[TropicCat]

The entire premise of both government and our central bank policies is that "credit is too tight" and the banks have to begin lending again to revitalize our economy. In a nutshell we are capitalists without access to capital.

However, when you look under the hood, so to speak, what we continue to see is proof... month after month that credit has been and still is too loose. How can this be? Didn't I just contradict myself in two sentences? Yep..but check out the following list which demonstrates that consumers are unable to pay back the money they've been lent. This is credit card monthly data on charge offs.

Discover Financial Services Reports Aug Master Trust; Net Charge offs 9.16% v 8.43% m/m

JPMorgan Chase and Co Reports Aug Master Trust; Net charge offs 10.07% v 7.92% m/m

Bank of America Corp Reports Aug Master Trust; Net Charge offs 14.54% v 13.82% m/m

Citigroup Inc Reports Aug Master Trust; Net Charge offs 12.1% v 10.03% m/m

Foreclosures continue to be at an all time high

I'm waitng for commercial data to round out this list, but it isn't going to be any better. I met with the largest commercial broker in central Florida last week and they are predicting total collapse from what activity they are seeing in their marketplace. Nationwide estimates this year say that 100,000 retail shops will close and available commercial inventory has risen sharply.

Lawrence Summers, one of Obama's advisers and a prominent economist is unsure why unemployment is rising so quickly. If a guy of his stature says he doesn't know, the underlying problem is a systemic change. Apparently he didn't get the memo that white collar jobs are disappearing overseas as capitalism is heading for lower labor costs and tossing the American economy under the bus in the process. In the meantime U6 is almost 16.8% unemployment and Shadowstats.com says even higher ... 21%.

Neither the Bush administration, nor this one seem to have any interest of addressing correction of systemic changes, so we have no jobs, consumers tapped out and unable to pay their bills, and no changes in policy in sight to correct any of it. The economy continues to spiral downward as 70% of our economic engine (the American consumer) have been hit so hard they can't get up.

So, unemployment, credit, commercial property, residential property, consumer spending. All key indicators say, no rebound, continued recession until someone finally calls this what it is. The 2nd Great Depression. And does something about it.

This is exactly what I predicted 2 years ago in this thread. Remember EVERYTHING can be made cheaper overseas.