Let’s see: We swept the first mortgage crisis under the rug and we’re pretending the second wave isn’t coming, we refused to offer constructive help to people losing their homes, we’ve created a permanent unemployment class without benefits and oh yeah, we still allow bankers to rape and pillage. (Oh, and we’re paying for other corporate malfeasance.)
What could possibly go wrong with the economy?
May 18 (Bloomberg) — Investors should sell U.S. stocks because the market is at risk of a “major crash,” Richard Russell, editor of the Dow Theory Letters newsletter, said in a note to subscribers today.
The decline would follow should the Dow Jones Industrial Average and Dow Jones Transportation Average fall below their May 7 levels, he said. They have risen 1.3 percent and 2.8 percent versus their closing levels that day.
“If I read the stock market correctly, it’s telling me that there is a surprise ahead,” Russell wrote. “And that surprise will be a reversal to the downside for the economy, plus a collection of other troubles ahead.”
Wheee!
Is this a W shaped recession? Or a multistep downward series of small crashes leading to depression? L shaped? Or just a much lower level of New Normal?
Unexpectedly per the news report, unemployment was up again. And we haven’t even reached the end of the school year when many shcool employees, teacher, aides, others, will be laid off or fired or the end of the fiscal year when many public employees will be laid off or fired.
Ought to be interesting times….
If Obama is the Hoover of our times, who will be the FDR
I’m just going to repeat what i’ve been saying and writing for weeks: our institutions have failed us. All of them.
The press has, for the most part, become a sewer of gossip, unsourced rumors, and misinformation, and propaganda from anonymous government officials.
The Senate is hopelessly corrupt: as i mentioned at booman’s place earlier, this year we’ve seen health care reform turn into a health insurance industry bailout, the finanial “reform” has been gutted, the climate bill is packed with industry giveaways, and the immigration reform calls for all workers to carry a biometric ID (the BELIEVE act). And that’s what the supposed GOOD GUYS have done. The Republicans are even more insane.
The House of Reps is better than the Senate, but that’s not a very high bar. And then we have the SCOTUS, a subsidiary of Global Tetrahedron.
Entropy.
Surprise!