We’ve only just begun…
to watch the economy tank:
This Depression is just beginning
Mike Whitney
August 03, 2009 “Information Clearing House” – Too bad Pulitzers aren’t handed out for blog-entries. This year’s award would go to Zero Hedge for its “The ‘Money on the Sidelines’ Fallacy” post. This short entry shows why the economy will continue its downward slide and why the US consumer will not get off the mat and resume spending as he has in the past. The fact is the Net Wealth of US Households has “declined from a peak of $22 trillion to just under $12 trillion in early March.”
Ouch!
The problem is compounded by the fact that Total US Household debt, as of first quarter 2009, amounts to roughly $13 trillion, and has stayed within that range for the last 3 and a half years.
Zero Hedge:
“From the end of 2007 through Q1 of 2009, household equity has declined by 94%. Is it surprising that today’s GDP number would have been a complete debacle if the consumer had been left alone to prop the U.S. economy, on whom 70% of the economy is reliant? Obama pulled a Hail Mary with the stimulus: without it there would be no debate America is in a depression right now.” (http://www.zerohedge.com/article/money-sidelines-fallacy)</em>
Go ahead, brace yourself and read. Its gruesome.
