Economy Is Going to Get Much Worse

The only people recovering are on Wall St. The rest of America is dying.

in reference to:

"I think the economy is pretty darn awful, but with record profits on Wall Street and all the happy talk about a recovery from the recession (albeit a jobless recovery) it's confusing for many people as to what our economic future really holds. Well, here's relevant statistic that sums it up nicely, one that shows the so-called recovery is mostly a smoke and mirrors vaudeville magician's routine by the same people who either got us into this fine mess in the first place, or enabled the ones who did. Take a peek at this excerpt from Inner Workings David Goldman's blog at Asia Times: This morning’s news that housing starts “unexpectedly” dropped by 11 percent month on month is consistent with my grim view of the American economy. The crystal-meth monetary policy at the Fed makes everyone feel better, until they don’t. The nonstop rise in the price of dollar hedges tells us that it can’t last forever. Large balance sheets attached to the Fed’s money pump can show profits, and the price of spread assets (as PIMCO’s Bill Gross keeps emphasizing) is stupid rich. But at the capillary level, through, the economy is dying and gangrene is setting in. Here’s year on year growth in commercial and industrial loans from weekly reporting banks in the US:"
- Economy Is Going to Get Much Worse | PEEK | AlterNet (view on Google Sidewiki)