Posted on 06/30/2010 8:10:16 PM PDT by Freedom_Is_Not_Free
Banking analyst Meredith Whitney gives her economic analysis for second half 2010 & beyond.
Credit is tight. Banks aren't lending. Home sales and prices are still falling.
Brutal to hear her describe people choosing not to pay their mortage to support their current lifestyle. Not so brutal to note that when you subsidize bad behavior, you WILL get more of it. Much more of it.
Still painful to hear her describe it.
Moral Hazard is reality. When people suffer pain from a bad risky, they shun risk. When we socialize loss from risk, people will gamble outright.
it’s not a depression like it’s not a tumah!
What we are in is a deep recession where the god damn government is doing all it can to keep us here. The so called stimulus didn’t work. The great thing is that the gov is all tapped out and many people are realizing that big ol gov can’t get us out of recession by spending trillions of dollars is the same government that won’t be able to take care of our health care needs. All we need are smart, well spoken Republicans to articulate a positive common sense game plan and thus win congress and the presidency back. And then they have to make sure they don’t eff it up again like the rinos did the last 8 years under bush the sell out.
Zombie banks with lower profits and stock valuations.
2nd floor... Going down.
The government is far from “tapped out”. They have an unlimited supply of money they can print and they won’t stop just because we exceed 100% GDP. The government has created enormous damage and making the depression longer and deeper than it would have been, and they will just keep on going until they eventually debase the currency.
There is no end to how much further damage they can and will cause.
Did you watch the videos? I was kind of hoping Freepers would rather than just read a snip of my post and respond to that.
My writing is worthless. Whitney’s analysis is worth paying attention to.
She’s a very sharp banking analyst. Disregard her comments at your peril.
If you believe in the idea of political capital, they won’t be spending any more as Obama and the Dems spent all of their political capital...sorta like how Bill Clinton blew his wad all over “that woman!” :P
The End of the Nominal Recovery - Part I & Part I: Boarded Up, by Eric Jaszen at iTulip.
Please read the article for the entire analysis with charts and graphs. Below are some teaser highlights:
“The last time the economy struggled under the weight of public debt taken on to stimulate demand after a private-sector credit collapse was during The Great Depression. Is the nation’s balance debt-heavy sheet able to finance ongoing stimulus spending without triggering a U.S. debt and currency crisis? The question is once again divided along ideological lines; it’s 1937 all over again...”
(snip)
“...for the next 20 years inflation and interest rates will rise as policy seeks to deflate debt against wages and the dollar; real housing prices and wages decline.”
(snip)
“An optimist might conclude that home and car sales are thus only as bad as in 1983, except that the economy was only one quarter the size of today’s; this post-recession housing market contraction is proportionally four times worse than the housing downturn that occurred at the end of the early 1980s recessions.”
(snip)
“Mortgage rates can only go up over the next ten years and home prices have only one way to go: down. The VAT will eventually win, inflation will rise, and real wages will fall some more. That’s the best case scenario, a continuation of a nominal but not a real recovery.”
bump for truth
bttt
buttt
buttt
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