Who do they work for, really?

It's been two years since the financial collapse, and where are we now? Our unemployment is hovering around 9.8%, our dollar is failing from the policies of the Federal Reserve Bank, and our national debt has increased by trillions, but take  heart! Those on Wall Street continue to live in the lap of luxury.

Because of the bailouts and further intervention by the Fed, our nation's financial system has been artificially inflated by the theft and reallocation of the incomes of individual Americans. Rather than doing its duty and staying out of the economy, the federal government continues to intervene and reward bad behavior, causing far more harm than good. All the while, the practices that led us here have not changed, and the American people are having their wages legally robbed from them to help the bankers on Wall Street.

So ask yourself:  Do your Congressmen work for you, or for the lobbyists and special interests?

Tranquilized the Economy

I Don't Wanna Grow Up; I'm A Boomerang Kid!

The New York Times published an article today citing the emerging phenomenon of delayed financial independence for the 20-something generation.  In typical NYT fashion, the article makes every attempt to discount the economic condition as a fundamental contributor to the shifting social order.  Instead, "emerging adulthood" psychology professor, Jeffrey Arnett, is called upon to bring credence to the idea that the "failure to launch" generation is influenced just as greatly (if not more) by their tendency towards liberalized decision making as opposed to the economic landscape.  

Kids don’t shuffle along in unison on the road to maturity. They slouch toward adulthood at an uneven, highly individual pace. Some never achieve all five milestones [completing school, leaving home, becoming financially independent, marrying and having a child], including those who are single or childless by choice, or unable to marry even if they wanted to because they’re gay. Others reach the milestones completely out of order, advancing professionally before committing to a monogamous relationship, having children young and marrying later, leaving school to go to work and returning to school long after becoming financially secure.

While the article does provide insight into the collective psyche of "the boomerang kids", the overall analysis weighs too heavily in favor of a newfound paradigm of personal choice and not the reality of lacking options.  This should come as no surprise, as the NYT has been one of the foremost advocates of the "hopeful change" socialization process.  It's much easier to chalk the newly destitute workforce up as a youthful generation grappling with the real-world application of whimsical idealistic fantasies than to take responsibility for a fundamental failure in economic policy and the inability to address the root causes of our problems.

The Shape of the Recession

Options include(from least to most grim):  V, U, W, WW, L.  Wait, maybe that last one really ought to be |________.   From Mish Shedlock's Global Economic Trend Analysis:

The global slowdown – already evident in second-quarter data for 2010 – will accelerate in the second half of the year. Fiscal stimulus will disappear as austerity programs take hold in most countries. Inventory adjustments, which boosted growth for a few quarters, will run their course. The effects of tax policies that stole demand from the future – such as incentives for buyers of cars and homes – will diminish as programs expire. Labor-market conditions remain weak, with little job creation and a spreading sense of malaise among consumers....Avoiding double dip [or W] recession will be difficult....Fasten your seat belts for a very bumpy ride.

Shedlock himself is even less optimistic, noting that an L-shaped recession is indeed possible:

More likely to me is something like an "L" or a "WW" kind of scenario with the U.S. slipping in and out of recession for a prolonged period of time, perhaps 3-4 years or more....

If the Fed and Congress drag this out, which at this point seems likely, we will see a severe "L" or "WW" shaped recession playing out over several (or more) years.

It's a fairly dire picture, to say the least.  Read more of Shedlock's reasoning behind his prediction here.