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In his 1990 book titled, "A Short History of Financial Euphoria," John Kenneth Galbraith said:
"All crises have involved debt that, in one fashion or other, has become dangerously out of scale in relation to the underlying means of payment."
His analysis is truer than ever today with out-of-control debt levels.
In 1933, economist Irving Fisher said:
"The very effort of individuals to lessen the burden of their debts increases it, because of the mass effect to liquidate. The more the debtors pay, the more they owe. The more the economic boat tips, the more it tends to tip. It is not righting itself, but is capsizing."
Troubled global economies today are sinking. Rosenberg sees years more troubled times before today's economic problems are resolved. Already, we've had 12 years of stagnant employment and capital market capital appreciation, and nothing ahead looks promising.
Key economic indicators are rolling over. Weakness abounds. Consumer spending focuses on necessities, not unaffordable discretionary items bought more readily in better times.
Families struggle with debt. Mortgage and utility payments are delayed. Too often they're not paid. Foreclosures follow as well as power shutoffs or warnings.
September consumer expectations surpassed the 2008 low, and lowest reading since May 1980 when the economy was seriously troubled. Other data also forecast weakness.
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