google.com, pub-6370463716499017, DIRECT, f08c47fec0942fa0 AlfaBloggers Best Bloggers Team Of Asia : US In Recession Already
Showing posts with label US In Recession Already. Show all posts
Showing posts with label US In Recession Already. Show all posts

Saturday 15 September 2012

US In Recession Already



I would like to propose a new definition of being in a recession. I think it's much more accurate in describing economic woes.

Your economy is in a recession any time the unemployment rate rises above 7% or the workforce falls below 75% of people who want to have full time jobs for more than 6 months in a row.

Also: Your economy is in a depression any time unemployment rises above 8% or the workforce falls below 70% of the people who want to work full time jobs for more than 1 year.

We have been in a depression by my definition for at least 3 years. EVERYTHING Obama's government is doing makes it worse in the long run.
I think the Fed action is political in design. Everyone in the lower echelons of the economy knows damn well we are in a depression. They know this QE3 thing isn't going to benefit them one whit, but they see the stock market rising while everything else is going to Shiite. This will only increase resentment of achievers, which helps the dems, or at least that's the calculation. Macroeconomists labor under the misconception that economics is largely psychological, and that the psychology of market participants can be manipulated. But does the ability to make the Dow go up a few hundred points because of the psychology of a few hundred traders really have an impact on it as a whole? Not any more.




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