Quote:
Originally Posted by cardiacpaul
Whiner.
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When things fall apart on an administration's watch. Like it or not, they own the issue.
In the case of the Bush administration this is especially true as they've been sitting there 8 years. Attempting to to squirm out of responsibility is frankly ... irresponsible. While I'm not whining, I am playing pin the responsibility on the correct donkey.
The housing bubble masked the underlying problems in our economy. As we exported high paying jobs offshore, the contruction / housing industry grew at an unprecedented pace and basically provided jobs for the displaced workers. The bubble ended. So did these newly created jobs. Our "new economy" is exposed. What amazes me is that it took so long for the so called experts to figure it all out and then there are people like you who still don't get it.
Taken from Nouriel Roubini's Global EconoMonitor this morning.
"..........a severe liquidity and credit crunch in financial markets that is getting worse than when it started last summer; high oil and gasoline prices; falling capital spending by the corporate sector; a slackening labor market where few jobs are being created and the unemployment rate is sharply up; and shopped-out, savings-less and debt-burdened American consumers who thanks to falling home prices can no longer use their homes as ATM machines to allow them to spend more than their income. Indeed holiday sales in the US were much lower in real terms than in 2006. As private consumption in the US is over 70% of GDP the US consumer now retrenching and cutting spending ensures that a recession is now underway.
On top of this recession there are now serious risks of a systemic financial crisis in the US as the financial losses are spreading from subprime to near prime and prime mortgages, consumer debt (credit cards, auto loans, student loans), commercial real estate loans, leveraged loans and postponed/restructured/cancelled LBO and, soon enough, sharply rising default rates on corporate bonds that will lead to a second round of large losses in credit default swaps. The total of all of these financial losses could be above $1 trillion thus triggering a massive credit crunch and a systemic financial sector crisis..............."
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This isn't a simple "correction". What the average 'Joe' doesn't realize is that our entire....I say again....the ENTIRE financial sector is now collapsing. It has the potential to be worse than the Great Depression. What's different this time is a smart guy running the Fed.
Let's all hope that he gets it right.