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02/09/2011

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BJ

Thank you for the David Stockman article, it certainly is an eye opener.

I'm just wondering when the health care system will implode. Will Obamacare push the date out, as a result of forcibly injecting another trillion dollars, or will it still implode before 2020? Look at the graphs on health care spending, now consider the graphs in David's article. Where is the money coming from? It is quite clear there aren't enough young healthy employed people, paying for "benefits" they aren't personally collecting on, to sustain this level of spending.

Yes, yes, bring on, I mean sustain, the debt bubbles. Yes, your country needs you. Buy Obama Bonds!

Bill Hicks

I agree that the headline unemployment rate is BS. But even the official figures look VERY alarming when you look at Calculated Risk's graph depicting the percentage of jobs lost since the start of the recession in December 2007. It shows this to be the second longest and THE deepest jobs recession since World War II. In fact we have for the last year been treading water just below the previous all time low on a percentage basis and in another year this will become the longest jobs downturn as well.

If even the BS official numbers look that bad when properly analysed and placed in historical context, you know we're REALLY in trouble.

Dave Cohen

As I said in the text, the historical data is useful. Calculated Risk's charts show just how deep the trouble we're in is.

BJ

Breaking news from Government Motors:

"GM unveils 550-horsepower Camaro"

"With a supercharged V8 engine and a hi-tech adjustable suspension system, the ZL1 will be the new 'ultimate Camaro.'"

http://money.cnn.com/2011/02/09/autos/camaro_zr1/index.htm

Yes, apparently much of America, and our government, live in their own little worlds, a world of denial.

Rumors of $4 gas this summer must be greatly exaggerated, as well as the declining availability of cheap and readily available fossil fuels. Incomes must be going up significantly more than the government is indicating, if Government Motors sees a sizable market for this car. Perhaps it comes with a roll out bed, for those living in their cars. Even before the crash, I was amazed to see folks driving $50,000 vehicles who lived in low rent neighborhoods. Instead of shanty towns, will we have SUV and Muscle Car towns?

Any bets on when GM needs to be bailed out again? Probably before 2020.

GM's final word on the project:

"The ZL1 is a "halo" car that will spark more consumer interest than sales, said Lassa. While pricing hasn't been announced yet, it's almost certain to be the most expensive Camaro available. Ultimately, he said, it will be one of the few models in GM's line-up that will sell in lower number than the Volt."

Definitely a money maker for the taxpayer then. I thought GM dumped all the losers? I guess we have to keep all the rich CEOs fitted out with expensive toys, even to the detriment of the company and taxpayer.

My current and last vehicle were GMs, both turned into money pits, and one wonders why GM needed bailing out.

BJ

The news keeps getting better:

"30% of mortgages are underwater"


Yes! SUV and Muscle Car Shanty Towns will be here sooner than we may expect.


"Sometime, somehow, the foreclosure crisis will ease. But probably not anytime soon. "

And the winner is?

"That will surely lead to higher foreclosure rates soon. That's because being underwater is second only to unaffordable payments in leading to foreclosure, according to Zillow's chief economist, Stan Humphries. "


The good news keeps getting better!

"Additionally, the report found that more than one-third of all homes were sold at a loss in December. That trend has been on a steady uptick for the past six months, as homeowners try to find ways around foreclosure or out from under their homes. "


When will the To Big To Fail need to be bailed out again? Surely before 2020!

http://money.cnn.com/2011/02/09/real_estate/underwater_mortgages_rising/index.htm

Hold onto your wallets folks, the government is going to be needing a TON more of your money.

BJ

If my bills don't get delivered, do I still have to pay them?


"Postal Service warns of default as losses mount"

"The U.S. Postal Service warned Wednesday that it may default on some of its financial obligations later this year after reporting yet another quarterly loss. The USPS, a self-supporting government agency that receives no tax dollars, said it suffered a loss of $329 million in the first quarter of the federal fiscal year 2011. That compares with a loss of $297 million a year ago."


"The agency raised rates an average of 3.6% in January."

And our incomes, and business profit margins, increased by how much over the past year? No REAL inflation???


Things can only get worse, as already, small businesses that can't afford to provide "free shipping" are being squeezed out.


And on the employment and pay front:

"The agency has also cut back on hours to save money. The agency expects to eliminate 40 million work hours this fiscal year as part of a plan to save $2 billion."

http://money.cnn.com/2011/02/09/news/economy/postal_service/index.htm

BJ

Someone on CR posted a link to this video, from 2008 no less, which goes along with my post about under water mortgages.

http://www.youtube.com/watch?v=zPHUtFxaJ8M

Note how the government message hasn't changed a bit since 2008.

Unbound

@BJ, Re:Foreclosures

Click on the link for the red dot special - google foreclosure map.
http://cryptogon.com/?p=20186

You can zoom in to your locale or pan out for the aggregate view. Provides an excellent perspective.

BJ

I've thought for a long time that I was pessimistic, but it appears I was being overly optimistic.

Time for Jose'

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