Another Great Depression Coming Soon?

Please read my latest blog entry and post your comments here:

http://pensionpulse.blogspot.com/2010/03/another-great-depression-coming-soon.html

Thank you,

Leo Kolivakis

Comments

[Anonymous]

And once they figure out why prices areskyrocketing they will add to the fire by cleaning out the shelves before the price doubles yet again.

[Caviar Emptor]

I've been saying this for some time. The "experts" can't agree on the question "is it inflation or deflation?" because it's actually both. And this is the perfect storm that could devastate. It is a direct result of the Fed's current "reflation at any cost" which is superimposed on the last 30 years of "supply-side" folly. 

Most people can see the inflationary forces which are augmenting the cost of living and doing business. They're beginning to accelerate. The trouble with reflation policy is that you can't fully control what reflates. Try as Ben might to contain the monetary expansion in the shadow banking sector and away from M2, there will always be collateral damage. 

The deflationary forces are clear too. Biggest of all is the 30 year stagnation in real wages and personal incomes, courtesy of supply-side policies. That's why productivity is soaring. Tax policy gave favorable treatment to passive wealth accumulation over ordinary income and "making things". And let's not forget deflating real estate. Finally there's a negative wealth effect due to deflating retirement assets from broken pension funds, and the widespread belief that medicare and social security benefits will be curtailed.

Double whammy.

[Caviar Emptor]

I've been saying this for some time. The "experts" can't agree on the question "is it inflation or deflation?" because it's actually both. And this is the perfect storm that could devastate. It is a direct result of the Fed's current "reflation at any cost" which is superimposed on the last 30 years of "supply-side" folly. 

Most people can see the inflationary forces which are augmenting the cost of living and doing business. They're beginning to accelerate. The trouble with reflation policy is that you can't fully control what reflates. Try as Ben might to contain the monetary expansion in the shadow banking sector and away from M2, there will always be collateral damage. 

The deflationary forces are clear too. Biggest of all is the 30 year stagnation in real wages and personal incomes, courtesy of supply-side policies. That's why productivity is soaring. Tax policy gave favorable treatment to passive wealth accumulation over ordinary income and "making things". And let's not forget deflating real estate. Finally there's a negative wealth effect due to deflating retirement assets from broken pension funds, and the widespread belief that medicare and social security benefits will be curtailed.

Double whammy.

[Anonymous]

Leo,
you have been right about your bubbliness on equities between December and now. how about going forwards ?

[Leo Kolivakis]

I remain long stocks but focus on a few sectors: tech, semis, software, alternative energy, medical devices and healthcare (especially health insurance).

[Anonymous]

Kind of puts hope on the burner..

Bright-Sided: How the Relentless Promotion of Positive Thinking Has Undermined America.

Yes, ”Positive Thinking” & “Happiness” Are Undermining America!

She pokes huge holes in the myth of positive thinking and its “new age” siblings — optimism, self-esteem, positive psychology and the new “science of happiness” — that are undermining America with false promises of an entitlement of prosperty. In BusinessWeek Michelle Conlin focused on Ehrenreich’s warning to future whistle-blowers in the chapter on “how positive thinking destroyed the economy.

http://wallstreetwarzone.com/positive-mental-attitude-killing-wall-street/

[Psquared]

Don't forget the Kenneth Copeland's of the world preaching the "gospel of prosperity." Americans get it both ears. At home on the tube and at church on Sunday.

[Mr Lennon Hendrix]

I like the article, as it addresses quality issues; these being the lack of American insight and foresight as the proverbial house burns down.  However, a critique of the wordplay of the author; Ignorance is not "happiness".  Hopeful thinking is not "positive" thinking.