Posted on 11/09/2009 2:38:51 PM PST by blam
When the Borrowers Stop Borrowing
By Bill Bonner
11/09/09 Beunos Aires, Argentina – The Dow moved up 17 points on Friday, leaving it above the 10,000 mark. Gold rose too – it is at a new record high, only $5 below $1,100.(The DJIA closed today up 203 points)
According to the news reports, the US economy is ‘growing’ again. Yes, that’s the official storyline.
But wait, what kind of growth is this? David Rosenberg:
“All we can say is that if the overwhelming consensus is correct that the recession is behind us, then what we have on our hands is the mother of all jobless recoveries and whatever economic growth is being squeezed into the system comes courtesy of the most dramatic intervention by the government in recorded history, including the New Deal 1930s era. President Obama is now running fiscal deficits that would have made FDR blush.”
[snip]
It’s so obvious that the market is in another mini-bubble. The only question is when it collapses again, and to what extent.
I honestly don’t understand how it could be “growing” (looking at closed businesses around here) or where they are getting this information from.
Everybody I know is cutting back on their rates, scaling down and getting ready to run for the hills. Hardly a growth economy. What statistics are Barry and the Boyz using?
I consider it the world's largest casino, and hoping that you guess right and your gambles pay off.
LOL. Me too!
Someone at another forum described it as "the bulls are being led to the slaughter".
As for me, I don't know what to think. The same government that promised us unemployment would not go over 8% if we passed the stimulus is now remaking our health care system. Add that to already massive and growing debts, fewer tax payers, and fewer consumer dollars to create more tax payers, and it doesn't look good. IMHO.
Agreed. Everyone I know, business workers and business owners alike, are hunkered down, spending no more than absolutely necessary and stockpiling food, hard cash, weapons and ammo. People are downright scared!
That nobama and his thugs can’t see this is very understandable. They truly don’t care. As long as their agenda is being implemented, and, unfortunately, it is, they just flat don’t care.
The financial institutions are only making money because they are borrowing at zero from the Fed and being paid interest by the Treasury. The value of homes is still falling and consumer debt is falling. My guess is that we will hit at least 13% unemployment by mid next year.
DC..get ready for the peasants with pitch forks.
When the stock market finds reason to rejoice at the weakness of the US dollar and at rapidly declining employment opportunities for Americans, it is fair to say that the interests of Wall Street and Main Street have diverged rather violently, at least for the moment.
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