent debt-ceiling “debate”, Jack’s take is cynical but probably very realistic:

No wonder the stock market shuddered on Monday, notwithstanding all the “good news” about the debt deal. The performance of the real economy was far more important and “real” than all the huff and puff about debt ceilings and defaults by the US government. The alleged “good news” of the debt agreement was overwhelmed by the undisputable “real news” that the real economy was heading for a relapse.

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