Hold on for Obamamanomics…..
Need to get our shit together because the Gov will be looking for working stiffs to rob to pay for all these bailouts and loss of pension money. Signs of desperation are starting to appear with the fixing of unemployment data.
Now we start hear about the end of the recession. Yea we all can borrow 50 grand on our houses that lost all of their equity. And don’t forget stocks are off by a third or so. This is after 2 trillion in stimulus created out of thin air, not counting the 2 trillion they already steal from us.
Expect a lot of hot air on health care to fix our problem. Or lending money for house with no money down FHA loans. Though how broke dicks can afford these programs is beyond me.
Maybe we can bum some more from foreigners. Not!
I don’t know about you but I get nervous when I hear all the talk about hopes for a consumer-led recovery. Why? Because consumers are already maxed out:
By the end of 2008, households were on the hook for $13.8 trillion in debt — nearly matching the $14.3 trillion output of the entire U.S. economy, not adjusted for inflation, that year.
Households are shedding debt; they’re just not doing it very quickly. They owed roughly 130% of disposable income at the end of 2008, down only slightly from a record 133% in the first quarter of 2008.
An old saw about U.S. consumers is never to underestimate their willingness to spend beyond their means. The debt-to-income ratio first crossed 100% during the 2001 recession, when debt-fueled consumer spending helped spark a recovery. It kept rising post-recession as super-low interest rates encouraged still more borrowing. And it rose even after the Fed raised rates, as consumers piled into mortgages to chase rising home prices.