pstarr wrote:Greece, Spain, Italy Portugal, Ireland and the rest all went through a manic housing boom just the same as the US. And when that boom failed so did household accounts and the banks that held them.
onlooker wrote:Tell me how the average American being duped into mortgages they could not pay
onlooker wrote:http://www.zerohedge.com/news/2016-03-09/former-fed-president-we-injected-cocaine-and-heroin-system-create-wealth-effect
See what I am talking about setting up the table.
Even former US central bank officials have their doubts.
Richard Fisher, the outspoken former head of the Federal Reserve Bank of Dallas, said in a television interview on Wednesday night that the US Federal Reserve "injected cocaine and heroin into the system" to push up asset prices in the hope of triggering a wealth effect. Now, he said, "we are maintaining it with Ritalin".
And economists, who have long hero-worshipped central bankers for rescuing the global economy from a deep recession after the financial crisis, have started to question whether they're now overstepping the mark.
Some even contend that their policies are stoking the next financial crisis.
http://www.voxeu.org/article/shrinking-planetary-gdp
Presenting the October 2015 IMF World Economic Outlook, Maurice Obstfeld (2015) identified the fall of commodity prices as one of the powerful forces shaping the outlook for the world economy. The strength of this force, however, is underestimated by the official forecasts in the IMF’s flagship publication. As illustrated in Figure 1 the IMF world economic outlook database reports a reduction of Gross Planet Product (GPP) for the year 2015 by -3,8 trillion dollar (-4.9%). A nominal reduction of GPP of this size has occurred only once since 1980 (the starting year of the IMF database), namely at the start of the Great Recession when GPP contracted by -5.3%. Table 1 illustrates that all previous contractions of nominal GPP are associated with major crises in the world economy.
onlooker wrote:http://www.shtfplan.com/headline-news/this-is-how-bad-the-economy-really-is-walmart-customers-are-too-broke-to-shop_03092016
Walmart customers to broke to shop. Even the cheap products of
Walmart. Oh and remind those who point out that online shopping is going strong, the actual stores that have been closing are what mostly employed many people.
americandream wrote:Trump of course may bring temporary relief.
dolanbaker wrote:americandream wrote:Trump of course may bring temporary relief.
Sounds like an advert for haemorrhoid cream!
americandream wrote:Zerohedge is a zerohedge. He would not be able to hedge his way out of a paper bag frankly. His understanding is peripheral.
americandream wrote:onlooker wrote:http://www.shtfplan.com/headline-news/this-is-how-bad-the-economy-really-is-walmart-customers-are-too-broke-to-shop_03092016
Walmart customers to broke to shop. Even the cheap products of
Walmart. Oh and remind those who point out that online shopping is going strong, the actual stores that have been closing are what mostly employed many people.
The online investment monies are presently in India which is taking off from where China has left off. The American market (being a mature market) will possibly move to top tier consumerism...the working class are too insecure for the moment. Trump of course may bring temporary relief.
Outcast_Searcher wrote:americandream wrote:onlooker wrote:http://www.shtfplan.com/headline-news/this-is-how-bad-the-economy-really-is-walmart-customers-are-too-broke-to-shop_03092016
Walmart customers to broke to shop. Even the cheap products of
Walmart. Oh and remind those who point out that online shopping is going strong, the actual stores that have been closing are what mostly employed many people.
The online investment monies are presently in India which is taking off from where China has left off. The American market (being a mature market) will possibly move to top tier consumerism...the working class are too insecure for the moment. Trump of course may bring temporary relief.
Yeah, this sounds like pstarr claiming people can't buy oil products for a half to third of what they cost in recent years, even as US GDP increases, housing and rent costs increase, people buy 17.5 million new cars a year, moving to bigger models due to "cheap gas", etc.
Even as, for example, I see that the US jobless rate improves again. (People with jobs can shop at Walmart. And before someone (falsely) says 100 million people are unemployed, people on Social Security, pensions, etc. can also shop at Walmart).
http://www.reuters.com/article/us-usa-e ... SKCN0WC1N8
The investment world has an embarrassingly short attention span. But frankly, it is a necessity. If daytraders, hedge funds and other horses in the carousel actually had to look beyond the next week of market activity or study back on market history in comparison to today, then they would not be able to retain their blind optimism, which is exactly what is necessary for them to continue functioning. If they were all to examine the global financial situation with any honesty, the entire facade would collapse tomorrow.
At bottom, it is not central bank stimulus and intervention alone that drives equities and bond markets; it is the naive faith and willful ignorance of average market participants. There is a problem with this kind of economic model, however. Reality is never kept in check indefinitely. Fiscal truths will be exposed, one way or another.
How does one know when this full spectrum shift in awareness will occur?
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