No need to even excerpt the text — the charts tell the entire story . .


Still Crawling Out of a Very Deep Hole
NYT, April 7, 2012   

Category: Economy, Employment

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

10 Responses to “Crawling Out of a Very Deep Hole”

  1. Sechel says:

    It’s become axiomatic that home prices need to rise. We need to remember that lower home prices make homes affordable and make possible larger down payments which makes the housing sector safer in the future. This chart tells me the system is correcting itself and that all bubbles eventually end.

  2. Frilton Miedman says:

    Two more extremely relevant charts that must be factored alongside the above to fully understand what’s happened, and what need be done to repair it.

    The 250% increase in consumer debt Alongside flat wage growth since 1980 and the increase from $1.5 trillion to $15 trillion in us debt since 1980.

    The 280% increase in wealth for the top 1% since 1980.

    It would seem that both the consumer and government are borrowing money to facilitate the growth of wealth for a small minority of Americans.

    This is not what I’d call “trickle down”.

  3. willid3 says:

    so we really never recovered from the 2001 recession? that seems to match what folks have encountered. but then to many said that it was just anecdotal evidence.

  4. Through the Looking Glass says:

    Is it just me that notices that now that the market has reach an unsustainable peak that the tales of how badly broken the machine is trickle out?
    It was a gorge fest at the government trough but dinners over now so all the Bernanke welfare cats can burp, stick a toothpick in their mouth, and have a good laugh at what they got away with. No facts matter now so yea baby pelt them with the horrors they created, the world they created and destroyed owed them the rest of the money…. they won so what do they care what anyone thinks?

  5. gman says:

    No job/wage growth and further decreases in home prices.. keep yelling “hyperinflation around the corner”

  6. constantnormal says:

    A lot can happen in a decade of financial misery.  I expect Bananamerica to provide at least one brush with a US Treasury default along the way.  

    Whether it actually happens or not is beside the point, it is whether the markets believe it will happen.

    And looking back at last summer’s shameful bit of kabuki theater with our Congress threatening to shoot the nation in the head over a make-believe “debt ceiling”, is there any doubt whatsoever as to their willingness to do this again and again, in pretty much every odd-numbered year ahead, until somebody says “oops”, and Bananamerica slides into default?

  7. constantnormal says:

    Re: … until somebody says “oops” …


    Gunslingers in the Old West never worried about retirement, I expect that 21st century gunslingers are no different … They always expect to be the quickest on the draw, the smartest guys in the room, the ones that make things happen to others …

    “hedges always work” … Those who watched the portfolio insurance meltdown in the 1970s (or AIG, in more recent times) know better.

    Investing is more akin to poker than chess. Gotta know when to fold ‘em.

  8. victor says:

    The US has been in stealth default for years now: debased dollar + low/negative interest rates dictated by the Fed + inflation (ex housing). Debt is ALWAYS re-paid: either by the debtor or by the creditor or a combo of both. And finally: the debtor ALWAYS has the upper hand especially when the politicians enable him. The creditors hold a very week hand here, look at the way they’re being coerced into lower and lower interest rates and how docile they’ve remained (China cannot have enough of our paper).


    BR: WTF is a stealth default?

  9. Mal Williams says:

    At some time in the past you have used the phrase: “Does any body want to start a thread on —-”
    I am working on a web site where the primary focus will be on discussions. I would like the comments to be tracked using multiple thread IDs. Do you have that capability or was that just a convenient term? If you do, could you please let me know the source of the technology?

    thanks, Mal