No replies to this topic

[nimblebear]

This article maybe gets across my prior attempt to explain what I see happening in our economy.

Ultimately this will greatly affect investor appetite for bonds, and then will hit stocks fairly hard.

http://www.oftwomind...-ended8-13.html

"The Recession That Never Ended: 2008 -2013 (and Counting) (August 26, 2013)" by Charles Hugh Smith.

"The reality is that the recession never ended for 95% of U.S. households, and by many metrics the recession has deepened.

If you must have charts for proof, then the brief article contains some very stark ones.

1) For example, does a chart of full-time employees relative to the population look expansionary?

or

2) how about a chart of median household income, which adjusted for inflation is down 7.2%?

or

3) how about real personal income less government personal transfers on a 5-year basis (the red line)? Notice that the red line only popped briefly above 0% into "growth" in late 2012 as those who could declared income in 2012 before the 1013 tax increases kicked in.

None of these charts is even remotely close to expansionary!

We can further question broad-based measures of expansion such as GDP statistically: in economies with high income/wealth inequality such as the U.S., the top 5%'s expansion of income and wealth creates an illusion that the entire workforce is doing better when the opposite is true.

If you doubt this, please examine the attached article to see the chart of income disparity.

Note that the vast majority of income increases have accrued to the top 5%.


Question: Does hope float on an artificial sea of liquidity, and are stocks the [un]lucky cast of characters on the Titanic before it strikes the iceberg of inflating interest rates ?