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Originally posted by pause4thought
reply to post by St Udio
Interesting thought, St.
Do you not think utilities are susceptible to downturns in the same way oil is? (I wonder how they shaped up during the Great Depression?)
The recession crushed the net worth of middle-class families as real estate values tumbled, according to a survey released by the Federal Reserve on Monday.
The Fed’s survey of consumer finances between 2007 and 2010, which is adjusted for inflation, showed median income fell 7.7% from $49,600 in 2007 to $45,800 in 2010 and that median net worth fell 38.8% from $126,400 in 2007 to $77,300 in 2010, approximately the level recorded in 1992.
The post-Greek election relief rally is completely gone. The euro is down. European stocks are down. And U.S. futures are down.
Nowhere is the crisis more apparent than in Spain, where government borrowing costs just went parabolic.
The 10-year yield is now north of 7.13 percent, a euro-era, all-time high. It opened at 6.84 percent this morning.
And we thought it looked bad last week when it hit 6.90 percent.
Considering the 12.5 million Americans who were unemployed in April, today’s figures indicate there are about 3.7 people vying for every opening, up from about 1.8 when the recession began in December 2007.
All the other components of the global situation are in fact pointed in a negative, even catastrophic, direction. Here again, the main media are starting to echo a long-standing situation anticipated by our team for summer 2012. Indeed, in one form or another, more often on the inside pages than in big headlines (monopolized for months by Greece and the Euro (4)), one now finds the following 13 topics:
1. Global recession (no engine of growth anywhere / end of the myth of the “US recovery”) (5)
2. Growing insolvency of the Western banking and financial system and henceforth partially recognized as such
3. Growing frailty of key financial assets such as sovereign debts, real estate and CDSs underpinning the world’s major banks’ balance sheets
4. Fall off in international trade (6)
5. Geopolitical tensions (in particular in the Middle East) approaching the point of a regional explosion
6. Lasting global geopolitical blockage at the UN
7. Rapid collapse of the whole of the Western asset-backed retirement system (7)
8. Growing political divisions within the world’s “monolithic” powers (USA, China, Russia)
9. Lack of “miracle” solutions as in 2008 /2009, because of the growing impotence of many of the major Western central banks (Fed, BoE, BoJ) and States’ indebtedness
10. Credibility in freefall for all countries having to assume the double load of public and excessive private debt (8)
11. Inability to control/slow down the advance of mass and long-term unemployment
12. Failure of monetarist and financial stimulus policies such as “pure” austerity policies
13. Quasi-systematic ineffectiveness henceforth of the alternative or recent international closed groups, G20, G8, Rio+20, WTO,… on all the key topics of what is no longer in fact a world agenda absent any consensus: economy, finances, environment, conflict resolution, fight against poverty…