It’s 2008 All Over Again… Only Worse
pals wanted to recreate the same booming leverage and fiscal insanity of the
bubble years. And they’ve done that in a big way. Among their various
are at levels not seen since 2008.
prices are at levels not seen since 2008.
US Dollar has fallen to levels not seen since 2008.
leverage is at levels not seen since 2008.
stocks are at levels not seen since 2007.
Street bonuses are at levels not seen since 2007.
striking the similarities. And all the Fed and US Government had to do was:
Trillions in Bailouts and Stimulus
the US Dollar
the difference this time around?
off, the US consumer is in far worse shape than in 2008. The US has lost some 7.5
million jobs since 2007. The U-6 unemployment rate (which accounts for
unemployed and underemployed) stands at 16.2%. These folks are in far worse
positions to stomach higher fuel and food prices this time around.
which, the number of people on food stamps is also up 58% since 2007. However,
even this safety net is proving less and less helpful as food prices skyrocket.
Indeed, Wal-Mart’s CEO recently commented that the firm’s customers are “running
out of money” due to higher fuel prices.
As for those
who have been receiving unemployment checks, the situation is getting grim.
Some 2.3 million of them have lost their coverage since last year. The Feds
claim that the US economy created 1.3 million jobs so only 1 million of the 2.3
are people who lost coverage and have no income. However, everyone on the
planet knows the “jobs created” myth is as full of BS as the “recovery” myth.
with all of this is the following: we have entered a period quite similar to
2008 all over again. Energy and food prices are soaring. And the US Dollar is
difference is that this time around, the US economy is FAR more fragile than it
was in 2008. The average American has far less to fall back on than in 2008.
And there are far fewer people with jobs than then.
On top of
this, the US debt load and balance sheet is far FAR worse than it was in 2008. We’re
running deficits and debt-to-GDP levels comparable to Greece.
words, when this mess comes unhinged it’s going to be much, much worse than in
2008. And believe me, it WILL come unhinged.
time, when it does, the Fed will have NOTHING to stop it. The Fed’s already
grown its balance sheet to roughly $3 trillion AND used every weapon it has to
combat Round One of the Financial Crisis. So when the next round hits this time
around, the Fed will be powerless to do anything about it.
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