Share on Google Plus Share on Twitter Share on Facebook Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend 1 (1 Shares)  
Printer Friendly Page Save As Favorite View Favorites View Article Stats   3 comments

OpEdNews Op Eds

Obama's Depression

By (about the author)     Permalink       (Page 1 of 3 pages)
Related Topic(s): ; ; , Add Tags Add to My Group(s)

Must Read 3   Well Said 3   Supported 2  
View Ratings | Rate It

opednews.com Headlined to H3 10/11/11

Become a Fan
  (191 fans)

Obama's Depression - by Stephen Lendman

Deepening global Depression.

Chosen to serve power, not popular interests, Obama wrecked America's economy to save giant Wall Street banks. He's still doing it, despite claiming he's been out in front doing all he can.

By bailing out too-big-to-fail banks and waging multiple imperial wars, he intensified social misery.

As a result, Main Street is mired in protracted Depression. Economist David Rosenberg believes we're in the "third inning" of hard times malaise.

Four occurred in the 19th century. Until now, the 1930s Great Depression was America's last severe downturn, lasting a decade, punctuated by failed bounces.

America's Greatest Depression began in late 2007. Rosenberg calls is a "modern-day" one similar to what Japan experienced for over two decades. It's still ongoing, boding ill for US workers if America replicates Japan's experience.

Depressions occur "once it becomes painfully obvious" that conditions don't improve despite "repeated bouts of policy stimulus."

Most of America's went for banker bailouts, tax cuts for corporate favorites and super-rich elites, as well as quantitative easing money creation for speculation, not economic growth. 

In contrast to recessions lasting six to 18 months, depressions last years.

From 2002 - 2007, America's economy was massively manipulated and levered. As a result, financial activities comprised 40% of profits. At the same time, household debt to income and assets "surged to unprecedented levels and the personal savings rate" was negative when the housing bubble peaked.

As a result, America experience levered prosperity. Conditions are now reverting to the mean. A long way down remains.

Since fall 2007, GDP, production, real income, and other major economic indicators never recovered to previous cycle highs. In normal times, post-recession tops are achieved and surpassed in a year or less.

Not now. Home sales are 22% lower than in late 2009. Employment growth, in fact, has been stagnant for over a decade. The S&P 500 is no better than in spring 1998.  In terms of job creation (what matters most on Main Street) and equity appreciation, America's had a lost decade well into another one.

Recessions usually reflect inventory cycles. Traditional monetary and fiscal stimulus reignites demand.

In contrast, "balance sheet compression and deleveraging" characterize depressions, including debt reduction, asset liquidation, and rising savings as consumers hunker down in hard times.

Next Page  1  |  2  |  3

 

I was born in 1934, am a retired, progressive small businessman concerned about all the major national and world issues, committed to speak out and write about them.

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact Author Contact Editor View Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The McCain-Lieberman Police State Act

Daniel Estulin's "True Story of the Bilderberg Group" and What They May Be Planning Now

Continuity of Government: Coup d'Etat Authority in America

America Facing Depression and Bankruptcy

Lies, Damn Lies and the Murdoch Empire

Mandatory Swine Flu Vaccine Alert

Comments

The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
3 people are discussing this page, with 3 comments
To view all comments:
Expand Comments
(Or you can set your preferences to show all comments, always)

[[KINGG]]MAYBE KING BARRACK AND QUEEN MICHELLE CAN... by . . on Tuesday, Oct 11, 2011 at 5:36:59 AM
He said in answer to questions about justice for B... by conrad elledge on Tuesday, Oct 11, 2011 at 2:07:54 PM
but as Harry Truman said, "the buck stops here." ... by Richard Girard on Tuesday, Oct 11, 2011 at 3:07:37 PM