Where you'll see real recovery first

THE MORTGAGE COLLAPSE CONTINUES A PACE AND WILL UNTIL THE END OF 2010. THE STRESS TEST WAS SURELY A FARCE. EVEN THE

BANKS THOUGHT SO AND PUSHED BACK THE NUMBERS. SMALL BANKS ($1-$5 BILLION) ARE IN TERRIBLE SHAPE AND WILL NOT GET ANY RELIEF UNTIL 2011, IF AT ALL. SHEILA BAIR ASKED SENATOR DODD TO LINE UP $500 BILLION FOR THE FDIC. THAT SAYS IT ALL.

Fleckestein is looking through a broken looking glass and, predictablity, seeing a broken picture with posssible broken tools to fix it.

The old ways are gone and, unfortunately, government, with its 'socialist style' temporary solutions, has to do something and, hopefully, some of its actions will be effective. With a 'real' unemployment rate estimated to be, conservatively, 12-14% and no where seeing the basement yet, we'll be in this mess a few years regardless of wishful thinking from Wall Street and the Fed.

The recent stock market recovery (DJIA back about 1500 points from its low earlier this year) seems to be disconnected from any fundamental economic reality. Currently, the United States is stuck with the problems that we have borrowed our way into. No accounting-book tricks or untransparent scams (e.g., subprime loan securitization) are going to get us off the hook, because the world has fresh memories of being cheated by us.

The only thing that has kept us from a Great Depression-style crash has been the demand for U.S. Treasuries. However, the economy behind these debt instruments is in deep trouble - both from the conditions that created the recession and the government's response to it. At some point in the not-too-distant future, the world will decide that the U.S. has too much power given its problems and will create a world currency, at which point the U.S. will know real pain that makes 2009 seem like a walk in the park.

One more thing - the reason China has gotten wealthier is that they make things, whereas our primary exports are now cultural - entertainment and unhealthy food. If we want to start paying back debt, we have to find things that the world wants, and we have to figure out a way to make these things at a reasonable price without destroying our environment. I lived in China for three years, and the pollution was so bad that I felt like every day that I breathed the air in China was a day off the end of my life.

LoL   Jas31460 funny stuff !!!    I think most  Americans,,well  the intelligent ones,, are tired of being "trickled on"(read "peed on") by Bovine Scat Reaganomics,  the ongoing GOUGING of our Treasury by the war profitteers(F.Y. Cheney), and the SWEET tax breaks and bail-outs for the greedy, super-wealthy oligarchs and plutocrats that caused this pathetic global mess. 

   The domestic propaganda of "Things are getting better; we've seen the bottom of this recession/depression" is just to calm U.S. - the livestock in the slaughterhouse that will feed the TARPs and future spending.

   This iceberg of a nightmare is still slicing plates, popping rivets, and sooo very far from over.  The wicked scraping sounds of a collapsing economy are being drowned out by the band playing distracting, upbeat songs on the deck. (Nope, save Celine Dion's tune for your memories of a once robust, pre-Bush economy.)  

 Oh, and lifeboat seating is sold out, of course.