SLL: The Humungous Depression

>Evans-Pritchard: America Slides Deeper Into Depression As Wall Street Revels

Happy days are (almost) here again.

Who will be the new Red Fed?

5 responses to “SLL: The Humungous Depression

  1. While I dont agree with SLL that the depression started when the FED initally hit the printing press in 87, there were recoveries that came that weren’t completely a creation of FED intervention until 2009 imo; but whenever the depression started; it still has a long way to go. the usa now has to compete with the world from here on as it has given up every advantage it had over the past 50 years, so incomes have to come down to compete better and resolving the country’s debtload is going to fall on the masses and cripple their earnings and saving too. The millenials shouldn’t be cozying up to sanders, they should be rounding him up with the rest of the social democrats and pushing them into the potomac because their earning years are toast.

    • anonymous

      “the usa now has to compete with the world from here on as it has given up every advantage it had over the past 50 years, so incomes have to come down to compete better “

      Except for corporate executives, Wall Street, and the rest of the Job Creatorz ™.

      The Economy’s Real Problem: That Overpaid Working Class

      by Constantine von Hoffman
      MoneyWatch July 26, 2011, 10:00 AM

      The real problem facing business today? All those overpaid line workers. That’s the conclusion of a new report from consultants Booz & Co., which will surely be welcome news for the many CEOs now surviving on food stamps.

      The study is a masterpiece of rationalization. Using a dizzying pallet of business jargon, the authors have created an argument for non-executive layoffs and wage cuts hermetically sealed from what the rest of us are inclined to call “reality.” It is a wonderful place entirely free of people like former GM CEO Rick Wagoner and Richard Fuld, the last CEO of Lehmann Bros., who respectively got $14 million and $34 million a year to bankrupt their companies. (I don’t remember what Fuld’s golden parachute was, but Wagoner got $20 million for driving the world’s largest corporation into a ditch.)

      The core of the consultant’s argument is this:

      “Compensation policies have gotten woefully out of whack, such that wages for some workers in some jobs greatly exceed what the market says those jobs are worth. … Workers with many years of service have seen their wages grow in a steady trajectory year after year, fueled by adjustments for inflation as well as annual merit raises that often surpass the rate of inflation, without any increase in responsibilities or required skills. Repeated enough times, these compensation increases can morph into an exorbitant trend.”

      Lest anyone think the writers — Harry Hawkes, Albert Kent and Vikas Bhalla — are referring to executives (whose salaries have risen 23 percent in the past two years alone — that is, during the Great Recession and its aftermath), their example is named Joe the Mechanic. Messers. Hawkes, Kent and Bhalla are unique in many respects, not the least of which is they are the only people to have noticed income growth in the nation’s middle class…

  2. Grenadier1

    “Its gonna be Yuge! You’re gonna love it. Its gonna be the most luxurious depression you have ever seen. People will love our depression, I am tellin ya. Just watch.”

  3. The Greatest trick the devil ever played…..was getting everyone to refer to the last decade as the ‘great recession’.

  4. $26,000,000,000,000 debt – at the FedGov level alone – cannot be “repudiated” or “written off”. That leads to cascading defaults (national & worldwide) and Systemic Collapse. That’s why it’s called a Debt Trap: there is No Way Out. And the next Fed Head will be Stanley Fischer, ex-Bank of Israel. Don’t worry. The Eskimos – whose IQ’s are legendary (cf. Einstein, Freud, and Marx) – have everything under control